Ramaprasad (Professor) 16 December 2021

Complied with district court judgement but filed appeal in high court

My stock broker had filed application u/s 34 of arbitration act to set aside the arbitration award which was in my favour. The District Court dismissed his application. He then complied with the award and paid me the amount. A month later, he filed an appeal in the High Court against the judgement. What stand should I take in the High Court?

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Kawmini Liyanage 18 December 2021

Greetings!

According to your query, the action is instituted under Section 34 of the Arbitration Act.

34. Power to stay legal proceedings where there is an arbitration agreement. Where any party to an arbitration agreement or any person claiming under him commences any legal proceedings against any other party to the agreement or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings may, at any time before filing a written statement or taking any other steps in the proceedings, apply to the judicial authority before which the proceedings are pending to stay the proceedings; and if satisfied that there is no sufficient reason why the matter should not be referred in accordance with the arbitration agreement and that the applicant was, at the time when the proceedings were commenced. and still remains, ready and willing to do all things necessary to the proper conduct of the arbitration, such authority may make an order staying the proceedings.

If he has already paid the amount that has been ordered through arbitration award, which he has already complied to. Therefore, the "at any time before filing a written statement or taking any other steps in the proceedings" clause in section 34 has been violated by him. hence, he is not capable of filing an action under the said section.

Moreover, he does not have a cause of action. A suit can only be filled if there is a plausible cause of action is present. Therefore, when the action is taken into consideration by the court by way of Answer contest (object), the suit, as he does not have a plausible cause of action; can plead the court to dismiss the case.

Regards,

Kawmini Liyanage