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TANMOY (director)     26 September 2009

EXECUTION OF ARBITRAL AWARD

Respected Members, Please guide me in following questions:

1. Final Arbitral Award passed in Chennai. Defendant is living in Delhi. In Which court the Execution petition to be filed? District Court where the arbitration took place or Delhi where defendant resides?

2. What is the process of enforcing INTERIM Arbitral Award? Is there also a limitation of wait of of 4 months or not? In which court the execution petition to be filed for executing interim award? Regards



Learning

 12 Replies

SALA SATEESH (lawyer)     26 September 2009

Dear Tanmoy,

Award shall be enforced where the arbitral proceedings are conducted ie., territorial jurisdiction &  would like to know -   whether both the parties agreed for appointment of arbitrators or done by invoking Section 11 of the arbitration act, 1996 - needs to clarified.

If so, appointed by following due-procedure laid under arbitration act then that Court only shall have the power of enforcing the award.

For enforcing award, it should attain finality of award which means that from the date of award there shall be a  lapse of three months  till then you can't enforce the award unless the time so specified under S.34 of the act get exhausted, then it can be enforceable as per s.36 of the act. After making an application before the respective Jurisdictional Court- you can ask for transfer of execution peition to Delhi as the respondent  is residing there.

As regards the second limb: once the award is passed there would be no question of entertaining the enforcement of Interim arbitral award.(here needs a much clarity of what exactly - is  it of interim measures u/s9 or s.17 of the act).

Kindly revert with full details so as to advice you properly.

Trusting my answer to your query would able to give some clarity

Regards,

S.Sateesh

sateesh_1974@rediff.com

N.Ramakrishnan (Advocate/ Senior Partner)     26 September 2009

Dear Mr. Tanmoy,

In so far as execution is concerned you should file the Execution Petition before the District Court/ High Court Madras and seek transfer of the same to the court of competent jurisdiction in Delhi. Thereafter the court in Chennai will transfer the Execution Petition to the Delhi court which will proceed with the execution.

Reg the execution of Interim award, once the Final Award is passed, the Interim Award becomes nonest. Therefore the execution of Interim Award after passing the Final Award does not arise.

Thanks,

N.Ramakrishnan, ADV 

H. S. Thukral (Lawyer)     26 September 2009

The place of arbitration proceedings or the place of publishing the award is not enough to determine the 'court'  of competent jurisdiction. More facts are needed to look into the matter.  As far as the appointment of arbitrator under section 11 of ACA is concerned, my ld. friend Satish has correctly replied.  

Kamal Grover (Advocate High Court Chandigarh M:09814110005 email:adv.kamal.grover@gmail.com)     26 September 2009

u can file execution at the place where award is granted but if the execution is to be done then court can attach the land or property etc of the other party and the case would be transffered to the local jurisdiction of the place where property is situated.

Regards

adv.kamal.grover@gmail.com

TANMOY (director)     27 September 2009

Final award has not been passed yet interim award passed under section 17. arbitrator appointed by parties and not by court unser sec 11. How to enforce the Interim Award?

Ritu Kalia (Lawyer)     29 November 2011

Dear Members,

Once Final Arbitration Award is passed, how to execute the same What is the limitation period in filing execution petition. In one of my case, three years back exparte arbitration award was passed against my client, we hav not challenged the same nor the party in whose favour the award was passed has preferred execution proceeding. Can they after lapse of three yr prefer execution proceeding? 

pls suggest. 

 

 

rajasekaran (director)     13 December 2011

EP can be persued in chennai. Territorial jurisdiction would lie in chennai.

Apoorv Garg (-)     12 March 2013

You can directly apply to the Dstrict Court in Delhi now. You need not first apply in Chennai and then get it transferred to Delhi. My opinion is on the basis of a judgment of Madras High Court. Please feel free to contact me in case of any query at apoorv6891@gmail.com

Apoorv Garg (-)     29 May 2013

I am sending the link of the judgment of the Madras High Court where they have held that the provisions of CPC are not applicable on the Arbitral Tribunal.

https://indiankanoon.org/doc/178404054/

Please go through the same.

Thanks.

rajasekaran (director)     09 September 2013

HC upholds MSME Act provision; Facilitation Award to be contested on payment of 75% pre-deposit

07 Sep 13 16:09

 

New Delhi, Sept 7 (KNN)  The recent judgement of the Madras High Court upholding award of the Facilitation Council in favour of Nortan Intec Rubber on a petition filed by Goodyear India Ltd, has come as a big relief to the entire MSME sector.

This is because the High Court did not find the merit in the contention of Goodyear India to set aside the award of the Facilitation Council since the petitioner had failed to deposit 75 per cent of the admitted amount, i.e. Rs 80.11 lakh with interest in accordance with MSMED Act.

The Judgement has wider implications as anyone challenging the award of the Facilitation Council will have to mandatorily pre-deposit 75 per cent of the admitted amount within 120 days of receipt of the award.

Under the MSME Act of 2006 where a buyer delays payment beyond 45 days from the date of supply, the SME supplier can approach the Micro Small Enterprises Facilitation Council (MSEFC) and seek an award or a decree.

While the awards of the Council can be appealed against in Higher Courts with mandatory pre-deposit of 75 per cent of the award amount, the buyers under one or the other pretext prolong litigation locking the SMEs into legal knots.

Goodyear India Ltd and Nortan Intec Rubber (P) Ltd had entered into an agreement for supply of raw materials and consequent supply of finished products.

As dispute arose, Nortan invoked the relevant provisions of MSMED Act, 2006 and the matter reached the Facilitation Council.

The Council passed the Award directing Goodyear India to pay Rs 80.11 lakh as principal amount along with interests.

The Court held that even assuming that argument of the petition, Goodyear India is acceptable, it failed to comply with the statutory requirement as on the date of filing the petition.

The petition though filed on March 29, 2010 was without any pre-deposit of 75 per cent of the admitted amount. The amount was deposited much after the expiry of the limitation period- April 14, 2010 and hence original petition dismissed as barred by limitation.

The judgement has wider implications for the entire procurement policy for the MSME sector and the problems faced in implementation of the same. 
(KNN/PC)

 

SOMADUTTA PUROHIT (ADVOCATE)     15 May 2014

Dear All

 I  am not satisfied with the narration of  jurisdiction for enforcement of arbitral award. It can be enforced by filing execution either where any of the party to the agreement resides or in the place where the office of the arbitrator located.

 Give your comments.

Saurendra Rautray (advocate)     11 December 2015

Hi, The Jurisdiction in an agreement shall be governed by the jurisdiction clause in the agreement and if there is no agreed jurisdiction then the jurisdiction in arbitration agreement would lie on consideration of few point. Jurisdiction would lie where the Lis is situated, where the agreement was signed, payment was made etc. I hope this has bought some light. Mr Tanmoy file execution case if award has been passed. Regards Saurendra Rautray Rautray&co www.rautray.com 09437008255

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