The Single Judge dismissed an application seeking a prohibitory order under the Arbitration and Conciliation Act, 1996. Relying on a prior order, the Court held that once an arbitral award is passed and enforceable, the remedy lies in the executing court, not under Section 9.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
(ORDINARY ORIGINAL CIVIL JURISDICTION)
TUESDAY, THE 09TH DAY OF MARCH 2021
THE HON'BLE MS. JUSTICE P.T.ASHA
A. No.2892 of 2020 In the matter of Arbitration and Conciliation Act, 1996 and In the matter of Arbitration of dispute between M/s.Navayuga Info Tech Private Limited and M/s.ITI Limited and Tamil Nadu Electricity Board, (now known as TANGEDCO LTD.) in relation to Award dated 11.06.2020
Tamil Nadu Generation and Distribution Corporation Limited, (now known as TANGEDCO Ltd.,) rep. by its Chief Engineer/IT, 144, Anna Salai, Chennai-600 002.
... Applicant
-Versus-
https://hcservices.ecourts.gov.in/hcservices/ Corporate Marketing, Unit F-84, ITI Complex, Doorvani Nagar, Bangalore-500 016. ... Respondents
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3. State Bank of India, C.C.G. Branch, Banjara Hills, Hyderabad.
Application praying that this Hon'ble Court be pleased to issue a prohibitory order prohibiting the 3rd respondent/Garnishee from paying any amount to the tune of Rs.93,36,24,640/- (Rupees ninety three crores thirty six lakhs twenty four thousand six hundred and forty only) to the 1st respondent or to any other third persons/parties/group companies and direct the Garnishee to deposit the said amount to the credit of the application.
This Application coming on this day before this court for hearing the court made the following order:
In the above matter, the award has been passed as early as on 11.06.2020. After the passing of the Award, the applicant has moved the
Section 9 application for a prohibitory order restraining the 3rd respondent/ Garnishee from paying a sum of Rs.93,36,24,640/- to the first respondent or
any other 3rd persons/parties/group companies. The first bench of this Court by order dated 15.02.2021 in OSA.No.53 of 2021 has observed that the Arbitration and Conciliation Act covers all things pertaining to arbitration starting from the initiation of the arbitral proceedings by issuing notice
under Section 21 of the Act till the Award is passed and the enforcement
kicks in. The Bench had observed that once the order becomes enforceable,
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then it is for the award holder to approach the executing court.
the application is dismissed. No costs.
Sd/.P.T.A.J.
09.03.2021
//Certified to be a true copy//
Dated this the th day of 2021.
su.08.04.2021 COURT OFFICER(O.S.)
From 25.09.2008 the Registry is issuing certified copies of the
Order/Judgment Decree in this format.
1 issue framed by the court
Whether a Section 9 application for a prohibitory order can maintain against a garnishee after an arbitral award has been passed and is enforceable.
Tamil Nadu Generation and Distribution Corporation Limited
Navayuga Info Tech Private Limited
ITI Limited
State Bank of India
P.T. Asha
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
