Disposed¶31

M/S Chartered Mercantile M.B. Ltd. v. M/S Posco E and C India Pvt. Ltd. and Anr.

Punjab & Haryana HC22 Jul 2025FAO-COM/7/2023

Case brief

AI extract

What is this about?

Punjab & Haryana High Court, FAO-COM No.7 of 2023 (O&M), decided 22.07.2025 (Lisa Gill, J; Meenakshi I. Mehta, J): Chartered Mercantile M.B. Ltd. v. POSCO E&C India Pvt Ltd — commercial appeal disposed of as infructuous; respondent No.1 abandoned reliance on ex-parte Section 9 order dated 18.01.2022 after commencing arbitration and filing Section 17 application; Order 9 Rule 13/Section 151 CPC; execution and contempt proceedings not pursued; liberty reserved to appellant.

What did the court decide?

Appeal disposed of as infructuous; pending applications disposed of; liberty reserved to the appellant to file an appropriate application if any proceedings are initiated on the basis of the order dated 18.01.2022. ¶31

M/S Chartered Mercantile M.B. Ltd. Vs M/S Posco E and C… — Arbitration | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the appeal against dismissal of the appellant's application under Order 9 Rule 13 read with Section 151 CPC is rendered infructuous in view of respondent No.1's stand that it does not seek to rely upon the ex-parte order dated 18.01.2022.

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Court's answer

The appeal is rendered infructuous because respondent No.1 does not seek to rely upon the ex-parte order dated 18.01.2022, having commenced arbitration proceedings against respondent No.2 and pursued remedies under Section 17 of the Arbitration Act.

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Ratio / Principle

The appeal is ordered to be disposed of accordingly.

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Key takeaways

Pending applications, if any, are disposed of.ratio¶32
Liberty is afforded to the appellant to file an appropriate application in case any proceedings are initiated on the basis of the order dated 18.01.2022 passed by the Commercial Court.ratio¶33

Detailed headnote1 paragraphs

High Court of Punjab & Haryana disposed of FAO-COM No.7 of 2023 as infructuous. The appellant had assailed the order dated 20.03.2023 of the Exclusive Commercial Court, Gurugram dismissing its application under Order 9 Rule 13 read with Section 151 CPC to set aside the ex-parte order dated 18.01.2022 passed in respondent No.1's petition under Section 9 of the Arbitration and Conciliation Act, 1996. During pendency, respondent No.1 filed CM No.32-FA-COM of 2025 under Section 151 CPC stating that, having commenced arbitration proceedings against respondent No.2 and filed a Section 17 application, it did not intend to pursue the order dated 18.01.2022, the Execution Petition (CIS No.Exe 810 of 2023) or the Contempt Application (CM 475 of 2022), and would withdraw the contempt petition listed for 28.07.2025, without prejudice to its available remedies. Counsel for the appellant conceded the appeal was infructuous; the Court disposed of the appeal and pending applications, granting the appellant liberty to move an appropriate application should any proceedings be initiated on the basis of the order dated 18.01.2022.

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IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

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FAO-COM No.7 of 2023 (O&M)

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Date of Decision: 22.07.2025

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M/s Chartered Mercantile M.B. Ltd.

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…..Appellant.

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Versus

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M/s POSCO E&C India Private Limited and another

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.....Respondents.

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CORAM: HON’BLE MRS. JUSTICE LISA GILL HON’BLE MRS. JUSTICE MEENAKSHI I. MEHTA

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Present:Mr. Dheeraj Mahajan, Advocate for the appellant.

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Mr. Ambanshu Sahni, Advocate for respondent No.1.

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Mr. Ashwani Malhotra, Advocate for respondent No.2. (joined through Video-Conferencing)

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LISA GILL, J . (Oral)

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Prayer in this appeal is for setting aside order dated 20.03.2023 passed by learned Additional District Judge-cum-Presiding Judge, Exclusive Commercial Court at Gurugram (for short ‘the Commercial Court’), whereby application under Order 9 Rule 13 read with Section 151 CPC filed by appellant for setting aside ex-parte order dated 18.01.2022 passed by learned Commercial Court in a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (for short ‘the Arbitration

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YAG DUTT 2025.07.30 18:54 I attest to the accuracy and authenticity of this order/judgment

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FAO-COM No.7 of 2023 (O&M) -2-

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Act’) filed by respondent No.1, was dismissed.

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Application i.e. CM No.32-FA-COM of 2025 has been filed on behalf of respondent No.1 under Section 151 CPC seeking disposal of present appeal as infructuous.

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Learned counsel for respondent No.1, while referring to above-said application duly accompanied by an affidavit of authorized representative of respondent No.1, submits that this appeal is rendered infructuous because respondent No.1 does not seek to rely upon order dated 18.01.2022 in view of the arbitration proceedings initiated and application under Section 17 of the Arbitration Act filed by it against respondent No.2. Learned counsel for respondent No.1 submits that contempt petition, which is listed for hearing on 28.07.2025, shall also be withdrawn. Such action, it is submitted, should however not be treated as an impediment or estoppel qua remedies as may be available to respondent No.1 in accordance with law or admission of any kind against itself.

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Para No.13 of the afore-referred Civil Misc. Application and the prayer thereof read as under:-

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“13. In view of the commencement of arbitration proceedings between Respondent No.1 and Respondent No.2 with the correct procedure with an order from the court of competent jurisdiction, and the remedies being pursued therein which may be construed as overlapping, Respondent No.1 does not intend to pursue the Impugned Order dated 18.01.2022, the Execution Petition bearing CIS No.Exe 810 of 2023, filed pursuant thereto and the

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YAG DUTT 2025.07.30 18:54 I attest to the accuracy and authenticity of this order/judgment

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FAO-COM No.7 of 2023 (O&M) -3-

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Contempt Application bearing no.CM 475 of 2022 filed before Hon’ble District Court, Gurugram.”

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“ Prayer

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x x x x x

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i. Pass an order directing the disposal of the Captioned Appeal while recording the submission of the Respondent No.1 that it does not seek to rely upon the Impugned Order dated 18.01.2022 in view of the arbitration initiated and application under section 17 of the Arbitration Act filed by it against the Respondent No.2;”

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Learned counsel for the appellant is unable to deny that in the present factual matrix, this appeal is indeed rendered infructuous.

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Ordered accordingly.

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Pending application(s), if any, is/are disposed of.

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Liberty is, however, afforded to the appellant to file an appropriate application in case any proceedings are initiated on the basis of order dated 18.01.2022 passed by learned Commercial Court.

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(LISA GILL) JUDGE

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(MEENAKSHI I. MEHTA)

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July 22, 2025 JUDGE Yag Dutt

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Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No

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YAG DUTT 2025.07.30 18:54 I attest to the accuracy and authenticity of this order/judgment

M/S Chartered Mercantile M.B. Ltd. v. M/S Posco E and C India Pvt. Ltd. and Anr.

Case brief

What is this about?

What did the court decide?

M/S Chartered Mercantile M.B. Ltd. v. M/S Posco E and C India Pvt. Ltd. and Anr.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

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