Allowed

Chief Manager and Managing Director v. M/S Baba Ramdev Foundry through Properietor Smt. Shanti Devi W/O Kanahiya Lal

Rajasthan HC10 Jan 2023CMA/2241/2019

Case brief

AI extract

What is this about?

Hon'ble High Court of Rajasthan, Bench at Jaipur, allowed this civil miscellaneous appeal against an order dismissing objections to an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996. Relying on the Supreme Court in State of Bihar, the Court held Section 34(5) directory and remanded the matter for adjudication on merits with a six-month timeline.

What did the court decide?

Appeal allowed. Impugned order quashed. Matter remanded to the Additional District Judge to determine objections under Section 34 on merits within six months of receipt of this certified copy of the o

Chief Manager and Managing Director Vs M/S Baba Ramdev Foundry… — Arbitration | Rajasthan HC (2023)

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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S.B. Civil Miscellaneous Appeal No. 2241/2019

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Chief Manager And Managing Director, Rajasthan Industries Development And Investment Corporation Limited (Riico) Udyog Bhawan, Tilak Marg, Jaipur

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Regional Manager, Rajasthan Industries Development And Investment Corporation Limited (Riico), Unit, Jaipur (Rural) Baisgodam Industrial Estate, Jaipur

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----Appellants

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Versus

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M/s Baba Ramdev Foundry Through Properietor Smt. Shanti Devi W/o Kanahiya Lal, B/c Bunkar, Resident Of Plot No. F-42, Riico Industrial Area, Shahpura, Jaipur

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Jai Prakash S/o Pratap Singh, B/c Jat, Resident Of Gothra, Tehsil Chirawa, Dist. Jhunjhunu (Rajasthan)

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----Respondents

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For Appellant(s)	: Ms. Sheetal Mirdha, Adv., Mr. Prateek Singh,Adv.
For Respondent(s)	: Mr. Ashok Kumar Kasera, Adv.,
	Mr. Sparsh Bansal, Adv. On behalf of
	Mr. YellopSingh,Adv.

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HON'BLE MR. JUSTICE NARENDRA SINGH DHADDHA Order

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10/01/2023

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By way of this civil miscellaneous appeal, appellants wants to challenge the order dated 26.03.2019, whereby the learned Additional District Judge No.14, Jaipur Metropolitan has dismissed the appellants’ objection filed under Section 34 of the Arbitration & Conciliation Act, 1996 (hereafter ‘the Act of 1996’) seeking annulment of the award dated 13.04.2016.

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Learned counsel for the appellants submits that order passed by the court below dismissing the objections to the award dated 13.04.2016 filed within limitation for non compliance with Section 34(5) of the Act of 1996 prior thereto and hold Section 34(5) as

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(2 of 3)

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[CMA-2241/2019]

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mandatory is apparently erroneous and unsustainable in view of the judgment of the Apex Court in the case of The State of Bihar

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& Ors. Vs. Bihar Rajya Bhumi Vikas Bank Samiti; Civil

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Appeal No.7314/2018 decided on 30.07.2018 holding that Section 34(5) of the Act of 1996 was only directory and objections to award could not be dismissed only for failure to comply therewith prior to the filing of objections. So, the appeal filed by the appellant be allowed and matter be remanded back to the court below for adjudication on merits.

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Learned counsel for the respondents has not opposed the arguments advanced by learned counsel for the appellants and submitted that direction be given to the trial court for deciding the objections within a time frame.

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I have considered the arguments advanced by learned counsel for the appellants as well as learned counsel for the respondents.

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I am of the considered view that in view of the law clearly enunciated by the Hon’ble Supreme Court in the case of The State of Bihar (supra) the impugned order cannot be sustained and this appeal deserves to be allowed. It is so.

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The matter is remanded back to the court below for determination of the objections filed by the appellants under Section 34 of the Act of 1996 to the award dated 13.04.2016 on their merits.

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The trial court is directed to decide the said objection as early as possible and if possible with six months from the date of

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(3 of 3)

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[CMA-2241/2019]

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receipt of certified copy of this order.

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(NARENDRA SINGH DHADDHA),J

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Seema/70

Chief Manager and Managing Director v. M/S Baba Ramdev Foundry through Properietor Smt. Shanti Devi W/O Kanahiya Lal

Case brief

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Chief Manager and Managing Director v. M/S Baba Ramdev Foundry through Properietor Smt. Shanti Devi W/O Kanahiya Lal

Case brief

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What did the court decide?

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