Pallavi (Associate) 18 December 2014

Maintainability of arbitration award

Respected Forum

My case is that an Arbitration award was passed at Coimbatore and no appeal was preferred by the REspondents against the arbitration Award. Subsequently execution petition was filed before the Addl. District Judge, Rajahmundry, E.G..dt., Andhra PRadesh. But the learned returned the petitions on the ground that how the petition is maintainable as the arbitration award was passed at coimbatore. the officer says that the arbitration award has to be transmitted in due process of law as it is a decree. It is submitted that the Respondnets and their properties are within the Jurisdiction of Rajahmundry Court of East Godavari District. of Andhra pradesh.

1. whether the arbitration award has to be transmitted from coimbatore to Rajahmundry in due process of law.

kinldy advise me in this regard

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3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 19 December 2014

The Karnataka High Court has, in a recent order dismissing a Writ Petition (Chandrashekhar v. Tata Motor Finance Ltd & Others)[2], clarified that for the purpose of executing an arbitral award in a jurisdiction which is different from the place of arbitration, a transmission order of the court in whose jurisdiction the arbitral award was passed is not required.The Karnataka High Court through this landmark judgement has made it clear that the court which has the territorial jurisdiction to try the subject matter of a dispute has the jurisdiction to enforce the arbitral award arising out of the same dispute. The place where the arbitration award passed is of no importance. The High Courts of Delhi, Madras, Gujarat, Rajasthan, Punjab & Haryana and Allahabad have already taken a view that there is no requirement for transmission of arbitration awards for execution. Currently, only the High Court of Madhya Pradesh holds a contrary view that transmission of arbitral award is necessary for execution, if the place of arbitration is different from the place of execution.

T. Kalaiselvan, Advocate (Advocate) 24 December 2014

The EP should be filed at Coimbatore which inturn will be transferred to Rajamundhry.

kornigovind (Advocate) 28 January 2015

It is bring to your reference case that Transmission of Arbitration Awards and Execution Petition always a matter of concern ; and the reading of sec 36 of the Arbitration Act makes it confusing for many. Here is a positive ruling states NO NEED TO TRANSMIT. The below mentioined judgmnents referred by Hon'ble Madras High Court i.e.,

This

decision was followed by Madras High Court earlier in Kotak Mahindra Bank Ltd. v. Sivakama Sundari S. Narayana S.B.Murthy (MANU/TN/3588/2011). The Court examined in detail the matter and came to the conclusion that order of District Judge directing return of execution application was to be set aside.

High Court of Punjab and Haryana in Indusind Bank Ltd. v. M/s Bhullar Transport Company and another (MANU/PH/2896/2012) also agreed with the view of Delhi High Court (supra). In paragraph 11 of the judgment, High Court observes as under Arbitration and Conciliation Act for your persual,

Govind