Section 9 of arbitration act
sridhar pasumarthy
(Querist) 17 January 2013
This query is : Resolved
Respected Experts,
A private finance company granted loan to an individual for purchase of a heavy vehicle. In the loan agreement, there was arbitration clause. As the borrower committed default in payment of monthly instalments,finance company is intending to initiate arbitration proceedings.
My queries are :-
1. Can a petition under Section 9 of Arbitration Act be moved before District Judge's court seeking interim attachment of an immovable property of the borrower for securing the recovery of the award amount that may be passed by Arbitrator in future?
2. If so, does an interim application for the same relief pending disposal of the main Section 9 petition is maintainable?
Pls answer my queries with citations, if any.
I also request you to please provide a format petition. It's very urgent.
Thanks in advance.
Devajyoti Barman
(Expert) 17 January 2013
1. Interim relief in the nature of injunction can be prayed for but no interim attachment.
2. Does not arise.
Raj Kumar Makkad
(Expert) 18 January 2013
No format petitions are readily available with the experts as the facts of each case are different. So far your both queries are concerned, I disagree with the opinion of Barman.
One can approach the Court for interim attachment as per section 9 which is re-produced as under:
9. Interim measures etc. by Court. A party may, before, or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court-
(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of die following matters, namely:-
(a) the preservation, interim custody or sale of any goods which are the subject- matter of the arbitration agreement;
(b) securing the amount in dispute in the arbitration;
(c) the detention, preservation or inspection of any property or thing which is die subject- matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any part or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it. CHAP Composition of arbitral tribunal CHAPTER III Composition of arbitral tribunal
