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Application For Enforcement of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 and - or Section 34 Has Been Filed - Reiterates Telangana High Court
Application For Enforcement of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 and - or Section 34 Has Been Filed - Reiterates Telangana High Court
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https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 1/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
The Telangana High Court has reiterated that in view of Section 42 of the Arbitration
and Conciliation Act, 1996 (A&C Act), only the Court where an application under
Section 9 and/or Section 34 has been filed would have the jurisdiction to entertain an
The Bench, consisting of Justices P. Naveen Rao and Sambasivarao Naidu, held that
Section 42 of the A&C Act opens with a non-obstante clause and, therefore, even
the A&C Act would cover within its ambit all provisions dealing with execution of an
award.
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23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
The petitioner M/s. India Media Services Private Limited and the respondent M/s.
disputes arose between the parties, the petitioner invoked the arbitration clause. The
respondent filed an application under Section 9 of the A&C Act for interim measures
before the Calcutta High Court. After an arbitral award was passed in favour of the
respondent, the petitioner filed an application under Section 34 of the A&C challenging
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The respondent/award holder filed an Execution Petition before the Civil Court of
Hyderabad, which was allowed. Against this, the petitioner filed a Revision Petition
The petitioner M/s. India Media Services Private Limited submitted before the
Telangana High Court that as per the provisions of Section 42 of the A&C Act, only the
Principal District Court or the High Court, where applications under Sections 9 and/or
Section 34 of the A&C Act have been filed, have the jurisdiction to deal with the
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 3/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
applications that are subsequently filed after the conclusion of the arbitral
proceedings.
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Thus, the petitioner averred that the Civil Court of Hyderabad had no jurisdiction to
entertain the Execution Petition since the applications under Section 9 and Section 34
had been filed in the State of West Bengal. Therefore, the petitioner contended that the
order passed by the Executing Court in Hyderabad was illegal and void ab initio.
The respondent M/s. SBPL Infrastructure Limited submitted that once an arbitral
award is passed by the Arbitrator, the award could be enforced at any place in the
country as a decree of the Civil Court, and more particularly in the place where the
concerned property was located. The respondent averred that since the concerned
property was located in Hyderabad, the Civil Court of Hyderabad had the jurisdiction to
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Section 42 of the A&C Act provides that notwithstanding any other provision in Part-I
of the A&C Act and any other law, where with respect to an arbitration agreement any
application has been made in a Court, that Court alone shall have jurisdiction over the
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 4/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
arbitral proceedings, and all subsequent applications arising out of that agreement
and the arbitral proceedings shall be made in that Court and in no other Court.
The Court observed that Section 42 of the A&C Act opens with a non-obstante clause.
Therefore, the Court held that even though an award is treated as a 'decree in fiction'
by a Civil Court, Section 42 of the A&C Act would cover within its ambit all provisions
Thus, the Court held that in view of Section 42 of the A&C Act, only the Court where an
application under Section 9 and/or Section 34 was filed would have the jurisdiction to
The Court observed that the Supreme Court in the case of State of West Bengal versus
Associated Contractors (2014) had held that the expression "with respect to an
applications, whether made before or during the arbitral proceedings or after the
arbitral award was passed. The Court noted that the Supreme Court had ruled that
applications under Section 9 of the A&C Act for interim measures and applications
under Section 34 to set aside arbitral award, being applications made to a Court, would
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 5/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
Thus, the High Court held that Section 42 of the A&C Act is also applicable post
arbitral award and, therefore, an application for execution of the arbitral award has to
be filed in the Court where an application under Section 9 and/or Section 34 was
earlier filed.
The Court observed that the respondent, in support of its contention that a petition for
enforcement of an arbitral award can be filed anywhere in the country like a decree of
the Civil Court, had relied on the decision of the Supreme Court in Cheran Properties
Limited versus Kasturi and Sons Limited (2018), wherein the Supreme Court had
rejected the application of Section 42 of the A&C Act. The respondent averred that
since the decision in Cheran Properties Limited (2018) was rendered by the Supreme
Court after the judgment in Associated Contractors (2014), therefore, the decision in
Cheran Properties Limited (2018) shall prevail over the decision in Associated
Contractors (2014).
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 6/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
The Court noted that the Supreme Court in Cheran Properties Limited (2018) was
dealing with an arbitral award which had held that the award holder was entitled to
certain share certificates. The Supreme Court had ruled that to effectuate the transfer
of share certificates, the award holder was entitled to seek rectification of the register
The Supreme Court had held that since the Companies Act was a special enactment,
which contained provisions for rectification of the register of a company, the NCLT
register of the company. Thus, the Supreme Court had ruled that Section 42 of the A&C
The High Court held that there is no conflict in the decision rendered by the Supreme
Court in Associated Contractors (2014) and Cheran Properties Limited (2018), since
they deal with different contingencies post the passing of the arbitral award.
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 7/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
The High Court ruled that the judgment of the Supreme Court in Cheran Properties
Limited (2018) did not overrule the decision of the Supreme Court in Associated
Contractors (2014) and that the law as laid down in Associated Contractors (2014) is
still applicable.
The High Court observed that the applications under Section 9 and Section 34 of the
A&C Act had been filed before the Calcutta High Court. Thus, the High Court held that,
in view of the decision in Associated Contractors (2014) and the provisions of Section
42 of the A&C Act, the Calcutta High Court alone had the jurisdiction to entertain an
Thus, the Court held that the Civil Court in Hyderabad had no jurisdiction to entertain
the Execution Petition for enforcement of the arbitral award under Section 36 of the
Case Title: M/s. India Media Services Private Limited versus M/s. SBPL
Infrastructure Limited
Counsel for the Petitioner: Mr. M.S. Prasad, learned senior counsel appearing for Ms.
A. Satyasri
TAGS TELANGANA HIGH COURT ARBITRATION AND CONCILIATION ACT ARBITRAL AWARD
https://www.livelaw.in/news-updates/telangana-high-court-arbitration-and-conciliation-act-arbitral-award-section-42-of-the-ac-act-201859 8/19
23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
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23/06/2022, 21:31 Application For Enforcement Of Arbitral Award Would Lie Only Before The Court Where Application Under Section 9 And/ Or Section 3…
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