VIJAY SEKHRI Vs. TINNA OILS AND CHEMICALS

JUDGEMENT

(1.) These applications have been filed by ADM Interoceanic Limited, the respondent No. 2, for dismissal of the present appeals under Section 10F of the Companies Act, 1956 (hereinafter referred to as Companies Act, for short) filed by Vijay Sekhri and others. It is submitted that by the impugned orders dated 20th July, 2010 the Company Law Board (hereinafter referred to as CLB, for short) has allowed the applications under Section 45 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as Arbitration Act, for short) and these orders are not appealable under Section 50 of the Arbitration Act. Accordingly, the appeals under section 10F of the Companies Act are not maintainable, in view of the specific bar stipulated by Section 50 of the Companies Act.

(2.) The appellants have contested the applications. In the reply, reference is made to the pleas and contentions raised in the appeals on merits relating to challenge to the orders dated 20th July, 2010. It is submitted that all orders of CLB including an order wrongly referring the disputes to arbitration can be made subject matter of an appeal under Section 10F of the Companies Act. Section 50 of the Arbitration Act cannot control the scope and ambit of an appeal under Section 10F of the Companies Act. All orders of CLB are amiable and can be made subject matter of an appeal under Section 10F of Companies Act on questions of Law.

(3.) The present applications raise the issue of jurisdiction and scope of Section 50 of the Arbitration Act, Section 10F of the Companies Act and whether the impugned orders dated 20th July, 2010 passed by the CLB allowing the applications and referring the parties to arbitration can be assailed and challenged in an appeal under the said Section 10F of the Companies Act and whether Section 50 of the Arbitration Act bars/prohibits the present appeals.