SANRACHNA (INDIA) INC Vs. A B HOTELS LTD

JUDGEMENT

(1.) FAO (OS) No. 310/2005:

(2.) At the outset, we will make it very clear that the discretion under Section 9 of the Arbitration and Conciliation Act, 1996 has to be exercised sparingly and cautiously. It is not in all cases that a Court has to pass an order while exercising jurisdiction under Section 9 of the Arbitration and Conciliation Act. The insertion of Arbitration and Conciliation Act, 1996 and its objective is to create an alternative dispute redressal mechanism. Therefore, at every stage, the interference by Court is not required. However, we may hasten to add that it does not mean that the Court does not have power in appropriate cases to issue interim orders in terms of what is postulated under Section 9 of the said Act. However, in the present case, we do not see reason to take a different view than that taken by the learned Single Judge, except with one direction that the arbitrator will decide the matter in accordance with law, without being influenced by the observations of the learned Single Judge which are to the following effect:

(3.) The aforesaid paragraph quoted by the learned Single Judge while not granting any interim relief is expunged from the said order. The Arbitrator will decide the same in accordance with law.