VISHAL RETAIL LTD Vs. KATARIA AUTOMOBILES LTD

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated 27.01.2010 passed by the learned Single Judge in First Appeal No. 4288 of 2009. (Reported in AIR 2010 (NOC) 472)

(2.) Between the appellant herein and the respondent, certain disputes arose out of the contractual relations. The respondents, therefore, filed Civil Misc. Application No.990 of 2009 under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as Arbitration Act, 1996 for short). In this application, the respondents herein had prayed for several interim orders pending commencement and conclusion of arbitration proceedings which respondents proposed to take out against the present appellants. Respondents herein prayed inter alia for restraining the present appellant from parting with possession of some of its properties and also for providing security for a sum of rupees six crores. The appellant herein upon service of the notice entered appearance and contested the application. After hearing the parties, Learned Judge of City Civil Court, Ahmedabad by order dated 16th October 2009 allowed the Civil Misc. Application in favour of the respondents herein partly. Operative portion of the said order reads as under. ORDER Application is partly allowed. Interim relief granted earlier is confirmed. (1) The respondent shall deposit before this Court an outstanding amount up to 31.12.2008 in terms of the two agreements calculated at the rate of Rs.18,63,812/- (Rupees Eighteen Lacs Sixty Three Thousand Eight Hundred Twelve only) per month from 1st August, 2008. This shall be subject to final outcome in the arbitral proceedings. (2) The respondent shall deposit a sum of Rs. 10,21,000/- (Rupees Ten Lacs Twenty One Thousand only ) every month in this Court effective from 01.01.2009 and upon such deposit, the applicant shall be entitled to withdraw the same. (3) The respondent shall execute solvent security in the sum of Rs.2,50,00,000/- (Rupees Two Crore Fifty Lacs only) within a period 2 weeks from today. (4) The applicant shall initiate the arbitration proceedings by giving notice to the respondent within a period of 4 weeks from today. Application stand disposed of accordingly. Pronounced in the open Court today on this 16th day of October, 2009. Said order was challenged by the present appellant before the learned Single Judge in the First Appeal No.4288 of 2009 under Section 37(1) of the Arbitration Act, 1996. Learned Single Judge, however, by his impugned judgment and order dated 27.01.2010 (reported in AIR 2010 (NOC) 472) dismissed the appeal. The present Letters Patent Appeal is, therefore, filed by the appellant.

(3.) At the outset, the short legal question confronted us was with respect to the maintainability of the present appeal filed under Clause 15 of the Letters Patent. Counsel for the appellant submitted that the appeal is maintainable since there is no bar against such appeal under the Arbitration Act, 1996 and introduction of Section 100-A of the Code of Civil Procedure would not bar a Letters Patent Appeal against a judgment by the learned Single Judge rendered in First Appeal arising out of the proceedings under the Arbitration Act, 1996.