KOTAK SECURITIES Vs. K.V.JANARDHANA PAI

JUDGEMENT

(1.) The limited challenge in this appeal is to a part of the order impugned passed on a petition under Sec. 34 of the Arbitration and Conciliation Act, 1996 by which certain directions have been issued to the National Stock Exchange for reconstituting an arbitral tribunal and for a further decision on the counter-claim that had been carried to the reference by the first respondent herein.

(2.) The appellant refers to a judgment reported at (2018) 11 SCC 328 (Kinnari Mullick vs. Ghanshyam Das Damani) and to the reliance therein on a judgment of this court reported at (2009) 1 MLJ 199 (M.M.T.C. vs. Vicnivass Agency).

(3.) In Kinnari Mullick, an arbitral award was set aside merely on the ground that it did not contain any reasons in support thereof. In the intra-court appeal, a Division Bench of the Calcutta High Court upheld the order but remanded the matter before the arbitral tribunal for giving reasons and, if necessary, hearing the matter further. It was the modification made by the Division Bench which was carried before the Supreme Court. The Supreme Court referred to Sec. 34(4) of the Act and observed that there was no power vested in the arbitration court to remand the matter. The Supreme Court accepted the view expressed by this court in Vicnivass Agency and held that when an award had been challenged but not set aside, the court could adjourn the proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of the arbitral tribunal would eliminate the ground for setting aside the arbitral award; but such procedure could be resorted to by the court only upon a request in such regard by a party to the proceedings.