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        Companies Law

        2012 (12) TMI 1138 - HC - Companies Law

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        Ad-interim relief under Section 9 may still be considered while maintainability is pending, without deciding the merits. Where maintainability and non-arbitrability were still undecided, the court noted that interim assistance under Section 9 of the Arbitration and ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Ad-interim relief under Section 9 may still be considered while maintainability is pending, without deciding the merits.

                              Where maintainability and non-arbitrability were still undecided, the court noted that interim assistance under Section 9 of the Arbitration and Conciliation Act may ordinarily not arise if the subject matter is non-arbitrable, but a court that has deferred decision on jurisdiction or maintainability is not automatically barred from granting an ad-interim order until that issue is decided. The appeal was disposed of with an observation that the learned Single Judge should immediately consider whether ad-interim relief was warranted pending adjudication of maintainability, or decide maintainability first. No ruling was given on the merits or on arbitrability.




                              Issues: Whether the Court could grant or consider an ad-interim direction under Section 9 of the Arbitration and Conciliation Act, 1996 pending decision on the maintainability of the petition and the non-arbitrability objection.

                              Analysis: The Court noted that if the subject matter were non-arbitrable, interim assistance under Section 9 would ordinarily not arise. It also recognized the settled principle that where a court defers decision on its jurisdiction or maintainability, it is not necessarily denuded of power to pass an ad-interim order until that question is decided. Since this aspect had not been effectively brought to the notice of the learned Single Judge, the Court considered it appropriate to dispose of the appeal with an observation that the learned Single Judge should immediately consider whether an ad-interim direction was warranted pending adjudication of maintainability, or alternatively decide the maintainability question itself. No direction on merits was given.

                              Conclusion: The appellant obtained a direction for immediate consideration of its request for ad-interim relief or for decision on maintainability, and the appeal was disposed of without adjudicating the substantive controversy.

                              Final Conclusion: The order preserved the appellant's opportunity to seek urgent interim consideration before the learned Single Judge while leaving the merits and maintainability issue open for decision below.

                              Ratio Decidendi: A court that has deferred decision on its jurisdiction or maintainability is not automatically barred from granting an ad-interim order pending that determination.


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                              ActsIncome Tax
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