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Issues: Whether, after constitution of the arbitral tribunal and commencement of arbitral proceedings, the Court could still entertain and grant interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 in a pending application filed before the Arbitration and Conciliation (Amendment) Act, 2015 came into force.
Analysis: Section 26 of the Amendment Act was construed as applying to arbitral proceedings commenced under Section 21 of the 1996 Act and not to court proceedings pending under Section 9. The expression "entertain" in Section 9(3) was held to mean consideration on merits, so the prohibition operated even where the application had been instituted earlier. The widening of Section 17 was treated as procedural and clarificatory, and the Court held that once the tribunal was constituted, interim relief ordinarily had to be sought before the tribunal unless the Section 17 remedy would be inefficacious. The Court found no such exceptional circumstance on the facts.
Conclusion: The Court's power to grant interim relief under Section 9 stood curtailed after constitution of the arbitral tribunal, and the appeal was not entitled to interference on merits.
Final Conclusion: The impugned order refusing Section 9 relief was sustained, while limited interim protection by way of status quo was directed for a short period to enable recourse to Section 17 proceedings.
Ratio Decidendi: After constitution of the arbitral tribunal, a court cannot entertain a Section 9 application unless the applicant shows that the remedy under Section 17 would not be efficacious, and this restriction applies to pending court proceedings because it is procedural in nature.