2019 (7) TMI 1748 - SC - Indian Laws

Supreme Court clarifies foreign award enforcement & jurisdiction, emphasizes High Court's territorial determination

The Supreme Court addressed the enforceability of a foreign award and the Delhi High Court's jurisdiction. It emphasized the need for the High Court to ... Enforceability of a foreign award - jurisdiction of the Delhi High Court to enforce the same - HELD THAT:- Firstly, the High Court is required to decide the issue about the territorial jurisdiction to enforce the award under Section 47 of the Act. In case the High Court comes to a conclusion that it has the jurisdiction to enforce the award, obviously the High Court has to proceed under Section 48 and at that stage, the requisite information in Form 16A has to be filed. Thus, we are only deferring the stage at which information under Form 16A is to be filed. We request the High Court to address the question of jurisdiction first. However, the impugned order passed by the High Court restraining the appellant from creating any third party interest or parting with the possession of Westin Hotel, Rajarhat, Kolkata is affirmed. The restraint order passed by the High Court shall continue till the decision is taken by the High Court - Appeal disposed off. Issues: Enforceability of foreign award, jurisdiction of the Delhi High Court, applicability of Section 47 and Section 48 of the Arbitration and Conciliation Act, 1996, filing of Form 16A affidavit, territorial jurisdiction to enforce the award, third party interest in property, modification of impugned order.In this judgment by the Supreme Court, the issue at hand pertains to the enforceability of a foreign award and the jurisdiction of the Delhi High Court in this matter. The High Court had directed the filing of an affidavit in Form 16A of Appendix E of the Code of Civil Procedure, which is necessary for the execution of the award under Section 48 of the Arbitration and Conciliation Act, 1996. The Supreme Court emphasized that the High Court must first determine its territorial jurisdiction to enforce the award under Section 47 of the Act before proceeding to Section 48. The impugned order restraining the appellant from dealing with the Westin Hotel property was upheld, but the requirement to file Form 16A was deferred pending the jurisdictional decision by the High Court.The Supreme Court clarified that the High Court needs to address the question of its jurisdiction to enforce the award before requiring the filing of Form 16A. If the High Court establishes its jurisdiction, then the process under Section 48 can proceed. The judgment affirms the High Court's order regarding the restraint on the appellant from creating third-party interests or disposing of the Westin Hotel property in Kolkata. The appeals were disposed of with this clarification and modification to the impugned order, with the restraint order remaining in effect until the High Court makes a final decision in the matter.