Notice-stage arbitration order on jurisdiction and arbitrability not disturbed; ownership investigation left for later consideration.

A notice-stage order under Section 45 of the Arbitration and Conciliation Act, 1996, directing the jurisdiction and arbitrability questions to be heard first, was treated as not ordinarily warranting appellate interference. The existing interim arrangement in the connected company-petition proceedings was ordered to continue during pendency of the petition under Sections 241-242 of the Companies Act, 2013. The request for investigation into company ownership was not decided in these appeals; although Section 216 of the Companies Act, 2013 was noted, the issue was left for consideration at the appropriate stage in the pending interlocutory applications before the Tribunal.

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Issues: Whether the order issuing notice on the application under Section 45 of the Arbitration and Conciliation Act, 1996 called for interference, and whether a direction for investigation into the ownership of the company could be considered at this stage.

Analysis: The appeal arising from the Section 45 order was confined to a notice stage order. The Tribunal's course of first hearing the application on jurisdiction and arbitrability was found to be appropriate, and no ground was made out for appellate interference. The existing interim arrangement already granted in the connected company-petition proceedings was directed to continue during pendency of the petition under Sections 241-242 of the Companies Act, 2013. As to investigation of ownership, the statutory power under Section 216 of the Companies Act, 2013 was noted, but the question whether such an investigation should be ordered was not decided in these appeals and was left to be considered by the Tribunal at the appropriate stage in the pending interlocutory applications.

Conclusion: The challenge to the notice order under Section 45 failed, and the request for investigation was left open for decision before the Tribunal in the pending applications.

Final Conclusion: The appeals were disposed of without disturbing the notice order, while preserving the existing interim protections and leaving the investigation question for future consideration before the Tribunal.

Ratio Decidendi: A notice-stage order directing parties to have the Section 45 question of jurisdiction and arbitrability decided first is not ordinarily liable to interference in appeal, and a request for investigation into ownership may be considered only when the statutory prerequisites are taken up in the pending proceedings.

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