Arbitration reference refusal by NCLT is not appealable under Companies Act forum provisions.

An order of the NCLT refusing reference to arbitration while acting as a judicial authority under the Arbitration and Conciliation Act, 1996 is not appealable under Section 421 of the Companies Act, 2013. The appellate remedy under Section 421 is confined to orders passed by the Tribunal in its statutory capacity under the Companies Act, whereas a refusal to refer disputes to arbitration must be challenged under the forum and procedure provided by the arbitration law. The proceeding therefore failed on maintainability for want of proper forum, leaving the aggrieved party to pursue the remedy available under the Arbitration and Conciliation Act, 1996.

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Issues: Whether an appeal under Section 421 of the Companies Act, 2013 lies against an order of the National Company Law Tribunal passed in its capacity as a judicial authority under Section 45 of the Arbitration and Conciliation Act, 1996 refusing reference to arbitration.

Analysis: The order refusing reference to arbitration was passed by the Tribunal while acting as a judicial authority under the Arbitration and Conciliation Act, 1996, not as a Tribunal exercising its appellate jurisdiction under the Companies Act, 2013. The appellate forum under Section 421 of the Companies Act, 2013 is confined to orders passed by the Tribunal in its statutory capacity under that Act. The order relied on earlier reasoning holding that such a refusal order is appealable only before the forum authorised under the arbitration law, and not under Section 421. The existence of a remedy before the appropriate court authorised by Section 50 of the Arbitration and Conciliation Act, 1996 was also noted.

Conclusion: The appeal under Section 421 of the Companies Act, 2013 was not maintainable, and the issue was answered against the appellant.

Final Conclusion: The appellate proceeding failed on the question of forum and was disposed of without examining the merits of the dispute, leaving the party free to approach the competent court under the arbitration law.

Ratio Decidendi: An order passed by the Tribunal in the capacity of a judicial authority under the arbitration statute is appealable only in the manner provided by that statute, and not under the general appellate provision governing Tribunal orders under the Companies Act.

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