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        2011 (10) TMI 783 - HC - Indian Laws

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        Arbitration award enforcement proceedings fall under the arbitration statute, and Letters Patent appeals are impliedly excluded. Section 36 enforcement of an arbitral award was treated as a proceeding under the Arbitration and Conciliation Act, 1996, not as a proceeding under the ...
                      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.

                          Arbitration award enforcement proceedings fall under the arbitration statute, and Letters Patent appeals are impliedly excluded.

                          Section 36 enforcement of an arbitral award was treated as a proceeding under the Arbitration and Conciliation Act, 1996, not as a proceeding under the Code of Civil Procedure, because the "as if it were a decree" fiction was confined to the mode of enforcement. The Court held that the 1996 Act is a self-contained arbitration code and that its limited appeal structure under section 37 impliedly excludes clause 15 of the Bombay Letters Patent, so no Letters Patent Appeal lies. The Supreme Court's decision in Fuerst Day Lawson was held to govern maintainability for domestic awards as well, rejecting any Part I and Part II distinction for this purpose.




                          Issues: (i) Whether proceedings for enforcement of an arbitral award under section 36 of the Arbitration and Conciliation Act, 1996 are proceedings under the Code of Civil Procedure, 1908; (ii) whether clause 15 of the Letters Patent of the High Court at Bombay applies to such proceedings or is impliedly excluded by the Arbitration and Conciliation Act, 1996 and the Code of Civil Procedure, 1908; (iii) whether the Supreme Court's decision in Fuerst Day Lawson governs maintainability of a Letters Patent Appeal against an order passed in proceedings arising from a domestic award under Part I of the Arbitration and Conciliation Act, 1996.

                          Issue (i): Whether proceedings for enforcement of an arbitral award under section 36 of the Arbitration and Conciliation Act, 1996 are proceedings under the Code of Civil Procedure, 1908.

                          Analysis: Section 36 makes an award enforceable under the Code only "in the same manner as if it were a decree of the court". That legal fiction was treated as limited to the mode of enforcement and not as converting the proceeding itself into one under the Code. The structure of the 1996 Act, including the exclusion of civil court procedure in arbitral matters and the absence of a provision analogous to section 41 of the Arbitration Act, 1940, supported the conclusion that the enforcement proceeding remains one under the special arbitration statute. The Court also relied on the Supreme Court's interpretation that the expression "as if" creates only a limited fiction for enforcement.

                          Conclusion: The proceedings were held to be proceedings under the Arbitration and Conciliation Act, 1996 and not proceedings under the Code of Civil Procedure, 1908.

                          Issue (ii): Whether clause 15 of the Letters Patent of the High Court at Bombay applies to such proceedings or is impliedly excluded by the Arbitration and Conciliation Act, 1996 and the Code of Civil Procedure, 1908.

                          Analysis: The Court held that the 1996 Act is a special, self-contained and exhaustive code governing arbitration, enforcement and appeals. Since section 37 provides appeals only from specified orders and from no others, the legislative scheme evinced an intention to restrict appellate review. The Court also held that the earlier deletion of arbitration-related provisions from the Code did not preserve an independent intra-court appeal in this field. The special statutory scheme, read with the limited appeal structure, impliedly excluded resort to clause 15 of the Letters Patent.

                          Conclusion: Clause 15 of the Letters Patent was held to be impliedly excluded, and no Letters Patent Appeal lay.

                          Issue (iii): Whether the Supreme Court's decision in Fuerst Day Lawson governs maintainability of a Letters Patent Appeal against an order passed in proceedings arising from a domestic award under Part I of the Arbitration and Conciliation Act, 1996.

                          Analysis: The Court treated the reasoning in Fuerst Day Lawson as not confined to foreign awards under Part II. It held that the Supreme Court's analysis of the Act as a complete code, and its conclusion that the appellate scheme excludes Letters Patent jurisdiction, applied with equal force to Part I proceedings. The distinction sought to be drawn between Part I and Part II was rejected for the purpose of maintainability.

                          Conclusion: Fuerst Day Lawson was held to be binding on the maintainability question and to bar the appeals.

                          Final Conclusion: The appeals were held not maintainable because the enforcement proceedings fell within the arbitration statute, whose appellate scheme excluded intra-court appeal under the Letters Patent.

                          Ratio Decidendi: Where a special arbitration statute creates a self-contained appellate scheme and limits appeals to specified orders, the general intra-court appellate jurisdiction under the Letters Patent stands impliedly excluded for orders passed in proceedings under that statute.


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