Section 17 arbitral directions challengeable by appeal under section 37; misconceived modification application converted into appeal.

An arbitral direction treated prima facie as an order under section 17 of the Arbitration and Conciliation Act, 1996 is challengeable by appeal under section 37, not by an application for variation or modification in a disposed proceeding. A procedurally misconceived application in the earlier proceeding was therefore not maintainable in its original form, but it was converted into an appeal to avoid technical defeat of the remedy and to allow the matter to proceed in accordance with law. The party was permitted to file a supplementary affidavit as a stay application and a memorandum of appeal within the time granted.

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Issues: Whether an application made in a disposed of proceeding seeking variation or modification of an earlier order could be entertained, and whether the impugned arbitral direction was to be treated as one under section 17 of the Arbitration and Conciliation Act, 1996 so that the proper remedy lay in an appeal under section 37 of that Act.

Analysis: The arbitral direction was treated prima facie as an order made in exercise of powers under section 17 of the Arbitration and Conciliation Act, 1996. On that basis, the appropriate remedy was an appeal under section 37 of the Act, and not an application in a disposed of appeal for modification of the earlier order. At the same time, to avoid technical objections and shorten litigation, the application was treated as an appeal, with liberty to file a supplementary affidavit as a stay application and a memorandum of appeal within the time granted.

Conclusion: The application was not maintainable in its original form, but it was converted into an appeal for further proceeding in accordance with law.

Final Conclusion: The matter was disposed of by rejecting the application as such while preserving the petitioner's opportunity to pursue the remedy in appellate form.

Ratio Decidendi: Where an arbitral order is prima facie in exercise of section 17 powers, the proper challenge lies under section 37, and a procedurally misconceived application in a disposed proceeding may be treated as an appeal to avoid injustice and technical failure of remedy.

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