TaxTMI 
TaxTMI 
2026 (9) TMI 1907
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....h, AOR ORDER 1. Heard. Leave Granted. 2. Short point of law that arises for our consideration in the present matter is "Whether the High Court, while exercising statutory appellate jurisdiction under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 against rejection of an application under Section 9 can by consent of the parties, remit the appellate proceedings to the subsequently constituted Arbitral Tribunal and direct the Tribunal to treat such proceedings as an application under Section 17 of the Act?" 3. Before adjudicating upon the said point, facts shorn of unnecessary details are noted herein below: 3.1. The Respondent Company was awarded a contract by the Appellant for the provision of Administrative an....
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....ich came to be dismissed by order dated 15.10.2025. 3.4. Being aggrieved by the said order, the Respondent filed Arbitration Appeal No. 35 of 2025 under Section 37 of the Act and also filed Commercial Arbitration Petition (ST) No. 35541 of 2025 under Section 11 of the Act seeking appointment of an Arbitrator. Thereafter, on 03.01.2026, the Appellants terminated the Work Order on the ground of unsatisfactory performance, which came to be stayed by the High Court by order dated 05.01.2026. By order dated 12.01.2026, the High Court, after hearing the parties, permitted the Appellants to file an affidavit in reply dealing with the contentions raised regarding the quality of workmanship and continued the status quo arrangement then obtaining ....
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....ator; their challenge was confined to the direction of the High Court remitting the proceedings instituted under Section 37 to the Arbitral Tribunal to be treated as an application under Section 17 of the Act. 5.2. It was contended that an order passed by the competent Court under Section 9 could be challenged only by way of a statutory appeal under Section 37(1)(b) and such appellate jurisdiction vested exclusively in the Court. Therefore, an Arbitral Tribunal could neither entertain nor adjudicate the issues pending in Section 37 appeal. 5.3. It is contended that powers exercised by a Court under Sections 9 and 37 were fundamentally distinct from the powers of an Arbitral Tribunal under Section 17. An Arbitral Tribunal, being a crea....
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.... the Arbitral Tribunal may not be set aside. 7. Having heard the Counsels appearing for the parties, we proceed to analyse the Point framed herein above. ANALYSIS 8. The appeal under Section 37 of the Arbitration and Conciliation Act, 1996 arose from the order passed under Section 9 rejecting the Respondent-Claimant's application for interim reliefs, which included, inter alia, a prayer for restraining the Appellants from cancelling, terminating or repudiating the contract/work order. During the pendency of the appeal under Section 37, the Appellants terminated the contract/work order on 03.01.2026. The effect and operation of the said termination were thereafter stayed by the High Court on 05.01.2026. In the connected proceedings ....