Court Confirms Appeal Maintainability Under Section 37 of Arbitration and Conciliation Act, 1996
In a significant ruling, the Andhra Pradesh High Court has upheld the maintainability of an appeal against an ad-interim order granting an interim injunction under Section 9 of the Arbitration and Conciliation Act, 1996. The case, Visakhapatnam Port Authority v. M/s. Vishwanadh Avenues India Private Limited, revolved around a challenge to an interim order issued by the Special Judge for Trial and Disposal of Commercial Disputes at Visakhapatnam.
The dispute began when the respondent, M/s. Vishwanadh Avenues, sought interim measures under Section 9 of the Arbitration Act, prompting the Special Judge to order the parties to maintain the status quo ante. This order, dated December 19, 2025, was subsequently challenged by the Visakhapatnam Port Authority, which argued that the appeal was maintainable under Section 37(1)(b) of the Arbitration Act and Section 13 of the Commercial Courts Act, 2015.
The High Court, led by Justices Sri Ravi Nath Tilhari and Sri Maheswara Rao Kuncheam, examined the pertinent legal provisions, including Section 37 of the Arbitration Act, which allows appeals against certain orders, and Order 43, Rule 1(r) of the Civil Procedure Code (CPC), which pertains to appeals against injunctions.
In their decision, the judges referenced previous rulings, including the Supreme Court's decision in A. Venkatasubbaiah Naidu v. S. Chellappan, to support their interpretation that appeals against ad-interim injunctions are indeed maintainable under the aforementioned legal provisions. The court also distinguished the case from a Meghalaya High Court judgment, which suggested that Section 37(1)(b) only allowed appeals against final orders.
Ultimately, the Andhra Pradesh High Court concluded that the appeal was maintainable, overruling the office's objection regarding its admissibility. The court's order emphasized the importance of allowing appeals against interim measures to ensure justice and legal recourse for aggrieved parties.
The next hearing in the case is scheduled for December 30, 2025, with the interim order remaining in effect until then. The court's decision underscores the judiciary's commitment to upholding the principles of arbitration law while providing clarity on the appeal ability of interim orders in arbitration proceedings.
Bottom Line:
Appeal maintainability under Arbitration and Conciliation Act, 1996 and Commercial Courts Act, 2015 - Ad-interim order granting interim injunction under Section 9 of the Arbitration Act is appealable under Section 37(1)(b) of the Act, 1996 and Order 43, Rule 1 (r) CPC.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 9, 37(1)(b); Commercial Courts Act, 2015 Section 13; Civil Procedure Code, 1908 Order 43, Rule 1(r).
