In a significant ruling, the Gauhati High Court reaffirms that appeals under the Arbitration and Conciliation Act must be directed to Commercial Appellate Courts as per the Commercial Courts Act.
In a landmark decision, the Gauhati High Court, presided over by Justice Mridul Kumar Kalita, dismissed an appeal filed by Lokesh Anand Singhal and another against Pride Realty and others. The appeal was made under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996, challenging an order by the Civil Judge (Senior Division) No. 1, Kamrup(M), Guwahati, which had allowed an application under Section 9 of the same Act.
The central issue in the case was the jurisdiction of the appellate body for orders passed by designated Commercial Courts below the level of District Judge. The High Court ruled that such appeals must be filed before the Commercial Appellate Court, as per the Commercial Courts Act, 2015, specifically referring to the provisions contained in Sections 3(3), 3A, and 13(1) of the Act.
The case involved a commercial dispute regarding a partnership agreement and significant financial implications, as the appellants alleged that a respondent had misappropriated Rs. 35 crore. The dispute was classified under the commercial disputes category per Section 2(c) of the Commercial Courts Act, 2015.
Justice Kalita emphasized the precedence of the Commercial Courts Act, 2015, over the Arbitration and Conciliation Act, 1996, citing the Supreme Court's ruling in the case of Jaycee Housing (Pvt.) Ltd. v. Registrar (General) Orissa High Court, Cuttack. The Supreme Court had highlighted that the Commercial Courts Act, being enacted later, holds an overriding effect over earlier laws.
The ruling reiterated the necessity for appeals against decisions from designated Commercial Courts to be directed to Commercial Appellate Courts, which, in this instance, is the Court of District Judge, Kamrup(M). This decision aligns with the objective of the Commercial Courts Act to ensure the swift resolution of commercial disputes, including those arising from arbitration.
The High Court's dismissal of the appeal for lack of jurisdiction serves as a critical reminder of the legislative hierarchy and the specific jurisdictions of commercial and arbitration-related disputes. The appellants have been advised to seek recourse in the appropriate Commercial Appellate Court.
Bottom Line:
Arbitration and Conciliation Act, 1996 - Appeals under Section 37(1)(b) against orders passed by designated Commercial Courts below the level of District Judge must be filed before the Commercial Appellate Court as per the Commercial Courts Act, 2015.
Statutory provision(s): Arbitration and Conciliation Act, 1996 - Sections 2(e)(1), 9, 37(1)(b); Commercial Courts Act, 2015 - Sections 2(1)(c)(xv), 3(3), 3A, 10(3), 13(1)
Lokesh Anand Singhal v. Pride Realty, (Gauhati) : Law Finder Doc id # 2884126
