Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | s. 9--Application for interim measures by court-Unregistered partnership firm in liquor trade-Application by one of the partners for appointment of receiver to take charge of business of the firm-Trial court dismissing the application on the ground that name of the applicant does not figure in the register of firms as partner of the firm-High Court allowed the application holding that s.69(3) of the Partnership Act is not attracted to an application u/s 9 of the Act-High Court further directed that the partners who were running the business would run the business as receivers till 31.12.2003 and from 1.1.2004 to 31.3.2004 the applicant and two other partners of his group would run the business as receivers-Held, order passed by court should fall within the meaning of expression 'an interim measure of protection' as distinguished from an all time of permanent protection-It is a serious matter to appoint a receiver on a running business-This is not a case of oppression of minority by majority-A better course would have been to allow the conduct of the business continuing in the hands of the persons who were doing so but at the same time issuing such directions and/or devising such arrangement as would protect and take care of the interest of those who are not actually running the business-Purpose of enacting s. 9 is to provide 'interim measures of protection- Though order of High Court appointing a receiver on the partnership business is maintained, the rest of the order is set aside-Directions given inter alia, for running the business by the group of partners who were running it prior to interim order of High Court under their control but as receivers, and for appointment of an official as observer- Interim order-Partnership Act, 1932-s.69(3). s. 9-Unregistered partnership firm-Application by one of the partners for directions to appoint receiver-Maintainability of-Held, Court u/s 9 is only formulating interim measures so as to protect the right under adjudication before the arbitral tribunal from being frustrated-Prima facie, the bar enacted by s.69 of Partnership Act does no/affect the maintainability of an application under s.9 of the Act-s. 69 of Partnership Act has no bearing on the right of a party to an arbitration clause to file an application under s. 9 of the Act.s. 9- "party"-Invoking s.9-An application u/s. 9 is not a suit-'Party' is defined in s. 2(1)(h) to mean a party to an arbitration agreement-So right conferred by s. 9 is on a party to an arbitration agreement-Right conferred B by s. 9 cannot be said to be one arising out of a contract-Filing of an application u/s. 9 by a party by virtue of its being a party to,an arbitration agreement is for securing a relief which the court has power to grant before, during or after arbitral proceedings by virtue of s.9 of the Act-The relief sought for in an application u/s. 9 is neither in a suit nor a right arising from a contract-Party invoking s. 9 may not have actually commenced arbitral proceedings but must be able to satisfy the court that the arbitral proceedings are actually contemplated or manifestly intended. |
Judge | Hon'ble Mr. Justice Ashok Bhan Honble Mr. Justice R.C. Lahoti |
Neutral Citation | 2004 INSC 29 |
Petitioner | Firm Ashok Traders And Anr. Etc. |
Respondent | Gurumukh Das Saluja And Ors. Etc. |
SCR | [2004] 1 S.C.R. 404 |
Judgement Date | 2004-01-09 |
Case Number | 132 |
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