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Manohar Lal vs. Umesh Anand and others

(Whether an arbitrator can be termed to a “court ” within the meaning of Section 195 of the Criminal Procedure Code and whether the provisions of Section 340 CrPC be made applicable to proceedings before an Arbitrator)
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Case Reference :
Criminal Appeal No.466 of 2001, decided on 9/4/2002

Judges :
Justice A.P.Misra and Justice Umesh C.Banerjee

Parties :
Manohar Lal (Appellant) Vs. Vinesh Anand and others (Respondents)

Question of Law :

Whether an Arbitrator can be termed to be a “court” within the meaning of Section 195 of the Criminal Procedure Code and whether the provisions of Section 340 CrPC be made applicable to proceedings before an Arbitrator.
 

Gist of the Case:

The Supreme Court observed that the body of Section 195(1)(b) of the Criminal Procedure Code refers to the expression “court” and the same stands explained in sub-section (3).

The relevant portions of Section 195 of the Code of Criminal Procedure are reproduced hereunder, for ready reference:

“195. Prosecution for contempt of lawful authority of public servants, for offences against public justice and for offences relating to documents given in evidence – (1) No court shall take cognizance-

 
(b)(i) of any offence punishable under any of the following sections of the Indian Penal Code (45 of 1860), namely, Sections 193 to 196 (both inclusive), 199, 200, 205 to 211 (both inclusive) and 228, when such offence is alleged to have been committed in, or in relation to, any proceeding in any court, or

(ii) of any offence described in Section 463, or punishable under Section 471, Section 475 or Section 476 of the said Code, when such offence is alleged to have been committed in respect of a document produced or given in evidence in a proceeding in any court, or
(iii) of any criminal conspiracy to commit, or attempt to commit, or the abetment of, any offence specified in sub-clause (i) or sub-clause (ii),
except on the complaint in writing of that court, or of some other court to which that court is subordinate.
(2) * * *
(3) In clause (b) of sub-section (1), the term ‘court’ means a civil, revenue or criminal court, and includes a tribunal constituted by or under a Central, Provincial or State Act, if declared by that Act to be a court for the purposes of this section.”

The clear language of Section 195(3) of the Code of Criminal Procedure unmistakably depicts the restrictive intent of the legislature and if the intent was otherwise to include an Arbitral Tribunal within the fold of Section 195(3) of the Code, that is to say, if the legislature wanted to confer such a status there was no difficulty as such in incorporating thereunder a provision as is contained in the Debt Recovery Act (vide Section 22); Income Tax Act (vide Section 136); Motor Vehicles Act [vide Section 169(2)]; Administrative Tribunals Act [vide Section 22(3)]; Consumer Protection Act; MRTP Act; and Companies Act etc. etc, since these statutes have definitely included and declared the Tribunal being ascribed to be a court within the meaning of Section 195 of the Criminal Procedure Code. The inclusion of explanatory provision by way of sub-section (3) makes the situation abundantly clear.

The Supreme Court in Baliram Waman Hiray(Dr.) Vs. Justice B.Lentin had taken into consideration the entire judicial precedent available till the date of the judgement and came to a conclusion upon reliance of the Madhya Pradesh High Court judgement in Puhupram v. State of M.P. that the same lays down the correct law. The Supreme Court Court observed in that case:

“36….The least that is required of a court is the capacity to deliver a ‘definitive judgement’, and merely because the procedure adopted by it is of a legal character and it has power to administer an oath will not impart to it the status of a court. That being so, it must be held that a Commission of Enquiry appointed by the appropriate Government under Section 3(1) of the Commissions of Inquiry Act is not a court for the purposes of Section 195 of the Code.”

The learned Judges of the Supreme Court observed in this case that they agree with the view expressed by the Supreme Court in Baliram case with regard to the scope and effect of Section 195(3) of the Criminal Procedure Code. Therefore, the law laid down by the Bench decision of the Calcutta High Court in Sailaja Kanta Mitra Vs. State of West Bengal(holding that Arbitrator under the Defence of India Act, 1939 and Civil Procedure Code, 1908 is a court of civil jurisdiction)cannot be said to be good law and stands overruled. The Supreme Court held that the Arbitrator cannot be termed to be a court within the meaning of Section 195 of the Criminal Procedure Code and as such the question of applicability of Section 340 CrPC does not and cannot arise. The appeal was dismissed.

 

Citation :
(2001) 5 SCC 407

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LIST OF SUPREME COURT CASES RELATING TO ARBITRATION AND CONCILIATION ACT, 1996 ----- Click Here