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ITI Ltd. vs. Siemens Public Communications Network Ltd

( In terms of Section 37(3) there is no provision of second appeal against an order passed under Section 37. Whether a revision petition under Section 115 of the Civil Procedure Code lies to the High Court against an order made by a civil court in an appeal filed under Section 37(2)(b))
.

Case Reference :
Civil Appeal No.3620 of 2002 decided on May 20, 2002.

Judges :
Justice N.Santosh Hegde and Justice D.M.Dharmadhikari

Parties :

I.T.I. Ltd.(Appellant) Vs. Siemens Public Communications Network Ltd.(Respondent)

Question of Law :

The principal question before the Supreme Court was whether a revision petition under Section 115 of the Civil Procedure Code(for short, “CPC”) lies to the High Court as against an order made by a civil court in an appeal filed under Section 37(2)(b) of the Act of 1996, especially when a second appeal is statutorily barred under the Act of 1996 and when CPC is specifically made not applicable to proceedings under the Act of 1996.

Gist of the Case:

An appeal was filed before the X Additional City Civil Judge, Bangalore against an interim order made by the arbitral tribunal under Section 37(2)(b) of the Act of 1996 and it was dismissed. The learned Counsel appearing for the Appellant submitted that the right of second appeal is specifically taken away under Section 37(2)(b) of the Act of 1996 and therefore by implication it should be held that even a revision is not maintainable under Section 115 of the CPC. He also pointed out that under Section 5 of the Act of 1996, there is a bar against judicial intervention by any judicial authority unless the same is specifically provided for under Part I of the Act of 1996. He said that since a revision is not specifically provided for and CPC is not applicable to proceedings under the Act of 1996, a revision to the High Court does not lie.

The Supreme Court observed that although the application of CPC is not specifically provided for in the Act of 1996 for a proceeding arising out of the Act before a civil court, since there is no express exclusion of CPC it cannot be inferred that CPC is not applicable to such proceedings before a civil court. It has been held by the Supreme Court in more than one case that the jurisdiction of the civil court to which a right to decide a lis between the parties has been conferred can only be taken away by a statute in specific terms and such exclusion of right cannot easily be inferred because there is always a string presumption that the civil courts have the jurisdiction to decide all questions of civil nature, therefore if at all there has to be inference the same should be in favour of the jurisdiction of the court rather than the exclusion of such jurisdiction and there being no such exclusion of the CPC in specific terms except to the extent stated in Section 37(2), it cannot be inferred that CPC is not applicable merely because the Act of 1996 has not provided CPC to be applicable. The same view was held by a three-judge bench of the Supreme Court in the case of Bhatia International Vs. Bulk Trading S.A., which said that “ordinarily the jurisdiction may not be ousted unless the statutory provision explicitly indicates or even by inferential conclusion that the court arrives at the same when such a conclusion is the only conclusion”.

The Supreme Court also observed that the provision for appeal to a civil court is contained in Section 37 of the Act of 1996. The term “court” is defined in Section 2(e) of the Act of 1996. From the definition of the court it is clear that the appeal is not to any person but to a civil court. In such a situation, the proceedings before such court will have to be controlled by the provisions of CPC, therefore the remedy by way of a revision under Section 115 of CPC will not amount to a judicial intervention not provided for by Part I of the Act of 1996. In other words, when the Act of 1996 provided for an appeal to a civil court under Section 37 and the application of CPC is not expressly barred, the revisional jurisdiction of the High Court gets attracted. If that be so, the bar under Section 5 of the Act of 1996 will not be attracted because conferment of appellate power on the civil court in Part I of the Act of 1996 attracts the provisions of CPC also.

The Supreme Court also observed that “it is true that the power of this court to entertain an appeal directly is not taken away merely because another remedy is available but then the question is, should this court encourage litigants to indulge in hop, skip and jump to reach this court either for the reason that the remedy from this court would be quick or more efficacious? The answer, in our opinion, should be no.”

The appeal was dismissed and the appellant was directed by the Supreme Court to present a revision petition to the High Court within 30 days from the date of the judgement and stated that the same would be entertained by the High Court without going into the question of limitation, if any.

 

Citation :
(2002) 5 SCC 510

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