Is an order passed under Section 9 of the Arbitration andConciliation Act, 1996 (hereinafter referred to as 'the Arbitration
Act') by a Commercial Court appealable under Section 13(1) of
the Commercial Courts Act, 2015 (hereinafter referred to as 'the
Commercial Courts Act')? This question essentially falls for
consideration in the instant case.
In
the instant case, the impugned order is an order of injunction. It
is appealable under Order XLIII of the Code of Civil Procedure,
1908. It is an order passed under Section 9 of the Arbitration
Act. It is also appealable under Section 37 of the Arbitration Act.
Section 37(1)(b) of the Arbitration Act states that an appeal shall
lie from an order granting or refusing to grant any measure
under Section 9 of the said Act. Right of appeal is the creature of
a statute. It is well settled that right of appeal is a substantive
right. Nothing contained in Section 13(1) or Section 13(2) of the
Commercial Courts Act curtails this right of appeal.
21. At this juncture, it is to be noted that the heading of
the unamended Section 13 of the Commercial Courts Act also
read as “Appeals from decrees of Commercial Courts and
Commercial Divisions”. There was a proviso to unamended
Section 13(1) of the Act which now stands as the proviso to
Section 13(1A) of the Act. This proviso restricts the right of
appeal from orders that are specifically enumerated under Order
XLIII of the Code of Civil Procedure and Section 37 of the
Arbitration Act. If the contention of the learned counsel for the
petitioners is accepted, the proviso to Section 13(1A) of the
Commercial Courts Act would be meaningless.
22. The scope of the proviso to the unamended Section
13(1) of the Commercial Courts Act, which now stands as the
proviso to Section 13(1A) of the Act, was considered by the
Supreme Court in Kandla Export Corporation v. M/s OCI
Corporation : (2018) 14 SCC 715 and it was held as follows:
“Section 13(1) of the Commercial Courts Act,
with which we are immediately concerned in
these appeals, is in two parts. The main provision
is, as has been correctly submitted by Shri Giri, a
provision which provides for appeals from
judgments, orders and decrees of the
Commercial Division of the High Court. To this
main provision, an exception is carved out by the
proviso. ..... The proviso goes on to state that an
appeal shall lie from such orders passed by the
Commercial Division of the High Court that are
specifically enumerated under Order XLIII of the
Code of Civil Procedure Code, 1908, and Section
37 of the Arbitration Act. It will at once be
noticed that orders that are not specifically
enumerated under Order XLIII of the CPC would,
therefore, not be appealable, and appeals that
are mentioned in Section 37 of the Arbitration
Act alone are appeals that can be made to the
Commercial Appellate Division of a High Court”.
23. Moreover, in order to find out whether an appeal
against an order passed under Section 9 of the Arbitration Act is
maintainable or not, the provisions of the said Act have to be
looked into. There is no independent right of appeal provided
under Section 13(1) of the Commercial Courts Act. It merely
provides the forum of filing appeals. Section 37(1) (b) of the
Arbitration Act creates the right to file an appeal against an order granting or refusing to grant any measure under Section 9 of the said Act. It is the parameters of Section 37(1) of the Arbitration Act alone which have to be looked at in order to determine whether an appeal against an order under Section 9 of the said Act is maintainable or not (See BGS SGS Soma JV v. NHPC Limited : (2020) 4 SCC 234).
24. The question whether the proviso in Section 13 of the
Commercial Courts Act applies only to Section 13(1A) or whether
it applies to Section 13(1) also, does not arise for consideration
in the instant case. The reason is that, the order impugned in this
original petition, is an order passed under Section 9 of the
Arbitration Act and therefore, appealable under Section 37 of the
said Act, which is specifically mentioned in the proviso.
25. The discussion above leads to the conclusion that an
order under Section 9 of the Arbitration and Conciliation Act,
1996 passed by a Commercial Court below the level of a District
Judge is appealable under Section 13(1) of the Commercial
Courts Act.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
OP(C).No.1467 OF 2020
PRANATHMAKA AYURVEDICS PVT LTD. Vs COCOSATH HEALTH PRODUCTS
Coram: MR. JUSTICE R. NARAYANA PISHARADI
Dated this the 24th day of November, 2020
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