DALPAT SINGH NARUKA & ANR. versus KARUNA BANSAL & ORS.

DALPAT SINGH NARUKA & ANR. versus KARUNA BANSAL & ORS.

The High Court exceeded the limited jurisdiction vested in it under Section 37 of the Arbitration and Conciliation Act, 1996 by calling for the status report and case diary of FIR No.293/2021, summoning the Investigating Officer and directing transfer of the investigation; those impugned interim orders are beyond what may be lawfully done in an appeal against an order under Section 9 and are therefore quashed and set aside, with the High Court directed to decide the appeal within the parameters of Section 37.

Parties
Appellant: DALPAT SINGH NARUKA & ANR.; Respondent: KARUNA BANSAL & ORS.
Jurisdiction
India
Judgment Date
21 April 2022
Procedural Posture
Special Leave Petition (civil) Challenging Interim Orders Passed by the High Court in Appeals Under Section 37 of the Arbitration and Conciliation Act, 1996 / Challenge to Interim Orders Dated 24 02 2022, 11 03 2022 and 29 03 2022 Arising From Appeal Under Section 37 Against Commercial Court Order Dated 11 02 2021 Dismissing Application Under Section 9
Outcome
Appeals allowed.
Legal Topics
Interim Measures, Scope of Appeal Under Section 37, Misuse of Appellate Proceedings, Limits on Judicial Intervention in Criminal Investigation
Arbitration and Conciliation Act, 1996 Interim Measures Scope of Appeal Under Section 37 Misuse of Appellate Proceedings Limits on Judicial Intervention in Criminal Investigation

Case Brief

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Parties

DALPAT SINGH NARUKA & ANR.

Appellant

KARUNA BANSAL & ORS.

Respondent

Procedural Posture

Special Leave Petition (civil) Challenging Interim Orders Passed by the High Court in Appeals Under Section 37 of the Arbitration and Conciliation Act, 1996 / Challenge to Interim Orders Dated 24 02 2022, 11 03 2022 and 29 03 2022 Arising From Appeal Under Section 37 Against Commercial Court Order Dated 11 02 2021 Dismissing Application Under Section 9

Legal Issues

  1. 1 Whether the High Court exceeded its limited jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996 by passing orders beyond the scope of an appeal against an order under Section 9
  2. 2 Whether an appellate court in proceedings under Section 37 can call for criminal investigation records, summon the Investigating Officer and transfer an FIR
  3. 3 Whether grievances regarding the conduct of a criminal investigation should be addressed in criminal proceedings rather than in an appeal under Section 37

Ratio Decidendi

The High Court exceeded the limited jurisdiction vested in it under Section 37 of the Arbitration and Conciliation Act, 1996 by calling for the status report and case diary of FIR No.293/2021, summoning the Investigating Officer and directing transfer of the investigation; those impugned interim orders are beyond what may be lawfully done in an appeal against an order under Section 9 and are therefore quashed and set aside, with the High Court directed to decide the appeal within the parameters of Section 37.

Court Disposition

Appeals allowed.

Orders

  • Impugned interim orders dated 24-02-2022, 11-03-2022 and 29-03-2022 quashed and set aside.
  • High Court of Rajasthan to decide D.B. Civil Misc. Appeal No.431/2021 strictly in accordance with law and within the parameters of Section 37 of the Arbitration and Conciliation Act, 1996.