KANPUR JAL SANSTHAN & ANOTHER versus M/S. BAPU CONSTRUCTION

KANPUR JAL SANSTHAN & ANOTHER versus M/S. BAPU CONSTRUCTION

Order 27 Rules BA and 88 CPC apply only to the Government in exclusivity, not to agencies/instrumentalities like Kanpur Jal Sansthan; Order 41 Rule 5 CPC applies to an appeal under Section 37 Arbitration Act and conditions for deposit/security can be imposed. The High Court's order requiring deposit and allowing withdrawal of 50% without security lacked justifiable reason; hence, the appellant should instead furnish security for the entire award amount.

Parties
Appellant: Kanpur Jal Sansthan; Respondent: M/s. Bapu Construction
Jurisdiction
India
Judgment Date
03 January 2014
Procedural Posture
Civil Appeal / Appeal Against High Court Order Rejecting Objection Under Section 34 of Arbitration and Conciliation Act, 1996
Outcome
Appeal disposed of with modifications
Legal Topics
Enforceability of Arbitral Award, Applicability of Code of Civil Procedure, Deposit and Security in Stay Applications, Definition of Government Under CPC
Arbitration Civil Procedure Enforceability of Arbitral Award Applicability of Code of Civil Procedure Deposit and Security in Stay Applications Definition of Government Under CPC

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Parties

Kanpur Jal Sansthan

Appellant

M/s. Bapu Construction

Respondent

Procedural Posture

Civil Appeal / Appeal Against High Court Order Rejecting Objection Under Section 34 of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether Order 41 Rule 5 CPC applies to an appeal against rejection of objection under Section 34 of Arbitration and Conciliation Act, 1996.
  2. 2 Whether Kanpur Jal Sansthan qualifies as 'Government' under Order 27 Rules BA and 88 CPC.
  3. 3 Whether the High Court correctly imposed deposit and withdrawal conditions on Jal Sansthan as appellant.

Ratio Decidendi

Order 27 Rules BA and 88 CPC apply only to the Government in exclusivity, not to agencies/instrumentalities like Kanpur Jal Sansthan; Order 41 Rule 5 CPC applies to an appeal under Section 37 Arbitration Act and conditions for deposit/security can be imposed. The High Court's order requiring deposit and allowing withdrawal of 50% without security lacked justifiable reason; hence, the appellant should instead furnish security for the entire award amount.

Court Disposition

Appeal disposed of with modifications

Orders

  • Order of High Court modified: Appellant directed to furnish security for entire award amount to the satisfaction of District Judge within six weeks.
  • Request to High Court to dispose of appeal by end of June 2014.