M/S HPCL BIO-FUELS LTD. versus M/S SHAHAJI BHANUDAS BHAD

M/S HPCL BIO-FUELS LTD. versus M/S SHAHAJI BHANUDAS BHAD

The Supreme Court held that (1) principles analogous to Order 23 Rule 1 CPC apply to Section 11(6) applications and because the respondent had unconditionally withdrawn the first Section 11(6) petition without obtaining liberty to file afresh, the subsequent Section 11(6) petition based on the same cause of action was not maintainable; (2) even if maintainability were assumed, the second petition filed on 09.12.2022 was time-barred (three-year limitation) and the respondent could not avail Section 14(2) Limitation Act because IBC proceedings and arbitration do not seek the same relief; and (3) Section 5 condonation was refused because the respondent acted deliberately in abandoning...

Parties
Appellant: M/s HPCL Bio-Fuels Ltd.; Respondent: M/s Shahaji Bhanudas Bhad
Jurisdiction
India
Judgment Date
07 November 2024
Procedural Posture
Civil Appeal / Judgment on Appeal by Supreme Court
Outcome
Appeal allowed; impugned High Court order set aside
Legal Topics
Section 11(6) Appointment of Arbitrator, Order 23 Rule 1 CPC Withdrawal/abandonment, Section 14 Limitation Act Exclusion of Time, Section 5 Limitation Act Condonation, Section 9 IBC Proceedings, Commencement of Arbitration (sections 21 and 43(2) Aca)
Arbitration Limitation Insolvency and Bankruptcy Civil Procedure Section 11(6) Appointment of Arbitrator Order 23 Rule 1 CPC Withdrawal/abandonment Section 14 Limitation Act Exclusion of Time Section 5 Limitation Act Condonation +2 more

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Parties

M/s HPCL Bio-Fuels Ltd.

Appellant

M/s Shahaji Bhanudas Bhad

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal by Supreme Court

Legal Issues

  1. 1 Whether a fresh Section 11(6) application is maintainable when an earlier Section 11(6) application was unconditionally withdrawn without liberty to file afresh
  2. 2 Whether the later Section 11(6) application filed on 09.12.2022 was time-barred and whether time spent pursuing IBC proceedings is excludable under Section 14 Limitation Act
  3. 3 Whether delay in filing the fresh Section 11(6) application can be condoned under Section 5 Limitation Act

Ratio Decidendi

The Supreme Court held that (1) principles analogous to Order 23 Rule 1 CPC apply to Section 11(6) applications and because the respondent had unconditionally withdrawn the first Section 11(6) petition without obtaining liberty to file afresh, the subsequent Section 11(6) petition based on the same cause of action was not maintainable; (2) even if maintainability were assumed, the second petition filed on 09.12.2022 was time-barred (three-year limitation) and the respondent could not avail Section 14(2) Limitation Act because IBC proceedings and arbitration do not seek the same relief; and (3) Section 5 condonation was refused because the respondent acted deliberately in abandoning...

Court Disposition

Appeal allowed; impugned High Court order set aside

Orders

  • Impugned order dated 31.01.2024 of the High Court of Judicature at Bombay set aside
  • Fresh Section 11(6) petition of 09.12.2022 held not maintainable and time-barred