SECUR INDUSTRIES LTD. versus M/S. GODREJ AND BOYCE MFG. CO. LTD. AND ANR.

SECUR INDUSTRIES LTD. versus M/S. GODREJ AND BOYCE MFG. CO. LTD. AND ANR.

The High Court had no jurisdiction to stay proceedings before the Council, as the proceedings are deemed arbitration under the Arbitration and Conciliation Act, 1996; judicial intervention is only permissible as expressly provided by the Act, and questions regarding notice under Section 21 must be decided by the Council, not courts.

Parties
Appellant: SECUR INDUSTRIES LTD.; Respondent: GODREJ AND BOYCE MFG. CO. LTD.; Respondent: Uttar Pradesh Industry Facilitation Council
Jurisdiction
India
Judgment Date
26 February 2004
Procedural Posture
Civil Appeal / Appeal From Interim Order of High Court
Outcome
Appeal allowed
Legal Topics
Interest on Delayed Payments, Jurisdiction of Courts in Arbitration, Statutory Arbitration, Interim Relief, Industry Facilitation Council
Arbitration Commercial Law Small Scale Industry Law Interest on Delayed Payments Jurisdiction of Courts in Arbitration Statutory Arbitration Interim Relief Industry Facilitation Council

Case Brief

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Parties

SECUR INDUSTRIES LTD.

Appellant

GODREJ AND BOYCE MFG. CO. LTD.

Respondent

Uttar Pradesh Industry Facilitation Council

Respondent

Procedural Posture

Civil Appeal / Appeal From Interim Order of High Court

Legal Issues

  1. 1 Whether the High Court had jurisdiction to stay proceedings before the Industry Facilitation Council
  2. 2 Applicability of Arbitration and Conciliation Act, 1996 to proceedings under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993
  3. 3 Whether notice under Section 21 of Arbitration and Conciliation Act, 1996 is a pre-condition to Council's jurisdiction

Ratio Decidendi

The High Court had no jurisdiction to stay proceedings before the Council, as the proceedings are deemed arbitration under the Arbitration and Conciliation Act, 1996; judicial intervention is only permissible as expressly provided by the Act, and questions regarding notice under Section 21 must be decided by the Council, not courts.

Court Disposition

Appeal allowed

Orders

  • Order of the High Court staying proceedings before the Council is set aside
  • Appeal of respondent No.1 before High Court treated as decided by this order