SUNDARAM FINANCE LTD. versus NEPC INDIA LTD.

SUNDARAM FINANCE LTD. versus NEPC INDIA LTD.

Under Section 9 of the Arbitration and Conciliation Act, 1996, courts have jurisdiction to grant interim orders before commencement of arbitral proceedings provided there is a valid arbitration agreement and manifest intention to refer dispute to arbitration; issuance of notice under Section 21 before filing Section 9 application is not mandatory.

Parties
Appellant: Sundaram Finance Ltd.; Respondent: NEPC India Ltd.
Jurisdiction
India
Judgment Date
13 January 1999
Procedural Posture
Civil Appeal / Appeal From Madras High Court Judgment Dated 22.6.98
Outcome
Appeals disposed of; High Court judgment set aside; petition remanded to High Court for consideration on merits; no order as to costs.
Legal Topics
Interim Measures, Commencement of Arbitral Proceedings, Jurisdiction of Courts Before Arbitration, Interpretation of Section 9 Arbitration and Conciliation Act, 1996
Arbitration Law Interim Measures Commencement of Arbitral Proceedings Jurisdiction of Courts Before Arbitration Interpretation of Section 9 Arbitration and Conciliation Act, 1996

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Parties

Sundaram Finance Ltd.

Appellant

NEPC India Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Madras High Court Judgment Dated 22.6.98

Legal Issues

  1. 1 Whether a court has jurisdiction to grant interim orders under Section 9 of the Arbitration and Conciliation Act, 1996 before the commencement of arbitral proceedings
  2. 2 Whether issuance of notice invoking arbitration clause is mandatory before filing a Section 9 application

Ratio Decidendi

Under Section 9 of the Arbitration and Conciliation Act, 1996, courts have jurisdiction to grant interim orders before commencement of arbitral proceedings provided there is a valid arbitration agreement and manifest intention to refer dispute to arbitration; issuance of notice under Section 21 before filing Section 9 application is not mandatory.

Court Disposition

Appeals disposed of; High Court judgment set aside; petition remanded to High Court for consideration on merits; no order as to costs.

Orders

  • High Court judgment set aside.
  • Respondent's petition challenging trial court order to be decided on merits.