{"id":265878,"date":"2022-04-25T12:00:29","date_gmt":"2022-04-25T06:30:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=265878"},"modified":"2022-04-28T16:55:24","modified_gmt":"2022-04-28T11:25:24","slug":"scope-of-s-9-of-ac-act-cannot-be-extended-to-enforcement-of-award-or-granting-fruits-of-award-to-award-holder","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/25\/scope-of-s-9-of-ac-act-cannot-be-extended-to-enforcement-of-award-or-granting-fruits-of-award-to-award-holder\/","title":{"rendered":"Cal HC | Scope of S. 9 of A&#038;C Act cannot be extended to enforcement of award or granting fruits of award to award holder as an interim measure; application dismissed"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Calcutta High Court:<\/strong> Ravi Krishan Kapur, J. dismissed an application which was filed under Section 9 of the Arbitration and Conciliation Act, 1996 (\u2018the Act\u2019) wherein liberty to withdraw a sum of Rs 4,11,89,759\/- deposited by the award debtor, State of West Bengal, with the Registrar, Original Side of this Court upon furnishing of appropriate security was sought.<\/p>\n<p style=\"text-align: justify;\">The petitioner was awarded a sum of Rs 2,66,69,73\/- on account of various claims and a further sum of Rs 1,37,85,395\/- on account of costs alongwith interest @18% per annum from 25 December, 2018 till the date of payment. Being aggrieved by the award, the respondent had filed an application under Section 34 of the Act which is pending. In an application under Section 36(2) of the Act, by an order, a Coordinate Bench had directed the award debtor to furnish security. It was submitted on behalf of the parties, that security had since been furnished by the respondent. Hence, this application.<\/p>\n<p style=\"text-align: justify;\">The State submitted a preliminary point of maintainability and contended that the reliefs sought for by the petitioner are beyond the scope and ambit of Section 9 of the Act. On behalf of the petitioner, it was contended that the applicability of Section 9 was no longer res integra citing a decision passed by the Division bench in connected proceedings.<\/p>\n<p style=\"text-align: justify;\">The Court explained that <em>true object and intention behind Section 9 of the Act is to provide for interim or provisional measures to a party before or during or any time after making an award which are protective in nature. The orders contemplated under Section 9 inter-alia pertain to preservation, interim custody or sale of goods which are the subject matter of the arbitration agreement, securing the amount in dispute in the arbitration, detention, preservation or inspection of any property or thing which is the subject matter of the arbitration, interim injunction or appointment of a Receiver or such other interim measures of protection which may appear to be just and convenient<\/em> relying on the decision in <em>Adhunik Steels Ltd. v. Orissa Manganese and Minerals (P) Ltd.,<\/em> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/axT55gEp\">(2007) 7 SCC 125<\/a>.<\/p>\n<p style=\"text-align: justify;\">The Court was of the view that the scope of Section 9 of the Act cannot be extended to enforcement of the award or granting the fruits of the award to the award holder as an interim measure. The Court also acknowledged that there have been a number of decisions passed by the Supreme Court wherein the petitioner has been permitted to withdraw the amount deposited. However, none of the decisions have been passed in applications arising under Section 9 of the Act.<\/p>\n<p style=\"text-align: justify;\">The application was dismissed and prayer for withdrawal was rejected.[Satyen Construction v. State of West Bengal, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/Hpud982a\"><b>2022 SCC OnLine Cal 708<\/b><\/a>, decided on 08-04-2022]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\">For the Petitioner : Mr Jayanta Mitra, Senior Adv., Ms Nilanjana Adhya, Mr Aniruddha Mitra, Mr N. Das<\/p>\n<p style=\"text-align: justify;\">For the State: Mr S. N. Mookerji, Advocate General, Mr Suman Dutta, Mr Paritosh Sinha<\/p>\n<hr \/>\n<h4 style=\"text-align: justify;\"><span style=\"color: #993300;\">Suchita Shukla, Editorial Assistant has reported this brief.<\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Calcutta High Court: Ravi Krishan Kapur, J. dismissed an application which was filed under Section 9 of the Arbitration and Conciliation Act, <\/p>\n","protected":false},"author":67011,"featured_media":52131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[3226,2773,34829],"class_list":["post-265878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitration","tag-Award","tag-conciliation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cal HC | Scope of S. 9 of A&amp;C Act cannot be extended to enforcement of award or granting fruits of award to award holder as an interim measure; 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Telangana HC imposes Rs 5 Lakhs cost on HMDA for filing vexatious pleas to avoid Rs. 179 Cr award","author":"Editor","date":"May 22, 2025","format":false,"excerpt":"\u201cWe find the conduct of HMDA not only to be in blatant disregard of the law but also evincing desperation to avoid the processes of law by pushing back their obligation to make payment to CEL by filing one vexatious proceeding after another.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Telangana High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Telangana-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Telangana-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Telangana-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Telangana-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":315775,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/01\/calcutta-high-court-determines-applicable-interest-rate-based-on-amended-section-317b-of-arbitration-and-conciliation-act-scc-times\/","url_meta":{"origin":265878,"position":2},"title":"Calcutta High Court determines applicable interest rate based on amended Section 31(7)(b) of Arbitration and Conciliation Act","author":"Ritu","date":"March 1, 2024","format":false,"excerpt":"Calcutta High Court applied the amended Section 31(7)(b) for determining the interest rate after considering the silence of the Award on the interest issue and the subsequent execution proceedings filed after the 2016 amendment.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Calcutta-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Calcutta-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Calcutta-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Calcutta-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":304893,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/10\/16\/calcutta-high-court-allows-challenge-under-section-34-of-arbitration-and-conciliation-act-scc-blog-legal-research\/","url_meta":{"origin":265878,"position":3},"title":"Arbitrator&#8217;s failure to decide on Interest Claim amounts to a &#8220;Decision&#8221;, Calcutta High Court allows challenge under Section 34 of Arbitration and Conciliation Act","author":"Ritu","date":"October 16, 2023","format":false,"excerpt":"Calcutta High Court held Arbitrator's refusal to decide question of interest under the MSMED Act constitutes a \u201cdecision\u201d and therefore, can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":259555,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/05\/mp-hc-dismissal-of-application-under-s-34-of-arbitration-and-conciliation-act-of-1996-on-ground-of-limitation-will-come-within-the-purview-of-refusing-to-set-aside-an-arbitration-award\/","url_meta":{"origin":265878,"position":4},"title":"MP HC | Dismissal of application under S. 34 of Arbitration and Conciliation Act of 1996 on ground of limitation will come within the purview of refusing to set aside an arbitration award","author":"Editor","date":"January 5, 2022","format":false,"excerpt":"Madhya Pradesh High Court: Vishal Dhagat, J. allowed an arbitration appeal against an impugned order passed by the First ADJ of Balaghat (MP). 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