Execution Proceedings Can't Be Quashed Solely Due To Non-Supply Of Signed Arbitral Award: Chhattisgarh High Court

Brief Facts

The petitioner purchased a vehicle through a hire purchase agreement with respondent No.1/bank. The petitioner failed to make payment of installments, therefore, according to the agreement, an arbitrator was appointed. The arbitrator passed an ex-parte award to the tune of Rs.10 lakh vide award dated 30.07.2021.

The respondent Bank filed an application for execution under Section 36 of the Arbitration and Conciliation Act, 1996 read with Order XXII Rule 11 of the CPC before the 1st Additional District Judge, Ambikapur and the same was registered as Execution Case. The petitioner appeared before the Executing Court and contended that he never received a signed copy of the award.

The petitioner filed an application under Section 31 (5) of the Arbitration and Conciliation Act, 1996 read with Section 151 of the CPC. The Executing court rejected the application on 9.08.2024. The petitioner filed the petition seeking to quash the order.

Observations

The court noted that the petitioner did not take any steps to obtain a certified copy of the award. “Non-supply of the signed arbitral award may be a ground for setting aside an award, but on this count alone, the execution proceedings cannot be quashed”, the court observed.

The court observed that an award can only be challenged under section 34(2) and not otherwise. It dismissed the petition.

Case Title: Amit Kumar Jain vs. Induslnd Bank Limited Through Its Director & Anr.

Case Number: WP227 No. 39 of 2025

Date of Order: 15.01.2025