Section 13 Of Commercial Courts Act Doesn't Provide Any Independent Right To Appeal In Arbitration Matters: Delhi High Court Reiterates

The court observed that appeals in arbitration matters are maintainable only if expressly provided for in section 37/ 50 of the A&C Act. Section 13 of the Commercial Courts Act, 2015 does not confer an independent right to appeal.

Brief Facts

The Appellant filed the appeal challenging the impugned order in which the Court directed the appellant to deposit the principal awarded amount with the Registrar General within eight weeks. The execution of the Impugned Award was stayed pending the section 34 petition filed by the appellant.

Observations

The court held that the appeal would not be maintainable under Section 13 of the Commercial Courts Act r/w Order 43 Rule 1 of the Code of Civil Procedure, 1908 and also under Section 10 of the Delhi High Court Act, 1966.

The court referred to Furest Day Lawson Limited v. Jindal Exports Limited (2011), where the Supreme Court held that the A&C Act being a self-contained Code, carries the negative import that appeals not mentioned therein, are not permissible. It was held that that was not appealable under Section 50 of the Act was not subject to Letters Patent Appeal.

In Kandla Export Corporation v. OCI Corporation (2018), it was held that no appeal is maintainable under the A&C Act unless expressly provided for in sections 37 or 50.

In BGS SGS Soma JV v. NHPC Ltd. (2020), the Supreme Court observed that the A&C Act being a Special Act while the Commercial Courts Act being a General Act, the appeal against any order passed under the provisions of the A&C Act shall be maintainable only in accordance with Sections 37 or 50 of the same. Further, section 13 of the Commercial Courts Act does not provide any independent right to appeal, and merely provides for Forums thereof.

The Supreme Court had held that even though an order passed may generally be appealable under Order 43 Rule 1 of the CPC, if it does not fall with the 'pigeonhole' of Section 37 of the A&C Act, it would not be appealable under Section 13 of the Commercial Courts Act.

The court held that because the Impugned Order neither set aside nor refused to set aside the arbitral award under challenge before the Single Judge, it is not an order covered by Section 37(1)(c) of the A&C Act and thus cannot be appealed. The court dismissed the appeal.

Case Title: Synergies Casting Ltd. vs. National Research Development Corporation & Anr.

Citation: 2025 LiveLaw (Del) 64

Case Number: FAO(OS) (COMM) 1/2025

Date of Judgment: 08.01.2025