M/S Rama Udyog Private Ltd vs M/S New India Assurance Co. Ltd
2022 Latest Caselaw 1216 Chatt

                             HIGH COURT OF CHHATTISGARH, BILASPUR
                                             ORDER SHEET
                                           ARBA No.9 of 2022
                             M/s Rama Udyog Private Ltd. Versus M/s New India
                                          Assurance Co. Ltd.


09.03.2022         Shri Prafull N. Bharat, Senior Advocate appears along with Shri Harshal

             Chouhan, counsel for the Appellant.

                   Heard on an application for grant of stay.

                   Shri Bharat submits that it is a case where the learned Commercial Court

             has travelled beyond the point of issue and has given a finding about the

             spontaneous combustion of iron resulting into total loss, which is wrong.          He

             further submits that this point was not raised before the Commercial Court and the

             Appellant should have been given an opportunity to rebut the same. He further

             submits that therefore, the setting aside of the award would be completely illegal

             and it requires the stay of the proceeding.

                   This Court was insisting to issue notice to the Respondent for hearing on

stay, however, the Counsel for the Appellant prayed for stay.

Having considered the same and after going through the judgment, it is

found that the learned Commercial Court has given a finding about the collusion

and fraud being played by the Appellant along with the Officers of New India

Assurance and serious finding has been recorded. Therefore, this Court was

interested to entertain the application for stay after hearing both the parties but at

the instance of learned Senior Counsel for the Appellant, the application is being heard ex parte. It was observed by the Commercial Court that the impugned

award shakes the conscience of the Court, and therefore, the award was set

aside.

Having perused the same, we are not inclined to stay the effect and

operation of the order dated 18.01.2022 passed by the Commercial Court (District

Level) Naya Raipur in Arbitration M.J.C. No.09/2021 in ex parte hearing.

Accordingly, the application for grant of stay is dismissed.

Issue notice to the Respondent on payment of PF as per rules.

Call for records of the Court below and post the matter thereafter.

                        Sd/-                                               Sd/-

                 (Goutam Bhaduri)                                (Deepak Kumar Tiwari)

                      JUDGE                                              JUDGE




Priya