Madras High Court
Shree Abishek Enterprises vs M/S.India Infoline Finance ... on 2 March, 2021
O.P.No.623 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 02.03.2021
Coram
THE HONOURABLE MR. JUSTICE M.SUNDAR
O.P.No.623 of 2020
1.Shree Abishek Enterprises
No.01, 2nd Floor, Siva Tower
DDCC Bank Upstairs
Opp. Railway Station Hosur
Hosur, Tamilnadu – 635109
2. R.Janarthanan
3. R.Manjunath ... Petitioners
vs.
M/s.India Infoline Finance Limited
Rep. By its Authorised Signatory
IIFL House, Plot No.B-23
Sun Infotech Park, Road 16V
Thane Industrial Area, Wagle Estate
Thane, Maharashtra – 400 604 ... Respondent
Petition filed under Section 34 (1) of Arbitration and Conciliation
Act, 1996 to set aside the arbitration award in IFL (SME) E119/2019 in
Loan Agreement No.SL903096 dated 10.06.2019 passed by the sole
Arbitrator, to pass such further and other orders as this Hon'ble Court
may deem fit and proper in the interest of justice and to award costs.
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O.P.No.623 of 2020
For Petitioner : Mr.T.Sundaravadanam
ORDER
Mr.T.Sundaravadanam, learned counsel on record for three
petitioners is before me. Learned counsel submits that the lis which
culminated in the impugned award qua captioned OP has been settled out
of Court. Learned counsel seeks permission to withdraw captioned OP
and makes a further request for refund of Court fees. Learned counsel
has e-mail filed a memo dated 02.03.2021 with annexures. The e-mail,
memo and annexures are as follows:
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2. Learned counsel reiterates the contents of the memo (scanned
and reproduced supra). It is clear that the lis has been settled out of Court
without resorting to any one of the modes adumbrated in Section 89 of
'The Code of Civil Procedure, 1908' ('CPC' for brevity). Notwithstanding
this, petitioner is entitled to full refund of Court fee in the light of
judgment of Hon'ble Supreme Court in the case of The High Court of
Judicature at Madras Vs. M.C.Subramaniam & Ors. reported in 2021
SCC OnLine SC 109. Relevant paragraphs in M.C.Subramaniam's case
are paragraphs 26 and 27 and the same read as follows:
'26. Thus, even though a strict construction of the terms of
Section 89, CPC and 69-A of the 1955 Act may not encompass such
private negotiations and settlements between the parties, we emphasize
that the participants in such settlements will be entitled to the same
benefits as those who have been referred to explore alternate dispute
settlement methods under Section 89, CPC. Indeed, we find it puzzling
that the Petitioner should be so vehemently opposed to granting such
benefit. Though the Registry/State Government will be losing a one-time
court fee in the short term, they will be saved the expense and
opportunity cost of managing an endless cycle of litigation in the long
term. It is therefore in their own interest to allow the Respondent No. 1's
claim.
27. Thus, in our view, the High Court was correct in holding that
Section 89 of the CPC and Section 69-A of the 1955 Act be interpreted
liberally. In view of this broad purposive construction, we affirm the
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O.P.No.623 of 2020
High Court's conclusion, and hold that Section 89 of CPC shall cover,
and the benefit of Section 69-A of the 1955 Act shall also extend to, all
methods of out-of-court dispute settlement between parties that the Court
subsequently finds to have been legally arrived at. This would, thus,
cover the present controversy, wherein a private settlement was arrived
at, and a memo to withdraw the appeal was filed before the High Court.
In such a case as well, the appellant, i.e., Respondent No. 1 herein would
be entitled to refund of court fee.'
(underlining made by this Court for
ease of reference)
3. Registry to refund full Court fee subject to all procedural
formalities in this regard being complied with. Learned counsel requests
that an instrument may be drawn in his favour i.e., first named counsel
for petitioner Mr.T.Sundaravadanam. This exercise shall be completed
by the Registry as expeditiously as possible and in any event within four
weeks from today i.e., on or before 30.03.2021.
Captioned OP dismissed as withdrawn as lis before AT has been
settled out of Court with further direction for refund of full court fee as
above.
02.03.2021
Speaking order: Yes/No
Index: Yes/No
gpa
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M.SUNDAR.J.,
gpa
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