Madras High Court
M/S.Edac Engineering Ltd vs M/S.Industrial Fans (India) Pvt. Ltd on 2 September, 2024
Author: M.Sundar
Bench: M.Sundar
O.S.A (CAD) Nos.127 and 128 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 02.09.2024
CORAM
THE HONOURABLE MR.JUSTICE M.SUNDAR
and
THE HONOURABLE MRS.JUSTICE R.SAKTHIVEL
O.S.A (CAD) Nos.127 and 128 of 2023
&
C.M.P.No.22595 of 2023 in O.S.A(CAD) No.127 of 2023
&
C.M.P.No.22596 of 2023 in O.S.A (CAD) No.128 of 2023
M/s.EDAC Engineering Ltd.,
Rep. by its Asst. Manager-Legal
No.88, Mount Road
Guindy, Chennai - 600 032 ... Appellant
in both appeals
Vs.
1. M/s.Industrial Fans (India) Pvt. Ltd.,
Rep. by its Managing Director
Mr.C.Arunagiri
Nellipukkam High Road
Karayambedu Village
Guduvancherry, Chengalpattu Taluk
Kanchipuram District
2. Hon'ble Mr.Justice F.M.Ibrahim Khalifulla
Former Judge, Supreme Court of India
Sole Arbitrator
Flat No.4, 141
Eldams Road, Teynampet
Chennai - 600 018 .. Respondents
in both appeals
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O.S.A (CAD) Nos.127 and 128 of 2023
Prayer in O.S.A (CAD) No.127 of 2023 : Original Side Appeal filed
under Section 13 (1) of Commercial Court 2015 (Act 4 of 2016) against
the order passed in A.No.2080 of 2021 dated 31.08.2023.
Prayer in O.S.A (CAD) No.127 of 2028: Original Side Appeal filed
under Section 13 (1) of Commercial Court 2015 (Act 4 of 2016) against
the order passed in A.No.4609 of 2021 dated 31.08.2023.
For Appellant : Mr.G.Veerapathiran
in both appeals
For Respondent : Ms.J.Jyothi for R1
in both appeals
Ms.Vinithra Srinivasan
of M/s.NVS Associates (Law Firm)
COMMON JUDGMENT
(Judgment of the Court was delivered by M.Sundar, J.)
This common consent judgment will now dispose of the
captioned two 'Original Side Appeals' ['OSAs' for the sake of brevity and
convenience] and captioned two 'Civil Miscellaneous Petitions' ['CMPs'
for the sake of brevity and convenience] thereat.
2. Mr.G.Veerapathiran, learned counsel on record for sole
appellant /sole petitioner 'EDAC Engineering Ltd.,' [hereinafter 'EDAC'
for the sake of brevity], Ms.J.Jyothi, learned counsel for R1 [Industrial
Fans (India) Pvt. Ltd.,] and Ms.Vinithra Srinivasan, learned counsel of
M/s.NVS Associates (Law Firm) for R2 are before this Court.
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O.S.A (CAD) Nos.127 and 128 of 2023
3. Captioned two OSAs are directed against a 'common order
dated 31.08.2023 made in A.Nos.2080 and 4609 of 2021 by a Hon'ble
single Judge of this Court' {hereinafter 'impugned order' for the sake of
brevity and convenience}. To be noted, A.No.2080 of 2021 and
A.No.4609 of 2021 are applications under Section 39 and 39(2)
respectively of 'The Arbitration and Conciliation Act, 1996 (Act No.26
of 1996)' [hereinafter 'A and C Act' for the sake of brevity, convenience
and clarity]. Owing to the captioned matters heading for a closure by
way of a consent order, we are not dilating on facts and we deem it
appropriate that it will suffice to write that both applications were
dismissed by the impugned order by Hon'ble single Judge imposing costs
of Rs.5 lakhs on appellant EDAC and directing the same to be paid to
R2-Hon'ble Arbitrator.
4. There is no disputation or disagreement before us today that
the entire fee/costs of Hon'ble Arbitrator as well as Rs.5 lakhs costs have
since been paid by EDAC.
5. Mr.G.Veerapathiran, learned counsel for EDAC very fairly
submitted that he would withdraw the captioned appeals leaving the
impugned order to be sustained subject only to the costs i.e., Rs.5 lakhs
which has been paid by EDAC. In other words, learned counsel for
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O.S.A (CAD) Nos.127 and 128 of 2023
EDAC submitted that it will suffice if the costs of Rs.5 lakhs is returned
to EDAC and he would not pursue the appeals.
6. Learned counsel for R2 pointed out that certain averments
which are not in good taste have been made qua Hon'ble Arbitrator and
Hon'ble Section 34 Court. Learned counsel for EDAC submitted that the
grounds have been taken only in the campaign against the impugned
order but nonetheless as a matter of good order, all the grounds including
the grounds which are being described as 'not in good taste' qua Hon'ble
Arbitrator as well as Section 34 Court will be withdrawn by way of an
endorsement to be made by Mr.R.Sathish Kumar, son of
Mr.D.Ramalingam, aged 39 years, Senior Legal Officer in EDAC,who
has verified and signed the pleadings.
7. In the light of the narrative thus far, following endorsements
by aforementioned Senior Legal Officer as well as learned counsel for
EDAC Mr.G.Veerapathiran have been made:
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O.S.A (CAD) Nos.127 and 128 of 2023
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8. In the light of the narrative thus far and in the light of
consensus that has been arrived at between the parties, captioned OSAs
and captioned CMPs thereat are disposed of in the following manner:
i) Rs.5,00,000/- [Rupees Five Lakhs only] costs
already paid by EDAC to Hon'ble Arbitrator (R2) will be
returned by way of a Demand Draft payable in Chennai drawn
in favour of EDAC Engineering Ltd., and the Demand Draft
shall be handed over by Ms.Vinithra Srinivasan, learned
counsel for R2 to Mr.G.Veerapathiran, learned counsel for
EDAC within a fortnight from today i.e., by 16.09.2024. To be
noted, the costs is being returned without interest.
ii) All the grounds raised by EDAC as well as
averments made by EDAC in the support affidavit as well as
other affidavits touching upon Hon'ble Arbitrator and Hon'ble
Section 34 Court shall stand withdrawn/effaced in the light
endorsements (scanned and reproduced supra) made by EDAC
in the aforesaid manner;
iii) We are informed by both sides that lien also has
been lifted on and from 14.11.2023;
iv) This Court is informed that EDAC has assailed the
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O.S.A (CAD) Nos.127 and 128 of 2023
award rendered by Hon'ble Arbitrator i.e., award dated
30.04.2021 by way of a Section 34 petition vide O.P.No.564 of
2023. This Section 34 petition will now be heard out by the
Hon'ble Section 34 Court on its own merits and in accordance
with law untrammeled by this order and/or any observations
made either in this order or in the impugned order, which is
sustained sans costs.
Captioned two OSAs are disposed of as withdrawn/closed
albeit with aforementioned observations and directives. Consequently,
CMPs thereat are disposed of as closed. There shall be no order as to
costs.
(M.S.J.) (R.S.V.,J.)
02.09.2024
Index:Yes/No
Neutral Citation: Yes/No
gpa
P.S: Though captioned OSAs are disposed of, list the captioned
OSAs under the cause list caption 'FOR REPORTING
COMPLIANCE' on 23.09.2024.
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O.S.A (CAD) Nos.127 and 128 of 2023
M.SUNDAR.J.,
and
R.SAKTHIVEL, J.,
gpa
O.S.A (CAD) Nos.127 and 128 of 2023
02.09.2024
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