Uv Asset Reconstruction Company Limited vs. Axis Bank Limited

Court:Supreme Court of India
Judge:Hon'ble Pamidighantam Sri Narasimha
Case Status:Disposed
Order Date:10 May 2024
CNR:SCIN010169422024

AI Summary

The Supreme Court declined to intervene in a Special Leave Petition filed by UV Asset Reconstruction Company Limited against Axis Bank, involving an arbitration matter. While dismissing the appeal, the Apex Court notably directed the Delhi High Court to expedite the disposal of a Section 37 application, clarifying that previous High Court observations on merits would not prejudice the arbitration jurisdiction.

Ratio Decidendi:
The Supreme Court will not interfere with a High Court's judgment in a Special Leave Petition concerning an arbitration matter if it finds no grounds for intervention, but may issue directions to the High Court for expeditious disposal of a Section 37 application under the Arbitration and Conciliation Act, 1996. Furthermore, any observations made by the High Court on the merits of the matter will not impede its jurisdiction in deciding a Section 37 application.
Obiter Dicta:
The request to the High Court for expeditious disposal of the Section 37 application, and the clarification regarding the non-prejudicial nature of High Court's prior observations on merits for the Section 37 jurisdiction, serve as guidance for the High Court in handling such matters.

Case Identifiers

Primary Case No:10390/2024
Case Type:Special Leave Petition (Civil)
Case Sub-Type:SLP - Arbitration Matter
Secondary Case Numbers:16942/2024, SCIN010169422024
Order Date:2024-05-10
Filing Year:2024
Court:Supreme Court of India
Bench:Division Bench
Judges:Hon'ble Pamidighantam Sri Narasimha, Hon'ble Aravind Kumar

Petitioner's Counsel

Gopal Jain
Senior Advocate - Appeared
Dhruv Dewan
Advocate - Appeared
Yajur Sharma
Advocate - Appeared
Dhruv Sethi
Advocate - Appeared
Sanjukta Roy
Advocate - Appeared

Advocates on Record

Rohan Batra

eCourtsIndia AITM

Brief Facts Summary

UV Asset Reconstruction Company Limited filed a Special Leave Petition in the Supreme Court challenging a final judgment and order dated March 27, 2024, passed by the High Court of Delhi in CMAPPL No. 18584/2024. The underlying dispute appears to be an arbitration matter where a Section 37 application is pending before the High Court.

Timeline of Events

2024-03-27

High Court of Delhi passed judgment/order in CMAPPL No. 18584/2024 (impugned order).

2024-04-13

Special Leave Petition (C) No. 10390/2024 filed in Supreme Court.

2024-05-10

Supreme Court heard and dismissed the Special Leave Petition.

Key Factual Findings

The Supreme Court is not inclined to interfere with the judgment of the High Court.

Source: Current Court Finding

An application under Section 37 of the Arbitration and Conciliation Act, 1996, is pending before the High Court.

Source: Current Court Finding

Any observation made by the High Court on the merits of the matter will not affect the jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996.

Source: Current Court Finding

Primary Legal Issues

1.Whether the Supreme Court should exercise its special leave jurisdiction under Article 136 to interfere with an interim or procedural order of the High Court related to an arbitration matter.
2.The scope and effect of High Court observations on the merits of a Section 37 application under the Arbitration and Conciliation Act, 1996.

Secondary Legal Issues

1.The expeditious disposal of applications under Section 37 of the Arbitration and Conciliation Act, 1996.

Questions of Law

Does an observation by the High Court on the merits of a matter preclude its jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996? (Answered: No, it does not).

Statutes Applied

Arbitration and Conciliation Act, 1996
Section 37
The court clarifies the scope of jurisdiction under Section 37 and directs its expeditious disposal by the High Court.

Petitioner's Arguments

The petitioner (UV Asset Reconstruction Company Limited) argued for interference with the High Court's judgment, presumably on grounds related to the merits or procedure of the underlying arbitration matter, which was subject of a Section 37 application before the High Court.

Respondent's Arguments

The respondent (Axis Bank Limited) likely opposed the Special Leave Petition, seeking to uphold the High Court's order and prevent Supreme Court intervention, as the SLP was dismissed.

Court's Reasoning

The Supreme Court was "not inclined to interfere with the judgment of the High Court," implying that it found no compelling reason or legal error warranting intervention in the High Court's decision. The Court's decision to clarify the scope of Section 37 jurisdiction and direct expeditious disposal suggests that the core issue was related to ensuring the proper and timely handling of the arbitration appeal at the High Court level, rather than re-examining the merits of the High Court's earlier order.

Judicial Philosophy Indicators:
  • Emphasis on Expeditious Justice
  • Respect for Lower Court Jurisdiction (with guidance)
Order Nature:Procedural
Disposition Status:Disposed
Disposition Outcome:Dismissed

Impugned Orders

High Court Of Delhi At New Delhi
Case: CMAPPL No. 18584/2024
Date: 2024-03-27

Specific Directions

  1. 1.The High Court is requested to dispose of the Section 37 application as expeditiously as possible.
  2. 2.Any observation made by the High Court on the merits of the matter will certainly not come in the way of jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996.

Precedential Assessment

Non-Binding (Procedural)

This is a dismissal of an SLP, typically an order of non-interference. While it clarifies a point regarding Section 37 jurisdiction, it doesn't lay down a new substantive legal principle that is binding as a precedent for all courts. It's more of a guidance/direction specific to the ongoing proceedings.

Tips for Legal Practice

1.Special Leave Petitions challenging procedural or interim orders in arbitration matters often face non-interference from the Supreme Court, especially when the underlying Section 37 application is still pending before the High Court.
2.Counsel should highlight any clarifications or directions issued by the Apex Court regarding the scope of jurisdiction (e.g., Section 37 of Arbitration Act) to the lower court to ensure proper application and expeditious disposal.
3.Observations made by a court on merits at an interlocutory stage should not be considered binding or prejudicial when the substantive appeal (like a Section 37 application) is heard subsequently.

Legal Tags

Supreme Court Special Leave Petition ArbitrationSection 37 Arbitration and Conciliation Act 1996High Court jurisdiction arbitration appealExpeditious disposal of Section 37 applicationsNon-interference in High Court arbitration orders

Disclaimer: eCourtsIndia (ECI) is not a lawyer and this analysis is generated by ECI AI, it might make mistakes. This is not a legal advice. Please consult with a qualified legal professional for matters requiring legal expertise.

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Order Text

COURT NO.15

SUPREME COURT OF INDIA RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (C) No(s). 10390/2024

(Arising out of impugned final judgment and order dated 27-03-2024 in CMAPPL No. 18584/2024 passed by the High Court Of Delhi At New Delhi)

UV ASSET RECONSTRUCTION COMPANY LIMITED

VERSUS

AXIS BANK LIMITED

Respondent $(s)$

Petitioner(s)

( IA No.107598/2024-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT)

Date: 10-05-2024 This petition was called on for hearing today. CORAM: HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA HON'BLE MR. JUSTICE ARAVIND KUMAR

For Petitioner(s) Mr. Gopal Jain, Sr. Adv. Mr. Dhruv Dewan, Adv. Mr. Yajur Sharma, Adv. Mr. Rohan Batra, AOR Mr. Dhruv Sethi, Adv. Ms. Sanjukta Roy, Adv.

For Respondent(s)

UPON hearing the counsel the Court made the following ORDER

While we are not inclined to interfere with the judgment 1. of the High Court, we request the High Court to dispose of the Section 37 application as expeditiously as possible. We also make it clear that any observation made by the High Court on the merits of the matter will certainly not come in the way of under Section 37 of the Arbitration and iurisdiction Conciliation Act, 1996.

  1. The Special Leave Petition is dismissed accordingly. Pending applications, if any, shall stand disposed of.

(INDU MARWAH) AR-CUM-PS

(NIDHI WASON) COURT MASTER (NSH)

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Case History of Orders

Order(1) - 10 May 2024

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