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2022 (1) TMI 558

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..... egal. None of the aforesaid exceptions shall be applicable to the facts of the case on hand. The High Court has entered into the merits of the claim and has decided the appeal under Section 37 of the Arbitration Act as if the High Court was deciding the appeal against the judgment and decree passed by the learned trial Court. The High Court has exercised the jurisdiction not vested in it under Section 37 of the Arbitration Act. The impugned judgment and order passed by the High Court is hence not sustainable. The impugned judgment and order passed by the High Court is hereby quashed and set aside - Appeal allowed. - CIVIL APPEAL NO. 266 OF 2022 - - - Dated:- 11-1-2022 - M.R. Shah and B.V. Nagarathna, JJ. JUDGMENT Fee .....

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..... ed 20.09.2001 to deposit a sum of ₹ 19 lakhs as sponsorship money. The appellant vide letter dated 17.01.2002 terminated the contract. Dispute arose between the parties. The matter was referred to the sole arbitrator. 2.2 Vide award dated17.11.2005, the arbitrator directed the respondent to pay a sum of ₹ 9.5 lakhs. The counter claim lodged by the respondent claiming ₹ 13.92 lakhs was dismissed by the arbitrator. The respondent thereafter filed objection petition before Additional District Judge, Chandigarh under Section 34 of the Arbitration Act against the award passed by the arbitrator. Vide order dated 25.09.2014, the Additional District Judge dismissed the appeal/objection petition. 2.3 Feeling aggrieved and .....

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..... s submitted that in an appeal under Section 37 of the Arbitration Act, the High Court has no jurisdiction to enter into the merits of the claim awarded by the arbitrator, confirmed by the first appellate Court under Section 34 of the Arbitration Act. 3.4 It is submitted that in the present case, the High Court has decided the appeal as if the High Court was deciding the first appeal against the judgment and decree passed by the learned trial Court which as such is not permissible while exercising the power under Section 37 of the Arbitration Act. 3.5 Making the above submissions, it is prayed to allow the present appeal and quash and set aside the impugned judgment and order passed by the High Court. 4. The present appeal is .....

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..... with by the High Court also and the said objection has been overruled by the High Court against which no appeal is preferred by the respondent. In that view of the matter, now it is not open for the respondent to challenge the jurisdiction of the arbitrator, that too in an appeal preferred by the original claimant Corporation appellant herein. 7. So far as the impugned judgment and order passed by the High Court quashing and setting aside the award and the order passed by the Additional District Judge under Section 34 of the Arbitration Act are concerned, it is required to be noted that in an appeal under Section 37 of the Arbitration Act, the High Court has entered into the merits of the claim, which is not permissible in exercise .....

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