NHPC LIMITED vs. M/S. PATEL ENGINEERING LTD.

  IN THE SUPREME COURT OF INDIA  CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 11700 OF 2018  (ARISING OUT OF SLP (CIVIL) NO.26787 OF 2016)

                      Versus

J U D G M E N T DR. DHANANJAYA Y. CHANDRACHUD, J. Leave granted. 1. The High Court by its impugned order dated 22 August 2016, allowed   a   post­award   application   under   Section   9   of   the Arbitration   and   Conciliation   Act,   1996   (‘the   Act’).     As   a result,   the   appellant   was   called   upon   to   release   the   amount covered by the arbitral award along with interest subject to the respondent furnishing a Bank Guarantee equal to the awarded amount for a period of one year. 2. The grievance of the appellant is that the order of the High   Court   dated   22   August   2016   was   passed   even   though   the period of limitation for challenging the award under Section 34 Signature Not Verified Digitally signed by VISHAL ANAND Date: 2018.12.06 13:37:03 IST Reason: was still to expire.   The award of the arbitral tribunal was made   on   22   April   2016.     Applications   under   Section   33   were 1 disposed of on 04 June 2016.  Hence according to the appellant, the period of limitation for filing the petition under Section 34 of the Act would have expired on 03 September 2016. 3. It   has   been   urged   on   behalf   of   the   appellant   that   the application under Section 9, which was filed on 13 June, 2016 within the period of limitation prescribed for challenging the award  ought not to  have been  entertained  and,  in  any  event, such   an   order   could   not   have   been   passed   by   the   High   Court within the parameters of Section 9 of the Act. 4. Notice in these proceedings was issued on 18 September 2016 and the operation of the impugned order of the High Court was directed to remain stayed till the next date of listing. 5. During the course of the hearing, we have been apprised of the fact that the award of the arbitral tribunal has been set aside on 29 November 2018 by the Additional District Judge­cum­ Presiding  Judge,  Special  Commercial Court,  Gurugram.     Since the arbitral award has been set aside, the basis on which the impugned order was passed by the High Curt ceases to survive. 6. Hence, the order of the High Court dated 22 August 2016 is set aside. 7. Before concluding, it would be necessary for this Court to observe that the present judgment should not be construed as an expression of opinion by the Court on the correctness of the order passed by the High Court, particularly, in view of the submission which has been urged in the present proceedings that 2 even  on the date  on which  the  order was passed  by  the  High Court, it had acted in excess of its jurisdiction. The Civil Appeal is disposed of.  No costs. All the rights and contentions of the parties in regard to the challenge to the arbitral award are kept open to be urged in accordance with law.                          .............................J.                           (DR. DHANANJAYA Y. CHANDRACHUD)   .............................J.                              ( M.R. SHAH ) New Delhi, Dated: NOVEMBER 30, 2018. 3 ITEM NO.51 COURT NO.13 SECTION IV-B S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Petition(s) for Special Leave to Appeal (C) No(s). 26787/2016 (Arising out of impugned final judgment and order dated 22-08- 2016 in FAO No. 4394/2016 passed by the High Court Of Punjab & Haryana At Chandigarh) NHPC LIMITED Petitioner(s) VERSUS M/S. PATEL ENGINEERING LTD. Respondent(s) (IA No.79715/2017-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES, IA NO.49794/2017 – PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES, IA 1/2017 – PERMISSION TO FILE ANNEXURES) Date : 30-11-2018 These matters were called on for hearing today. CORAM : HON'BLE DR. JUSTICE D.Y. CHANDRACHUD HON'BLE MR. JUSTICE M.R. SHAH For Petitioner(s) Mr. N.K. Kaul, Sr. Adv. Mr. Ajit Pudussery, AOR Mr. K. Vijayan, Adv. Mr. Ajeet Singh Verma, Adv. For Respondent(s) Mr. Mahesh Agarwal, Adv. Mr. E. C. Agrawala, AOR UPON hearing the counsel the Court made the following O R D E R Leave granted. The Civil Appeal is disposed of in terms of the Signed Reportable Judgment. No costs. Pending applications, if any, also stand disposed of. (GEETA AHUJA) (SAROJ KUMARI GAUR) COURT MASTER (SH) BRANCH OFFICER ( The Signed Reportable Judgment is placed on the file) 4