Facts
Under a Conversion Agreement dated 1 August 2021, the petitioner supplied materials to the respondent for conversion at the respondent’s plant.
Source reference: p.2, para. 2The final arbitral award dated 31 July 2025 declared the petitioner entitled to the return of its raw materials, finished products and other goods at the plant, and restrained the respondent from obstructing their removal.
Source reference: p.2, paras. 3–4The respondent had separately initiated Section 9 proceedings concerning the goods; those proceedings were withdrawn because enforcement proceedings were pending before an Executing Court, where the goods had been attached.
Source reference: pp.2–3, para. 5After the respondent denied the petitioner’s requests to inspect the goods, the petitioner sought appointment of a Local Commissioner. At the hearing, the petitioner confined its request to inspection of the premises and the goods.
Source reference: pp.3–4, paras. 6–7, 11Issues
Whether the petition was maintainable under Section 9 despite enforcement proceedings concerning the goods being pending before the Executing Court.
Source reference: pp.3–4, paras. 9–15Whether appointment of a Local Commissioner to inspect and inventory the goods was an appropriate interim measure, rather than an indirect enforcement of the award.
Source reference: pp.4–6, paras. 16–18Law Applied
Section 9(1) of the Arbitration and Conciliation Act, 1996 permits a party to seek interim measures after an arbitral award is made but before it is enforced under Section 36; the words “before it is enforced” do not, by themselves, bar interim relief merely because enforcement proceedings have been initiated, although the appropriate relief depends on the facts and the nature of the protection sought.
Source reference: p.4, para. 14The Court relied on the Full Bench decision in B.M. Insulation (P) Ltd. v. Vardeep Petro Chemical (P) Ltd., which relied on the Delhi High Court Division Bench decision in Shanghai Electric Group Company Limited v. Reliance Infrastructure Limited.
Source reference: p.5, para. 15A commission limited to inspection and preparation of an inventory may preserve and ascertain the condition of the subject matter without enforcing the award.
Source reference: p.5, para. 16Reasoning
The Court rejected the maintainability objection because the award recognised the petitioner’s entitlement to the goods, while the petitioner had not commenced enforcement proceedings.
Source reference: p.4, para. 13It held that the existence of enforcement proceedings initiated in relation to the goods did not automatically preclude Section 9 relief.
Source reference: pp.4–5, paras. 14–15Given the petitioner’s denied requests for inspection and the uncertainty over the goods’ continued existence, identity and condition, an inspection and inventory were warranted. The Court considered this limited exercise distinct from enforcing the award.
Source reference: pp.3–5, paras. 6–7, 16Holding
The Court rejected the maintainability objection and appointed Ms. Shreya Raman and Ms. Diya Agrawal as Local Commissioners to inspect and inventory the petitioner’s raw materials and other goods, and finished goods, respectively.
They were authorised to record identifying and physical particulars, photograph and video the inspection, consult relevant records, note any shortage or obstruction, and seek police assistance if required.
Source reference: pp.5–6, para. 18The respondent was directed to cooperate; the Commissioners were to file their report within four weeks of executing the commission.
Source reference: p.7, paras. 19–20The petitioner was to bear the initial fees and expenses, and the petition was disposed of in those terms.
Source reference: p.7, paras. 21–24Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Arbitration and Conciliation Act, 19962
Original Court PDF
Rajadhiraj Tirupani Vinayak Natraj Pvt LtdvsFacor Alloys Limited
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