Cj Darcl Logistics Ltd. A Company ... vs Bharat Heavy Electrical Ltd. on 27 April, 2023

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Madhya Pradesh High Court

Cj Darcl Logistics Ltd. A Company ... vs Bharat Heavy Electrical Ltd. on 27 April, 2023

Bench: Vishal Dhagat

                                                              1
                            IN     THE       HIGH COURT OF MADHYA PRADESH
                                                  AT JABALPUR
                                                       BEFORE
                                         HON'BLE SHRI JUSTICE VISHAL DHAGAT
                                                  ON THE 27 th OF APRIL, 2023
                                              ARBITRATION CASE No. 20 of 2022

                           BETWEEN:-
                           CJ   DARCL    LOGISTICS  LTD.   A   COMPANY
                           INCORPORATED UNDER THE COMPANIES ACT 2013
                           THROUGH    ITS   AUTHORISED   REPRESENTATIVE
                           HAVING ITS REGISTERED OFFICE AT DARCL HOUSE,
                           PLOT NO. 55P SECTOR-44, INSTITUTIONAL AREA
                           GURUGRAM, HARYANA (HARYANA)

                                                                                           .....PETITIONER
                           (BY SHRI SIDHARTH NARULA, ADVOCATE)

                           AND
                           BHARAT HEAVY ELECTRICAL LTD. THROUGH ITS
                           AUTHORISED      REPRESENTATIVE   HAVING    ITS
                           REGISTERED OFFICE AT BHEL HOUSE SIRI FORT NEW
                           DELHI AT ALSO BHEL PIPLANI, BHOPAL MADHYA
                           PRADESH 462022 (DELHI)

                                                                                        .....RESPONDENTS
                           (BY SHRI AJAY MISHRA, SR. ADVOCATE WITH SHRI GAURAV TIWARI,
                           ADVOCATE)

                                 This petition coming on for admission this day, th e court passed the

                           following:
                                                               ORDER

Applicant has filed this application under Section 11(5) of Arbitration and Conciliation Act, 1996.

2. During the course of argument, learned Senior Counsel for the non- applicant raised an oral objection regarding maintainability of Arbitration Case. It is submitted that arbitration agreement entered between the parties is neither registered nor stamped and in view of same, arbitration clause cannot be acted Signature Not Verified Signed by: MONSI M SIMON Signing time: 4/29/2023 12:30:09 PM 2 upon. Learned Senior Counsel for the non-applicant further placed reliance on judgment passed by 5 Judges Bench of the Apex Court in the case of M/s N. N. Global Mercantle Pvt. Ltd. Vs. M/s Indo Unique Flame Ltd and Others, C.A No.3802/2020, wherein by majority of 3:2 the Constitutional Bench of Supreme Court held that "an instrument which is exigible to stamp duty may contain an arbitration clause and which is not stamped cannot be said to be a contract enforceable in law within the meaning of Section 2(h) of the Contract Act and is not enforceable under Section 2(g) of the Contract Act". In view of same, prayer is made for dismissal of Arbitration Case.

3. Learned counsel for the applicant was not able to deny that agreement was unregistered and unstamped.

4. In view of aforesaid facts and circumstances of the case, Arbitration Case filed by the applicant is dismissed.

5. Applicant is at liberty to take recourse to law for registration and stamping of instrument in accordance with law.

(VISHAL DHAGAT) JUDGE mms Signature Not Verified Signed by: MONSI M SIMON Signing time: 4/29/2023 12:30:09 PM

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