AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 136 of the Constitution of India
  • Section 167 of the Act
  • Section 11, Subsection (6) of the Arbitration and Conciliation Act, 1996
  • Section 11(6) of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 136 of the Constitution of India
  • Section 167 of the Act
  • Section 11, Subsection (6) of the Arbitration and Conciliation Act, 1996
  • Section 11(6) of the Act
Smart Summary

Factual and Procedural Background

The petitioner invoked the Supreme Court’s jurisdiction under Article 136 of the Constitution of India by filing a Special Leave Petition (SLP). The SLP sought to challenge an order passed by the learned Chief Justice of the Bombay High Court in Arbitration Petition No. 288 of 1998, which had been moved under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“the Act”). The impugned order concerned the appointment of an arbitrator, a function that Section 11 entrusts to the Chief Justice or his designate. No other factual details about the underlying dispute are provided in the opinion.

Legal Issues Presented

  1. Whether an order made by a High Court Chief Justice (or his designate) under Section 11(6) of the Arbitration and Conciliation Act, 1996—being administrative in nature—constitutes a “judgment, decree, determination, sentence or order” of a “court or tribunal” amenable to the Supreme Court’s appellate jurisdiction under Article 136 of the Constitution.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sundaram Finance Ltd. v. NEPC India Ltd., (1999) 2 SCC 479 Orders under Section 11 of the 1996 Act are administrative, not judicial. The Court relied on this case to characterize the impugned order as administrative, thereby falling outside Article 136’s scope.
Indo-China Steam Navigation Co. Ltd. v. Jasjit Singh, AIR 1964 SC 1140; (1964) 6 SCR 594 Article 136 applies only to orders of a judicial or quasi-judicial character passed by a court or tribunal. Used to reinforce that an administrative order, even if passed in a quasi-judicial manner, is not appealable under Article 136.

Court's Reasoning and Analysis

1. The Court first noted its earlier determination in Sundaram Finance that appointments made under Section 11 of the Act are administrative decisions.
2. Referring to the Constitution Bench judgment in Indo-China Steam Navigation, the Court reiterated that Article 136 review is limited to judicial or quasi-judicial orders passed by a court or tribunal.
3. Because the impugned order was administratively rendered by the Chief Justice (not by a court or tribunal exercising judicial functions), it fell outside the ambit of Article 136.
4. On this “short ground” alone—without addressing merits of the underlying arbitration dispute—the Court concluded that the SLP was not maintainable.

Holding and Implications

DISPOSED OF AS NOT MAINTAINABLE.

The Supreme Court declined to entertain the Special Leave Petition because the challenged order was administrative and therefore beyond Article 136 jurisdiction. The petitioner may still pursue any other statutory or contractual remedies available. The decision reaffirms existing precedent but sets no new substantive rule.

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    Ador Samia Private Limited v. Peekay Holdings Limited And Others

    1. This special leave petition under Article 136 of the Constitution of India is moved by the petitioner challenging an order of the learned Chief Justice of the High Court of Bombay in Arbitration Petition No. 288 of 1998 moved before him under Section 11 sub-section (6) of the Arbitration and Conciliation Act, 1996 (“the Act” for short).

    2. It has been held by a Bench of this Court in the case of Sundaram Finance Ltd. v. NEPC India Ltd. (1999) 2 SCC 479 that orders under Section 11 of the Act are not judicial orders. The relevant observations are found in para 12 of the Report as under:

    “Under the 1996 Act, appointment of arbitrator/s is made as per the provision of Section 11 which does not require the court to pass a judicial order appointing arbitrator/s. The High Court was, therefore, wrong in referring to these provisions of the 1940 Act while interpreting Section 9 of the new Act.”

    3. It is now well settled that petition under Article 136 can lie for challenging a judgment, decree, determination, sentence or order in any cause or matter passed or made by any court or tribunal in the territory of India. As the learned Chief Justice or his designate under Section 11(6) of the Act acts in administrative capacity as held by this Court in the aforesaid decision it is obvious that this order is not passed by any court exercising any judicial function nor is it a tribunal having the trappings of a judicial authority. The question of maintainability of such a petition under Article 136 is decided since long by a Constitution Bench of this Court in the case of Indo-China Steam Navigation Co. Ltd. v. Jasjit Singh AIR 1964 SC 1140, (1964) 6 SCR 594.

    4. In the said decision at pp. 601-02 the Constitution Bench of this Court speaking through Gajendragadkar, C.J, has made the following pertinent observations:

    “It is settled by decisions of this Court that the Customs Officer who initially acts under Section 167(12-A) is not a court or tribunal, though it is also settled that in adjudicating upon the question as to whether Section 52-A has been contravened by any ship and by such contravention the said ship has made itself liable to confiscation under Section 167(12-A), the Customs Officer has to act in a quasi-judicial manner.”

    5. At p. 603 it has been further observed as under:

    “The result, therefore, is that it is no longer open to doubt that the Customs Officer is not a court or tribunal, though in adjudicating upon matters under Section 167 of the Act, he has to act in a judicial manner. It may be conceded that neither the Central Board of Revenue, nor the Central Government is a court within the meaning of Article 136.”

    6. At p. 603 it has been further observed as under:

    “It is clear that before an appeal can be entertained in this Court under Article 136, two conditions have to be satisfied; the order impugned must be an order of a judicial or quasi-judicial character and should not be purely an administrative or executive order; and the said order should have been passed either by a court or a tribunal in the territory of India.”

    7. In view of this settled legal position, therefore, there is no escape from the conclusion that orders passed by the learned Chief Justice under Section 11(6) of the Act being of an administrative nature cannot be subjected to any challenge directly under Article 136 of the Constitution of India. Only on this short ground and without expressing any opinion on the merits of the controversy between the parties this special leave petition is disposed of as not maintainable.

    8. Whatever other remedy is available to the petitioner for challenging this order will obviously remain untouched by the present order.

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    Ador Samia Private Limited v. Peekay Holdings Limited And Others
    (Aug 20, 1999)