Question

The commencement of arbitral proceedings is not dependant on interim relief being allowed or denied under S.9 of the Arbitration and Conciliation Act, 1996. Supreme Court in which case held so

• A. Firm Ashok Traders & another v. Gurumukh Das Saluja & others
• B. M.M.T.C Ltd. v. Sterile Industries (India) Ltd.
• C. National Thermal Power Corporation v. Flowmore (P.) Ltd.
• D. Magma Leasing Ltd. v. NEPC Micon Ltd.

Hint:

Remember Section 9 of the Arbitration Act as a powerful tool for interim protection that can be invoked "before, during, or after" the arbitral proceedings. The \textit{Firm Ashok Traders} case is the key authority for the "before" part, confirming that you don't need to have an arbitration pending to seek urgent interim relief from a court.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question relates to Section 9 of the Arbitration and Conciliation Act, 1996, which allows a party to apply to a court for interim measures of protection. A key legal issue was whether a court could entertain a Section 9 application even before the arbitration proceedings had formally commenced.
Step 2: Detailed Explanation:
The Supreme Court addressed this issue authoritatively in the case of Firm Ashok Traders & another v. Gurumukh Das Saluja & others, (2004) 3 SCC 155. The Court held that an application under Section 9 for interim relief is maintainable even before the commencement of arbitral proceedings. It clarified that the court has the power to grant interim relief to a party who intends to commence arbitration proceedings. The grant or refusal of interim relief does not depend on the actual commencement of the arbitral proceedings. The Court reasoned that the very purpose of Section 9 is to protect the subject matter of the dispute pending the arbitration, and this protection might be needed urgently, even before the arbitral tribunal is constituted. This ruling established a vital principle ensuring that a party is not left without a remedy to protect their interests while the process of initiating arbitration is underway.
Step 3: Final Answer:
The Supreme Court held this principle in the case of Firm Ashok Traders & another v. Gurumukh Das Saluja & others.