23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High

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Home / News Updates / Claim Petition Without ...

NEWS UPDATES

Claim Petition Without Verification, Writ Not

Maintainable Against An Order Dismissal Of
Claim : Gujarat High Court
Ausaf Ayyub 17 June 2022 10:30 AM

https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 1/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

The High Court of Gujarat has held that a writ petition would not be maintainable

against an order of the arbitral tribunal whereby it has rejected the claim of a party on

the ground that its pleadings were without verification and affidavit to that effect.

The Single Bench of Justice Vaibhavi D. Nanavati held that once the arbitrator rejects

the claims of a party that essentially means a final disclosure of its claims and the

order of the arbitrator can be challenged under Section 34 of the A&C Act.

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The Court held that on a harmonious reading of Section 2(1)(c) with provisions of

Section 25 and 32 of the A&C Act, an order of the tribunal that puts an end to the claim

of a party can be directly challenged under the provisions of the Act.

https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 2/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

Facts

A dispute arose between the parties in relation to a contract bearing No.B-1/83 of

2012-2013. The Court appointed an arbitrator on the application preferred by the

petitioner. The parties filed their claim and counter-claims before the tribunal.

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After the completion of the final arguments on behalf of the claimant/petitioner, the

respondent raised an objection that the claim statement is not tenable in law as the

same is not duly verified and affirmed by the claimant/petitioner. The arguments were

concluded on 06.04.2019. Thereafter, the petitioner filed an affirmed and verified claim

statement on 08.04.2019 to cure the defect. The arbitral tribunal vide the impugned

order dated 24.09.2019 accepted the objection raised by the respondent and

consequently, rejected the claims of the petitioner.

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https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 3/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

Aggrieved by the decision of the tribunal, the petitioner filed the writ petition against

the impugned order.

The Contention Of The Parties

The petitioner sought the setting aside of the impugned order on the following

grounds:

• By virtue of Section 19 of the A&C Act, the provisions of CPC, 1908 or the
Indian Evidence Act, 1872 do not apply to arbitration proceedings.

• The arbitrator completely ignored the corrected claim statement filed by the
petitioner on 08.04.2019 which was received by it on 09.04.2019 by email and on
11.04.2019 by the post.

• The defect of not verifying or affirming the claim statement is a curable defect
and the petitioner cured the defect before the passing of the impugned order.

• The arbitral tribunal did not give an opportunity to the petitioner to cure the
defect in its claim statement.

• The objection raised by the respondent was also not tenable in view of the
delay and also because the objection was not fatal to result in the rejection of the
claims of the petitioner.

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The respondent objected to the maintainability of the writ petition on the following

grounds:

• The writ petition is not maintainable in view of an alternative remedy available

under Section 34 of the A&C Act.

https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 4/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

• The claim statements filed by the petitioner were not verified and there was no
affidavit in support of the pleadings, therefore, there were no pleadings in the eye
of the law.

• The order was reserved on 06.04.2019, therefore, the claim statement filed by
the petitioner on 11.04.2019 were of no consequence.

• The provisions of Order VI Rules 15(4) and 15(A) provide that every pleading in
a commercial dispute shall be verified by the affidavit in the manner and form
prescribed in this schedule and these provisions are mandatory.

Analysis By The Court

The Court held that the A&C Act is a self-contained act and the interference in

arbitration proceedings at any stage is absolutely unwarranted and the remedies as

available under the Arbitration Act are the ones that are required to be availed and

exhausted by the parties rather than deviating to a writ or any other jurisdiction.

The Court held that by rejecting the claims of the petitioner, the arbitrator has given a

final verdict on the claims of the petitioner and it essentially concludes the claims of

the petitioner against the respondent.

https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 5/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

The Court held that once the arbitrator rejects the claims of a party that essentially

means a final disclosure of its claims and the order of the arbitrator can be challenged

under Section 34 of the A&C Act.

The Court held that on a harmonious reading of Section 2(1)(c) with provisions of

Section 25 and 32 of the A&C Act, an order of the tribunal that puts an end to the claim

of a party can be directly challenged under the provisions of the Act.

The Court held that as the petitioner has an alternative remedy under the A&C Act, the

writ petition would not be maintainable. However, the Court clarified that it has not

assessed the petition on merits and the petitioner is within its right to pursue the

remedy under the A&C Act.

Accordingly, the Court dismissed the petition.

Case Title: Pahal Engineers v. The Gujarat Water Supply and Sewerage Board,

R/SPECIAL CIVIL APPLICATION NO. 8727 of 2019.

https://www.livelaw.in/news-updates/high-court-of-gujarat-justice-vaibhavi-d-nanavati-section-34-of-the-ac-act-arbitral-tribunal-claim-petition-201740 6/17
23/06/2022, 21:32 Claim Petition Without Verification, Writ Not Maintainable Against An Order Dismissal Of Claim : Gujarat High Court

Citation: 2022 LiveLaw (Guj) 220

Counsel for the Petitioner: Mr. Sanjay Mehta and Mr. N R Mehta

Counsel for the Respondents: Mr. DG Chahuhan and Ronak D Chauhan

Click Here To Read/Download Order

TAGS HIGH COURT OF GUJARAT  JUSTICE VAIBHAVI D. NANAVATI  SECTION 34 OF THE A&C ACT 

ARBITRAL TRIBUNAL  ARBITRATION PROCEEDINGS  CLAIM PETITION 

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