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MAHANAGAR TELEPHONE NIGAM LTD. versus M/S. APPLIED ELECTRONICS LTD.

Citation: [2016] 11 S.C.R. 227 · Decided: 24-11-2016 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Directions issued

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Judgment (excerpt)

(2016] 11 S.C.R. 227 
MAHANAGAR TELEPHONE NIGAM LTD. 
v. 
M/S. APPLIED ELECTRONICS LTD. 
(Civil Appeal No(s).11584of2016) 
NOVEMBER 24, 2016 
[DIPAK MISRA AND AMITAVA ROY, JJ.] 
Arbitration and Conciliation Act, 1996 - ss.5, 34, 37 - Code 
of Civil Procedure, 1908 - Applicability of - To appeal u/s. 37 of 
the 1996 Act - Cross objection by respondent, if maintainable -
Held: The 1996 Act is a complete code and s.5 of the same in 
categorical terms along with other provisions, lead to definite 
conclusion that no other provision can be attracted - Thus, in the 
scheme of the 1996 Act, the application of CPC' is not conceived of 
and, therefore, as a natural corollary, a cross objection cannot be 
entertained - Distinction from the scheme of 1940 Act, s . ./ 1 of which 
states that the procedure of CPC would be applicable to appeals -
The Arbitration Act, 19./0 - s.41. 
HELD: 1. The Arbitration and Conciliation Act, 1996 as it 
manifests, provides restrictions for challenging the award. It also 
lays the postulate to assail the award and thus emphasis is on 
expeditious disposal. It does not permit a second appeal to be 
entertained as per the language employed in Section 37(3) and 
also under Section 5 of the 1996 Act. 
[Para 25) [241-D) 
2. On perusal of s.41(a) of the Arbitration Act, 1940 in 
juxtaposition with the provisions contained in the Arbitration and 
Conciliation Act, 1996, it seems that the legislature has 
intentionally not kept any provision pertaining to the appl!cability 
of the CPC. On the contrary, section 5 of 1996 Act lays the 
postulate, that notwithstanding anything contained in any other 
law for the time being in force in matters covered by Part-I of the 
1996 Act, no judicial authority shall intervene except so provided 
whereve1ยท under this Act. Section 5 of the 1996 Act which 
commences with a non-obstante clause clearly stipulates that no 
judicial authority shall interfere except where so provided in 
Part 1 of the 1996 Act. It is clearly perceived, the 1996 Act is a 
complete Code and Section 5 in categorical terms along with other 
227 
A 
B 
c 
D 
E 
F 
G 
H 
228 
SUPREME COURT REPORTS 
[2016) 11 S.C.R. 
A 
provisions, lead to a definite conclusion that no other provision 
can be attracted. Thus, the application of ePC is not conceived 
of and, therefore, as a natural corollary, the cross-objection cannot 
be entertained. [Paras 11, 281 [234-E; 242-G-H] 
MCD v. International Security & Intelligence Agency 
B 
Ltd. (2004) 3 sec 250 : 2003 (1) SCR 951 -
distinguished. 
c 
D 
E 
!TI Ltd. v. Siemens Public Co111111u11ications Network Ltd. 
(2002) 5 SCC 510 : 2002 (3) SCR 1122 - held needs 
re-consideration. 
Satpal P. Malhotra & Ors. v. Puneet Malhotra & Ors. 
Arbitration Appeal No. 12 of 2010 decided on 141h 
June, 2013 by the Delhi High Court ; SBP & Co. '" 
Patel Engineering Ltd. & Am: (2005) 8 SCC 618 : 2005 
(4) Suppl. SCR 688; Pandey & Co. Builders (P) Ltd. 
v. State of Bihar & Am: (2007) 1 sec 467 : 2006 (8) 
Suppl. SCR 997; Fuerst Day Lawsoi1 Ltd. v. Jindal 
Exports Ltd. (2011) 8 sec 333 : 2011 (11) SCR 1; 
Jamshed Hormu~ji Wadia v. Board of Trustees, Port of 
Mumbai & Am: (2004) 3 sec 214 : 2004 (1) SCR 483; 
P.S. Sathappan (dead) by Lrs. 1( Andhra bank Ltd. And 
Others (2004) 11 SCC 672 : 2004 (5) Sup11I. SCR 188; 
Arun Dev Upadhyaya v. Integraied Sales Service Ltd. 
and Am: 2016 (9) SCALE 427 - referred to. 
Case Law Reference 
F 2003 (1) SeR 951 
2002 (3) SCR 1122 
distinguished 
held needs 
Para 15 
G 
H 
2005 (4) Suppl. SCR 688 
2006 (8) Suppl. SCR 997 
2011 (11) SCR 1 
2004 (1) SCR 483 
2004 (5) Suppl. SCR 188 
2016 (9) SCALE 427 
re-consideration 
Para4 
referred to 
Para 22 
referred to 
Para4 
referred to 
Para4 
referred to 
Para4 
referred to 
Para 20 
referred to 
Para 26 
MAHANAGAR TELEPHONE NIGAM LTD. v. MIS. APPLIED 
229 
ELECTRONICS LTD. 
CJV!L APPELLATE JURISDICTION : Civil Appeal No. 11584 
A 
of2016. 
From the Judgment and Order dated 28.07.2014 of the High Court 
ofDelhi inC.M.No.15530of2013. 
Neeraj Kishan Kaul, ASG, Saket Sikri, Ajay Pal, 
Ms. N. Annapoorani, Advs. for the Appellant. 
B 
Arun Kr. Varma, Sr. Adv., Puneet Singh Bindra, Ashish Joshi, 
Advs. for the Respondent. 
The Judgment of the Court was delivered by 
DIPAK MISRA, J. I. Leave granted. 
2. The present appeal, by special leave, calls in question the legal 
tenability of the order dated 28'" July, 2014 passed by the High Court of 
Delhi wherein a Division Bench in CM No. 15530 of2013 placing rel

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