M/S ACARER METAL SANAYI TICARET A.S. VS. HIRA FERRO ALLOYS LIMITED & HIRA FERRO ELECTRO SMELTERS LIMITED
We as counsels for the Claimant, i.e., Acarer Metal, in the aforesaid Arbitration proceedings filed two Applications each under Section 23(3) of the Arbitration and Conciliation Act, 1996 read with Order VII Rule 14 of the Civil Procedure Code, 1908 seeking leave to file additional documents on record to supplement the claim of the loss in revenue and business opportunity.
It was emphasised in the applications that the documents were necessary for proper adjudication of the matter and it will not cause any prejudice to the Respondents in any manner. The Procedural rules issued by the Hon’ble Tribunal were referred which provided for such scenario. The rules provided that for parties to file any additional documents leave of the Tribunal would be required and as such no particular stage was provided.
It was emphasised that such rule was incorporated by the Hon’ble Tribunal as it was mindful of the fact that such bulky commercial arbitrations, may lead to a situation where the parties may need to file additional documents/ pleadings.
Additionally, we relied on the ratio of the Judgment as laid down by the Hon’ble High Court of Bombay before the Ld. Arbitral Tribunal in Writ Petition No. 8131 of 2023 in the case titled ‘Saloni Business Park Pvt Ltd & Ors. vs Trafigura India Private Limited and Another’ Hon’ble Court was faced with the question as to whether a claimant in an arbitration proceeding
The Hon’ble Court further referred to Section 19 of the Arbitration & Conciliation Act, 1996 which empowers the Tribunals to determine the rules of procedure. The discretionary power of the Tribunals to make its own rules & procedure was reaffirmed and intervention by Courts is restricted in arbitration Proceedings as it is beyond the ambit of the enactment of the Act.
In light of our above submissions, the Ld. Arbitrator allowed the Application while observing our submissions as valid, while observed that the documents are relevant to substantiate the claim filed under the Statement of Claim and relief sought on the account of purchase of contractual goods at escalated price resulting in financial loss due to non-delivery of contractual goods.
Ld. Arbitral Tribunal further relied on Sugandhi (Dead) by Legal Representatives & Anr. P. Rajkumar (2020) 10 SCC 706 & Robin Thapa vs Rohit Dora (2019) 7 SCC 359 wherein it was held that the Court should take a lenient approach when an application is made to produce additional documents. Further, it was held that the filing of the said documents would not change the issues of the present matter and it would be in the interest of justice to allow the same.