Proceedings Under Section 9 Of A&C Act Cannot Be Used For Enforcement Of The Conditions Of A Contract: Gujarat High Court

Proceedings Under Section 9 Of A&C Act Cannot Be Used For Enforcement Of The Conditions Of A Contract

Case: Kanhai Foods Ltd versus A and HP Bakes

Coram: Justices N.V. Anjaria and Samir J. Dave

Case No.: R/First Appeal No. 2638 Of 2021

Court Observation: “The contentions raised by the appellant with regard to the enforcement of conditions of the franchisee agreement and the applications of the parties arising therefrom, are the issues to be decided and resolved in the arbitration proceedings. These issues are in the nature of arbitrable disputes, to be tried and decided by the Arbitral Tribunal. Proceedings of section 9 are not meant for enforcement of conditions of the contract as it could be done only when the rights of the parties are finally adjudged or crystlised by the Arbitrator. Section 9 proceedings which are for interim measures, cannot be converted into the proceedings where a party may seek indirectly the final relief.”

“The nature of conditions incorporated in the franchisee agreement, its scope and import in law and its applicability, are all questions to be examined by the arbitrator. The question of determinability or otherwise of the franchisee agreement in respect of which the parties have adverted to the detailed submissions, is also a merit aspect and an arbitrable issue.”

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