Tata Aia Lifer Insurance Company Ltd. v. Rajesh Gurbux Chugh And 6 Others

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION NOTICE OF MOTION NO. 1793 OF 2015 IN ARBITRATION APPLICATION (L) NO. 1879 OF 2014 Tata AIA Life Insurance Company Ltd.

...

Applicant

Versus

Mr. Rajesh Gurbux Chugh & Ors.

...

Respondents Mr. Vishal Tambat for the Applicant.

Mr. John Victor, Assistant Vice President (Legal) of the Applicant, present in person.

CORAM : S.J. KATHAWALLA, J.

DATED : 20 TH JANUARY, 2016 P.C. :

1.

Perused the above Notice of Motion and the Affidavit in support thereto. By the above Notice of Motion, the Applicant seeks the following reliefs : "(a) That the order dated 17 th February, 2015 passed by the learned Prothonotary and Senior Master rejecting the Arbitration Application be set aside and the Application be restored.

(b) That the time to remove objection and get the Application numbered be extended by two weeks or such time as this Hon'ble Court deems fit and proper".

2.

The above Arbitration Application was filed under Section 11 of the Arbitration and Conciliation Act, 1996 (the Act) on 2nd December, 2014. On 10th December, 2014 office raised certain objections. The Advocate for the Applicant failed and neglected to remove the office objections. In view thereof, on 17 th February, 2015 the Prothonotary and Senior Master granted time to the Advocate for

2 / 3 the Applicant upto 17 th March, 2015 to remove the office objections. The Prothonotary and Senior Master also clarified in his order that if the said objections are not removed on or before 17 th March, 2015, the Arbitration Application shall stand rejected under O.S. Rule 986.

3.

The Advocate for the Applicant again failed and neglected to remove office objections on or before 17 th March, 2015, because of which the above Arbitration Application stood dismissed. However, on 23 rd March, 2015, the Advocate for the Applicant went to the concerned department and made an endorsement on the docket of the Affidavit in support of the Arbitration Application that "all objections are complied herewith". The Advocate for the Applicant ought to have been aware that after the dismissal of the Arbitration Application, the question of him removing office objections does not arise unless the Arbitration Application is restored to file.

4.

Thereafter, on 26 th October, 2015, the Advocate for the Applicant filed the above Notice of Motion seeking restoration of the Arbitration Application i.e. seven months after the Arbitration Application was dismissed. The reasons set out in the Affidavit in support of the Notice of Motion seeking restoration of the Arbitration Application are absolutely unsatisfactory. The Notice of Motion therefore deserves to be dismissed. However, since the Arbitration Application is dismissed only because of the negligence on the part of the Advocate, if the same is not restored, the Applicant Company will suffer grave harm and prejudice. Keeping this fact in mind, the Notice of Motion is allowed in terms of prayer Clauses (a) and (b). Objections to be removed on or before 9 th February, 2016. Office to forward a

3 / 3 copy of this order to the Chairman of Tata AIA Life Insurance Company to look into the matter and take appropriate steps to ensure that such lapses do not recur in future.

5.

The Notice of Motion is accordingly disposed of. ( S.J.KATHAWALLA, J. )