Asia & Australia

April 21, 2017

Bombay HC Judge Imposes Cost Of Rs 184 For Petition Withdrawal


Bombay High Court

In an order passed on April 18, Bombay High Court Judge GS Patel imposed a cost of Rs 184 in an Arbitration Petition.

Justice Patel was hearing a case in which Advocate Cyrus Ardeshir, who was appearing for petitioners in an arbitration petition filed in 2017, sought liberty to file a fresh petition and withdraw the earlier one. The reason given for such action was that Ardeshir found a large volume of material relevant to the case that had earlier escaped his attention.

Ardeshir argued that amending the existing petition would cause substantial inconvenience to the parties as well as the court.

However, Ankit Lohia, appearing for the respondents, opposed the move stating that no notice was served on his client and that the grounds for withdrawing a suit under Order 23 of the CPC were not made out.

Justice Patel rejected this argument stating that the sufficiency of ground in clause (b) of Order 23 Rule 3 was a matter between the petitioner and the court. Moreover, the judge stated the fact that the provisions of the CPC would not apply to a petition filed under Section 9 of the Arbitration and Conciliation Act.

Therefore, the judge allowed the petition to be dismissed as withdrawn and granted leave to file a fresh petition. Thereafter, he imposed a cost of Rs 184 on the petitioners.

The judge concluded saying, “Now the Respondent presses for costs. Costs must, however, be reasonable. Since today is 18th April and having due regard to the merits of the opposition, it is reasonable to award costs in the sum of Rs 184. These are payable by account payee cheque only by the Advocates for the Petitioners to the Advocates for the Respondents. The costs are to be paid within six months from today and are subject to deduction of tax at source, if applicable.”

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