There is no conflict between Arbitration and Conciliation Act, 1996 and the provisions of the West Bengal Public Land (Eviction of Unauthorised Occupants) Act, 1962 – Rolta Infrastructure and Technology Services Pvt. Ltd. Vs. Department of Information Technology and Electronics, Government of West Bengal – Calcutta High Court
Hon’ble Calcutta High Court:
(i) The Court proceeds to test the facts on each of these three planks for considering grant or refusal of interim relief. The foundational requirement of an application filed under section 9 of the Act is preservation of the subject-matter of dispute in arbitration [section 9(1)(ii)(a)]).
(ii) Section 9 allows such intervention prior to initiation of arbitration so that none of the parties can obliterate the subject matter of the arbitration agreement in the meantime.
(iii) Apart from the power conferred on a Court in proceedings under section 9 of the Act, there is no conflict between the 1996 Act and the provisions of The West Bengal Public Land (Eviction of Unauthorised Occupants) Act, 1962.
(iv) Both the statutes operate in independent fields and the 1996 Act certainly does not contemplate obliteration of the provisions of the 1962 Act even where proceedings may have been instituted under the former. Indeed, a non-obstante clause of a State Act cannot override a later Central Act operating in a different field altogether.
(v) The initiation of SARFAESI proceedings in respect of the sub-leased land is not relevant for the purpose of an application under section 9 of the 1996 Act as the mortgage was created only after obtaining the NOC from the respondent and the SARFAESI proceedings is also not a subject matter of the arbitration under the sub-lease agreement dated 04.07.2008. It is also relevant that SARFAESI proceedings can only be agitated before a statutory forum which is different to that of a Court hearing an application under section 9 of the 1996 Act.
(vi) In the present case however, the application under section 9 of the 1996 Act emanates from the arbitration agreement between the parties where the referral Court has been conferred with plenary powers to grant interim measures of protection for preservation of the subject matter of arbitration.
