Johnson Stephen vs. M/S.Mcees Trading

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE MARY JOSEPH FRIDAY, THE 05TH DAY OF MARCH 2021 / 14TH PHALGUNA, 1942 Arb.A.No.54 OF 2020 AGAINST THE ORDER/JUDGMENT IN CMA(Arb) 766/2020 OF PRINCIPAL SUB COURT,ERNAKULAM APPELLANT/S: JOHNSON STEPHEN AGED 50 YEARS S/O.LATE P.A.STEPHEN, THE THEN PARTNER, M/S.MCEES TRADING, DOOR NO.34/767 A, GESIMA, KRRA-78, KANNANTHODATH ROAD, EDAPPALLY P.O., KOCHI-682024, PRESENTLY RESIDING AT PALLICKA HOUSE, KOTTAMAM, KALABATTUPURAM ROAD, KALADY, ERNAKULAM DISTRICT, PIN-683574. BY ADVS. SRI.JOHN MATHEW (THEREZHATH) SRI.N.N.SUGUNAPALAN (SR.) RESPONDENT/S: 1 M/S.MCEES TRADING DOOR NO.34/767 A, GESIMA, KRRA-78, KANNANTHODATH ROAD, EDAPPALLY P.O., KOCHI- 682024. 2 ANOOP UNNIKRISHNAN, THE THEN PARTNER, M/S.MCEES TRADING, DOOR NO.34/767 A, GESIMA, KRRA-78, KANNANTHODATH ROAD, EDAPPALLY P.O., KOCHI-682024. 3 SUNIL KUMAR T.K., THE THEN PARTNER, M/S MCEES TRADING, DOOR NO.34/767 A, GESIMA, KRRA-78, KANNANTHODATH ROAD, EDAPPALLY P.O., KOCHI-682024. 4 THE AXIS BANK, EDAPPALLY BRANCH, VITHAYATHIL BUILDING NELSON MANDELA ROAD, EDAPPALLY, ERNAKULAM, PIN- 682024. Arb.Appeal No. 54 of 2020 -:2:- 5 THE FEDERAL BANK LTD., ERNAKULAM BYE PASS BRANCH, HIGHWAY HEIGHTS, N.H.BYPASS PUTHIYA ROAD, ERNAKULAM, PIN-682032. 6 BANK OF BARODA, PALARIVATTOM BRANCH, 1ST FLOOR, 34/1860 A, PALARIVATTOM-EDAPPALLY ROAD, MAMANGALAM, EDAPPALLY, ERNAKULAM, PIN-682565. R1-3 BY ADV. SRI.VIZZY GEORGE KOKKAT R1-3 BY ADV. SRI.C.HARIKUMAR R1-3 BY ADV. SRI.V.V.SADANANDAN (SREEMOOLANAGARAM) R1-3 BY ADV. SRI.RENJITH RAJAPPAN R4 BY ADV. SRI.PREMCHAND M. R5 BY ADV. SRI.BINOY DAVIS R5 BY ADV. SRI.REJI GEORGE THIS ARBITRATION APPEALS HAVING BEEN FINALLY HEARD ON 04- 03-2021, THE COURT ON 05-03-2021 DELIVERED THE FOLLOWING:

Arb.Appeal No. 54 of 2020 -:3:- JUDGMENT Dated this the 5th day of March, 2021 The main question to be considered in this appeal is whether the order passed by the Commercial Court (Principal Sub Court) at Ernakulam on 22.12.2020 in CMA (Arb) No.766 of 2020, dismissing the application and declining the reliefs sought by the applicant under Section 9 of the Arbitration and Conciliation Act, 1996 is legal, proper and correct. The applicant had sought for the following reliefs in CMA (Arb) No.766 of 2020: “I. To appoint a Receiver under Section 9(1) (II)(d) of the Arbitration and Conciliation Act, 1996 to take the possession and for the administration and management of the assets and the business of the 1st respondent firm, to realize the income from the business of the firm, to preserve the properties of the subject firm and also to maintain its accounts for the time being till the appointment of the Arbitrator. II. To Freeze the relevant bank accounts of the subject firm maintained with the 4th respondent Bank of Edppally Branch as A/c No.919030046197357 of IFSC Code UTIB0003197, 5th respondent Bank of Ernakulam By-pass Branch as A/c No.16085500000065 of IFSC Code FDRL0001608 and the 6th respondent Bank as A/c

Arb.Appeal No. 54 of 2020 -:4:- No.37450200000025 of IFSC Code BARBOPALARI and to interdict the respondent banks 4, 5 and 6 from transferring or disbursing any amounts lying in those subject accounts by the respondents 2 and 3 and to maintain the status quo with respect to those subject bank accounts for the time being till the appointment of the arbitrator. III. To pass an Ad interim order of Injunction restraining the respondents 2 and 3 from alienating, encumbering and from dealing with the assets of the 1st respondent firm in any manner prejudicial to interest of the Applicant till the appointment of the Arbitrator. IV. Pass such other orders which this Hon'ble Court may deem fit and necessary for the facts and circumstances of the case.”