On January 31, 2023, the Division Bench of the High Court of Gujarat at Ahmedabad in the case of, Pahal Engineers v. The Gujarat Water Supply and Sewerage Board, held that a claim filed under the Arbitration and Conciliation Act, 1996 (“Act”) cannot be dismissed merely on the ground that the Statement of Claim was not verified in terms of Order VI Rule 15 of the Code of Civil Procedure, 1908 (“CPC").
Whether a Statement of Claim can be dismissed on the ground that the same is not verified in terms of Order VI Rule 15 of the CPC and whether CPC would apply to pleadings in arbitration proceedings?
This Judgment while reiterating that arbitration proceedings are not governed by the CPC, has provided much needed clarity in arbitrations as parties, as a matter of practice, tend to apply the procedure under the CPC while filing pleadings, including the verification clause in terms of Order VI Rule 15 of the CPC. Consequently, in the absence of such verification clause, a preliminary objection is usually taken qua the Statement of Claim not being in compliance with CPC. This Judgment puts such an objection to rest and clarifies that a Statement of Claim cannot be dismissed merely on the ground that the same is not in compliance with Order VI Rule 15 of the CPC.
Please find attached a copy of the judgment.
This update has been contributed by Namitha Mathews (Partner) and Poorva Pant (Senior Associate).
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