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The Supreme Court on Thursday decided that an arbitral award can be straightway filed and executed in the court where the assets are located without obtaining a transfer decree from the court which have original jurisdiction over those arbitral proceedings.
Even in the history most of the High Courts have different opinions about this issue, they had ruled that an execution can be filed in only that court where the assets of the debtor are located.
The appeal filed by Sundaram Finance Limited v. Abdul Samad and another was in the front of the bench consisting of Justice J Chelameswar and Justice S.K. Kaul which was on the decision of the trial court which said to first file an execution proceedings before the court of competent jurisdiction, then after getting a decree of transfer file a execution petition at the place where the assets are located.
The apex court particularly mentioned that the High Court of Madhya Pradesh and Himachal Pradesh are of a view that the decree of transfer must be obtained before filing the execution petition before the court where the assets are located, apex court also gets agreed by the reasoning of the courts and said the courts had mixed the provisions of the Code of Civil Procedure and the act. Adding in the statement they said that the High Courts relied on the Section-42 of the CPC, which only applies in the situation where the application is filed under Part- I, and also the Section-32 was forgotten by the courts.
And hence they ruled that the enforcement of an award through it’s execution can be filed in any court where such decree can be executed and no extra requirement is necessary.
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