LLP and individual partners can’t raise same issues, hit by Res Judicata: Calcutta HC

Last Updated on July 24, 2024 by News Desk

It was argued by the petitioner that since the challenge under section 34 is final, the interim challenges under section 37 should not exceed the scope of the final one

The HC examined whether the parameters that are mentioned under section 34 of the arbitration act applies to section 37 or not.

The court relied on the case of GLS Foils Products Pvt. Ltd. v FWS Turnit Logistics Park LLP, whereby it was held that the courts should not interfere with the interim measures granted by the tribunals if it found that they are well examined and thorough.

The court also said that the challenges made under section 37 don’t need to mirror the ones which are under section 34. Section 34 is titled as appealable Orders, whereas section 37 is referred to as an application.

Therefore, the arguments made by the petitioner were not maintainable.

Also, on the issue of separate legal identity, it was held by the court that, the LLP is a separate legal identity from its individuals but they will be bound by the decision of the appeal filed by the LLP as they were given an opportunity of being heard by the did not appear.

The principle of res judicata would be applied and it would prevent the individual partners from bringing up the same issue if the previous appeal was dismissed.

The appeal was dismissed.

Case Title:- Gaurav Churiwal vs Concrete Developers LLP and Ors.

Written By:- Shianjany Pradhan (@SHIANJANYPRADHAN)