Sakarni Plaster India (P) Ltd vs. Classic Gypsum Industries Pvt Ltd
Background
Sakarni Plaster India had earlier obtained an interim arrangement from the Court against Classic Gypsum Industries in a commercial dispute governed by an arbitration agreement, and had separately filed a Section 11 petition (for appointment of an arbitrator) before the Court.
Decision Breakdown
The Court directed that the existing interim arrangement would continue only until the Arbitral Tribunal, once constituted, considered the matter itself. Once appointed, the arbitrator would treat the pending petition as a Section 17 application (for interim measures) and could continue, modify or vacate the interim protection based on the merits. The petition was disposed of on these terms, with all rights and contentions of both parties left open.
Lesson Learnt
When a court grants interim protection in a commercial dispute pending appointment of an arbitrator, that protection is provisional: the arbitrator, once appointed, has full power to review and even undo it based on the actual merits of the case.