Section 9 Not Res Judicata For Section 17 Application When Withdrawal Is Conditional: Delhi High Court Dismisses Section 37(2)(B) Application
Live LawThe Delhi High Court bench comprising Justice Manoj Kumar Ohri held that the Section 9 application under Arbitration and Conciliation Act, 1996 cannot act as res judicata for Section 17 application when the withdrawal of Section 9 application is conditional between the parties. Feeling aggrieved, DTC approached the Delhi High Court and filed Section 37 application challenging this order, asserting that TML's withdrawal of the Section 9 petition estops them from seeking similar relief under Section 17. DTC's main challenge rested on the grounds of constructive res judicata, contending that TML's unconditional withdrawal of its Section 9 petition amounted to conceding DTC's right to recover KMPKG penalty. The High Court underscored that DTC, having benefited from avoiding potential contemptuous action through a mutual agreement, could not argue that the withdrawal of Section 9 petition was unconditional and hence amounted to res judicata.