The Calcutta High Court, in Binoy Trading Co. and Another v. Tata Motors Finance Limited, [AP 289 of 2023 and AP 368 of 2023 decided on 07.08.2023], held that the Court that has granted the interim relief regarding an Arbitral Proceeding will have the exclusive jurisdiction to deal with the subsequent applications arising out of the same Arbitral Proceedings.
FACTS
The present petition is filed by M/S Binoy Trading Company (hereinafter referred to as “Petitioner”) under Section 34 of The Arbitration and Conciliation Act, 1996 (“the A&C Act”), for the setting aside of two Arbitral Awards dated 04.08.2022 and 01.11.2022 (hereinafter referred to as the “Impugned Awards”) which were passed against the Petitioner, and in favour of Tata Motors Finance Limited (hereinafter referred to as “Respondent or Award Holder”).
The Petitioner was ordered to pay the Respondent Rs. 82,91,536.50/- vide Impugned Award dated 01.11.2022, against which the Respondent filed for an interim relief under Section 9 of the A&C Act before the Ld. City Civil Court on 29.12.2022.
The Ld. City Civil Court passed an interim order authorising the Respondent to take the necessary steps with regard to the Petitioner’s vehicle and it would remain in the Respondent’s custody.
The Petitioner further filed another application on 04.04.2023, as Miscellaneous Case No 7612 of 2022 for the dismissal of the direction in the interim order.
The Petitioner filed the present petition on 28.04.2023 to set aside the Impugned Awards.
ISSUE BEFORE THE CALCUTTA HIGH COURT
- Whether the present petition is maintainable when the interim application has already been filed before the Ld. City Civil Court?
CONTENTIONS OF THE PARTIES
The Petitioner relied on Shri Sushanta Malik v. Srei Equipment Finance Limited (AIR 2015 Cal 335) and contended that Ld. City Civil Court does not have the pecuniary jurisdiction to entertain an application under Section 34 of the A&C Act as it is not a principal Civil Court of Original Jurisdiction.
The Petitioner claimed that the Impugned Award was valued in excess to Rs. 10 lakhs.
The Petitioner submitted that hence, the present applications can only be filed before the Calcutta High Court.
The Respondent contended that the present Petition is not maintainable under the provisions of Section 2(1)(e) and Section 42 of the A&C Act. Further, it shall be filed before Ld. City Civil Court as the Petitioner had filed the Miscellaneous Application.
It was claimed that the Impugned Award was valued in excess of Rs.85 lakhs
The Respondent further relied on the Notification dated 20.03.2022 issued by the Judicial Department, Government of West Bengal, regarding the pecuniary jurisdiction of the City Civil Court and the Calcutta High Court.
DECISION AND FINDINGS
The Calcutta High Court observed the provisions of Section 2(1)(e) and Section 42 of the A&C Act. It was held that the Sushanta Malik was delivered on 08.09.2015, whereas, the Commercial Courts Act, 2015 was deemed to come into force on 23.10.2015.
The High Court further observed that irrespective of the amount of the claim, the Notification dated 20.03.2020 has fixed the pecuniary limit and both the City Civil Court as well as High Court had the pecuniary jurisdiction to entertain the present petition.
It was held that Section 42 of the A&C Act mandates that one Court alone shall have jurisdiction over the arbitral proceedings and no other Court shall have jurisdiction to entertain any application arising out of the same arbitral proceedings. Hence, the Ld. City Civil Court would have the exclusive jurisdiction to entertain the present petition and dismiss the petition.
AMLEGALS REMARKS
The Calcutta High Court has upheld that once any application pertaining to an Arbitration Proceeding has been filed in a Court, it would have an exclusive jurisdiction to deal with the subsequent applications filed arising out of the same proceedings.
-Team AMLEGALS, assisted by Ms. Jeel Pathak (Intern)
For any query or feedback, please feel free to get in touch with rohit.lalwani@amlegals.com or himanshi.patwa@amlegals.com
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