IMPORTANT POINT
During pendency of petition under Section 34 of the Arbitration and Conciliation Act to set aside the award in a Court having jurisdiction, another Court which also has jurisdiction over the subject matter cannot entertain application under Section 36 to execute the award.

JUDGMENT

D.P. Wadhwa, J.-We grant leave to appeal.

2. This appeal is directed against judgment dated 29/30.7.1999 of the High Court of Karnataka given in revision filed by the respondent whereby High Court set aside the orders dated 24.5.1999 and 21.6.1999 of the Principal District Judge, Raichur. By order dated 24.5.1999 the Principal District Judge, Raichur issued warrants of attachment of moveable properties of the respondent as described in the application for execution filed by the appellant. By order dated 21.6.1999 the learned Principal District Judge dismissed the application of the respondent praying for lifting of the attachment already issued against it.

3. Appellant is a building contractor. Respondent is a Government company of the Government of Karnataka under the Companies Act, 1956. Respondent awarded the contract for construction of a school building at Hatti in District Raichur to the appellant. An agreement dated 9.3.1995 was duly entered into. Clause 35 of the agreement contained the arbitration clause. Disputes and differences having arisen appellant moved the Chief Justice of the High Court of Karnataka under Section 11 of the Arbitration and Conciliation Act, 1996 (for short the Act ) for appointment of an arbitrator. The application was allowed and Mr. H.S. Bhat, Chief Engineer (retired), who was resident of Bangalore was appointed as an arbitrator with a direction to complete the arbitration proceedings and to submit his Award within four months. Arbitration proceedings were held at Bangalore where also the Award dated 28.8.1998 was made. Arbitrator awarded some of the claims of the appellant while disallowing a few others. Respondent filed application for setting aside the Award by making an application under Section 34* of the Act in the court of Principal City Civil Judge, Bangalore. While this application was pending appellant as decree-holder filed an application for execution of the Award in the court of Principal District Judge, Raichur. It was on this application that orders for attachment of properties of the respondent were issued. When respondent sought lifting of its attachment by filing an application, the same was dismissed. Aggrieved respondent went to the High court in revision. High Court allowed the revision of the respondent and set aside the two orders of the Principal District Judge, Raichur which we have mentioned above. Now it is the appellant who has come to this Court.

4. It would appear that by filing the execution application in the court at Raichur appellant wanted to enforce the Award under Section 36** of the Act. When the court at Raichur issued warrants of attachment it was not aware of pendency of the application of the respondent under Section 34 of the Act in the court at Bangalore. Appellant had made no mention in his application about the pendency of the proceedings at Bangalore. However, when the respondent filed application before the Principal District Judge, Raichur for lifting of the order of attachment it was brought to his notice the pendency of the application under Section 34 of the Act for setting aside the Award. Now, the learned Principal District Judge, Raichur held that Principal City Civil Court, Bangalore had no jurisdiction to entertain the application under Section 34 of the Act. On this premise he dismissed the application of the respondent and confirmed the order of attachment.

5. In support of his argument that court at Bangalore would have no jurisdiction Mr. Rajiv Dutta, learned counsel for the appellant, referred to a decision of this Court in Patel Roadways Limited, Bombay v. Prasad Trading Company1. In this case Patel Roadways Limited had its principal office at Bombay and branch offices at various other places. Prasad Trading Company entrusted certain consignments of goods of Patel Roadways Limited at its subordinate office in the State of Tamil Nadu for delivery at Delhi. The goods reached Delhi but in damaged conditions. Prasad Tradin