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2014 Supreme(SC) 662

R. M. LODHA, KURIAN JOSEPH, ROHINTON FALI NARIMAN
State of West Bengal – Appellant
Versus
Associated Contractors – Respondent


Judgement Key Points

The legal document clarifies the scope and interpretation of jurisdictional provisions under the Arbitration and Conciliation Act, 1996. The primary focus is on defining what constitutes a "court" for the purposes of Part-I of the Act, specifically under Section 2(1)(e) and Section 42. It establishes that only the Principal Civil Court of original jurisdiction in a district or a High Court exercising original civil jurisdiction within the State qualifies as a "court" under these provisions (!) (!) .

The document emphasizes that applications made to authorities outside these specified courts, such as the Chief Justice or their delegates under Sections 11 and 11(6), are not considered applications to "courts" within the meaning of Section 42 (!) (!) . Consequently, Section 42's applicability is limited to applications filed in the designated courts—namely, the Principal Civil Court or the High Court exercising original jurisdiction—whether before, during, or after arbitral proceedings (!) (!) .

It also clarifies that the scope of Section 42 extends to all applications related to arbitration agreements, including those made after the conclusion of arbitral proceedings, provided they are under Part-I of the Act (!) (!) . However, applications under Sections 8 and 11, which are made to authorities like the Chief Justice or designated officials, are outside the scope of Section 42 because these authorities are not "courts" as defined (!) (!) .

Furthermore, the document states that the Supreme Court, even if it retains seisin over arbitration proceedings, does not qualify as a "court" for the purposes of Section 2(1)(e) or Section 42 (!) (!) . This is due to the exhaustive nature of the definition and the specific legislative intent to restrict the application of Section 42 to designated courts only (!) (!) .

In summary, the legal principles outlined establish that the jurisdiction under the Arbitration Act is strictly confined to designated courts, and authorities like the Chief Justice or their delegates do not fall within this jurisdictional scope. Applications made outside these courts are outside the purview of Section 42 and do not preclude subsequent applications in the proper courts.


JUDGMENT

R.F. Nariman, J.

1. This matter has come before a three Judge Bench by an order of reference of a Division Bench of this Hon’ble Court dated 7th April, 2010. The referral order reads thus:

“In this appeal, the question that arises for decision is which Court will have the jurisdiction to entertain and decide an application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter for short 'the Act').

2. Mr. Bikas Ranjan Bhattacharya, learned senior counsel appearing for the appellants cited the judgments in the case of National Aluminium Co. Ltd. Vs. Pressteel & Fabrications (P) Ltd. And Anr. (2004) 1 SCC 540, Bharat Coking Coal Ltd. Vs. Annapurna Construction (2008) 6 SCC 732, Bharat Coking Coal Ltd. Vs. H.P. Biswas and Company (2008) 6 SCC 740 and Garhwal Mandal Vikas Nigam Ltd. Vs. Krishna Travel Agency (2008) 6 SCC 741 in support of his submission that it is only the Principal Civil Court, as defined in Section 2(e) of the Act, which can entertain and decide an application under Section 34 of the Act for setting aside the Award.

3. Mr. Pradip Ghosh, learned senior counsel appearing for the respondent on the other hand submitted that in the present c


















































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