IMPORTANT POINT
Jurisdiction of Commercial Courts – All applications or appeals arising out of arbitration under provisions of Arbitration and Conciliation Act, 1996, other than international commercial arbitration, shall be filed in and heard and disposed of by Commercial Courts, exercising territorial jurisdiction over such arbitration where such commercial courts have been constituted – There cannot be two Fora with respect to different commercial disputes.

JUDGMENT

M.R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 12.04.2022 passed by the High Court of Orissa at Cuttack in respective writ petitions, by which, the Division Bench of the High Court has dismissed the respective writ petitions in which the appellants herein – original writ petitioners challenged a notification dated 13.11.2020, issued by the State of Odisha through its Principal Secretary, Law Department in establishing the Court of the Civil Judge (Senior Division) as Commercial Courts for the purposes of exercising jurisdiction and powers under the Commercial Courts Act, 2015, the original writ petitioners have preferred the present appeals.

2. In exercise of powers conferred by Section 3 and sub-section (1) of Section 9 read with Section 10 of the Odisha Civil Courts Act, 1984 and Section 30 of the Commercial Courts Act, 2015 (hereinafter referred to as the Act, 2015), the State Government on the recommendation of and after consultation with the High Court of Orissa has established the Courts of Civil Judge (Senior Division) as Commercial Courts for the purposes of exercising the jurisdiction and powers under the Act, 2015.

2.1 The original writ petitioners – appellants herein initially filed the proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Arbitration Act, 1996) in the Court of learned District Judge. However, on establishment of the Commercial Courts under the aforesaid notification, the said proceedings were transferred to the Commercial Court i.e., the Court of Civil Judge (Senior Division) [designated as Commercial Court]. Therefore, the appellants herein challenged the aforesaid notification and designating the Courts of Civil Judge (Senior Division) as Commercial Courts under the Act, 2015 before the High Court by way of present writ petitions. It was the case on behalf of the appellants – original writ petitioners that constituting and/or designating the Courts of Civil Judge (Senior Division) as Commercial Courts and to exercise the powers under the Commercial Courts Act would be in conflict with the provisions of Section 2(1)(e) of the Arbitration Act, 1996. It was the case on behalf of the appellants herein that under Section 2(1)(e) of the Arbitration Act, 1996, only the Principal Civil Court of original jurisdiction in a district (Court of Principal District Judge) shall be the “Court” for the purpose of deciding the disputes under the Arbitration Act, 1996 and in case of an arbitration it does not include any Civil Court of a grade inferior to such Principal District Judge. Therefore, it was the case on behalf of the appellants that to confer the jurisdiction upon the Court of Civil Judge (Senior Division) to exercise the powers under the Commercial Courts Act including the proceedings under the Arbitration Act, 1996 would be contrary to Section 2(1)(e) of the Arbitration Act, 1996, which is the Special Act. By the impugned common judgment and order the High Court has dismissed the said writ petitions which has given rise to the present appeals.

3. Ms. Uttara Babbar, learned counsel has appeared on behalf of the respective appellants – original writ petitioners and Shri Gaurav Aggarwal, learned counsel has appeared as Amicus Curiae appointed by the Court.

3.1 Ms. Babbar, learned counsel appearing on behalf of the appellants has vehemently submitted that there is a conflict between Section 3 of the Act, 2015 and Section 2(1)(e) of the Arbitration Act, 1996. It is submitted that Section 2(1)(e) of the Arbitration Act, 1996 provides that the Principal Civil Court of original jurisdiction in a district shall be the “Court” in the case of an arbitration other than international commercial arbitration. It is submitted that Section 2(1)(e) of the Arbitration Act, 1996 specifically provides that it does not include any Civil Court of a grade inferior to such Principal Civil Court. It is submitted that