IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
D.V.S.S.Somayajulu, Duppala Venkata Ramana, JJ.
Obulapuram Mining Company Pvt.Ltd - Appellant
Versus
R.K.Mining Private Limited - Respondent
C.R.P. Nos. 2183, 701, 1797 and 1254 of 2022
Decided On : 12-09-2023
Jurisdiction - Commercial Courts Act - Sec. 15, 16 - Summary
Fact of the Case:
The case involved a dispute over the jurisdiction of the Family Court-cum-7th Additional District Judge, Anantapuramu, to entertain an Execution Petition (E.P.) following the establishment of Commercial Courts in the State of Andhra Pradesh. The petitioner argued that the E.P., involving an arbitration award, should be executed before the Commercial Court, while the respondent contended that execution of an arbitration award can only be done before a regular Civil Court as per the provisions of Order 21 of the Code of Civil Procedure.
Finding of the Court:
The Court analyzed the provisions of the Commercial Courts Act, the Code of Civil Procedure, and relevant case law to determine the jurisdiction for executing the decree. It concluded that the Commercial Court has the jurisdiction to execute its own decree or a decree transferred to it, where the value is above the specified limit. The Court held that all actions taken in the E.P. after the establishment of the Commercial Court were void in law and directed the transfer of the E.P. to the Commercial Court, Vijayawada.
Issues: The core issue was the jurisdiction of the Family Court-cum-7th Additional District Judge, Anantapuramu, to entertain the Execution Petition following the establishment of Commercial Courts in the State of Andhra Pradesh.
Ratio Decidendi: The Court's decision was based on the interpretation of the Commercial Courts Act, the Code of Civil Procedure, and relevant case law. It emphasized the need for a purposive and meaningful interpretation to facilitate quick disposal of commercial cases, including execution applications for enforcing judgments passed.
Final Decision: The Court allowed the Civil Revision Petitions questioning the orders passed by the Family Court, Anantapuramu, after the establishment of the Commercial Court, holding them to be without jurisdiction. It directed the immediate transfer of the E.P. to the Commercial Court, Vijayawada, and allowed the parties to start the proceedings afresh from the specified date.
JUDGMENT
1. Is this Court conferring jurisdiction by a process of judicial legislation or is this Court merely "ironing out the creases" and clarifying the law is the question before this Court?
The issue of jurisdiction of the Family Court-cum-7th Additional District Judge, Anantapuramu, for entertaining the E.P.No.13 of 2016 in C.M.P.No.505 of 2012, as raised in C.R.P.No.2183 of 2022, is the core issue that is taken up at the outset with the consent of the learned counsel for the petitioner and the learned senior counsel appearing for the respondent.
2. Sri M. Radhakrishna, learned counsel appeared for the petitioner and Sri Challa Kodandaram Learned Senior Counsel, as instructed by Sri V. Srikantha Rao, learned counsel, appeared for the respondent. Both the learned counsel submitted arguments on the competency and jurisdiction of the Family Court-cum-7th Additional District Judge, Ananthapuramu, for passing orders in E.A.No.8 of 2022 in E.P.No.13 of 2016 in C.M.P.No.505 of 2012, dtd. 5/5/2022 due to the establishment of the Commercial Courts in the State of Andhra Pradesh.
3. Sri M.Radhakrishna, learned counsel for the petitioner, submitted that a sole arbitrator was appointed to decide the disputes between the parties and he passed an Award, dtd. 13/10/2015, awarding certain amounts. The Award was challenged by filing an application under Sec. 34 of the Arbitration and Conciliation Act, 1996. Pursuant to further litigation, the matter reached the Commercial Court, Bellary. The litigation with regard to the said Award is still pending. In the meanwhile E.P.No.13 of 2016 was filed by the Decree Holder before the Principal District Judge, Anantapuramu, for bringing to sale the properties belonging to the Judgment Debtor. The same was transferred on 27/8/2019 to the Family Court, Anantapuramu, where the matter is now pending. Orders have been passed bringing the property for sale. The present CRP is filed questioning the orders, dtd. 5/5/2022, in E.A.No.8 of 2022 in E.P.No.13 of 2016, by which the Court ordered the issuance of sale certificate to the Decree Holder.
4. The essential objection that is now raised before this Court is that after the Commercial Courts Act, 2015 came into force this Award can only be executed before the Commercial Court and that the regular District Judge did not have the jurisdiction to entertain this case. The value of the Award is Rs.32.86 crores along with interest etc. Therefore, learned counsel for the petitioner contends that this Award has to be executed before the Commercial Court only and not before the Principal District Judge, Anantapuramu or the transferee Court, the Family Court-cum-7th Additional District & Sessions Court, Anantapuramu. Learned counsel Sri Radhakrishna points out that it is an undisputed fact that the Award was passed on 13/10/2015 and the Commercial Courts Act came into force on 23/10/2015. He points out that initially by virtue of G.O.Ms.No.74, dtd. 10/6/2016, the Principal District and Sessions Courts in all the districts of the State of Andhra Pradesh were designated as Commercial Courts. But on 16/5/2019 by virtue of G.O.Ms.No.78, two Special Commercial Courts were constituted in the cities of Visakhapatnam and Vijayawada for the entire State of Andhra Pradesh. As far as the disputes pertaining to Anantapuramu are concerned they are under the jurisdiction of Commercial Court, Vijayawada, as per this G.O. The contention of the learned counsel, therefore, is that it is the Commercial Court, Vijayawada, alone that can entertain this Execution Petition and / or pass further orders.
5. The contention of the respondents on the other hand, as far as jurisdiction is concerned, is that the Commercial Courts do not have the power to execute an Arbitration Award. Learned senior counsel contends that the execution of an Award, even if the same relates to a dispute of commercial value and commercial industry, can only be before a regular Civil Court as per the provisions of Ord
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