2011 (3) KCCR 2300
High Court of Karnataka
ARAVIND KUMAR
S.M. Suparies
Versus
The Karnataka Bank Ltd
MISCELLANEOUS FIRST APPEAL NO.2827 OF 2003 (CPC)
Decided on: 27-08-2010
Arbitration and Conciliation Act - Jurisdiction - Sec.2(e), Sec.42 - The judgment discusses the interpretation of Sec.2(e) and Sec.42 of the Arbitration and Conciliation Act, 1996, and the jurisdiction of the Principal Civil Court. The court considered the applicability of the Act, the definition of 'Court,' and the exclusion of certain courts. The judgment also refers to relevant case laws and their applicability to the present case.
Fact of the Case:
An execution petition was filed before the Principal District Judge, Shimoga, which was contested by the judgment debtors. Subsequently, an application was filed to set aside the sale, which was dismissed by the Trial Court. The appeal was made against this order.
Finding of the Court:
The Court found that the application filed under Order 21 Rule 90 was maintainable, and the execution petition before the Principal District Judge, Shimoga, was also maintainable. The order passed by the executing Court was confirmed, and the appeal was dismissed.
Issues: The issues considered by the Court included the maintainability of the application filed under Order 21 Rule 90, the jurisdiction of the Principal District Judge, Shimoga, to entertain the execution petition, and the validity of the order passed by the executing Court.
Ratio Decidendi: The Court held that the application filed under Order 21 Rule 90 was maintainable, and the execution petition before the Principal District Judge, Shimoga, was also maintainable. The judgment discussed the interpretation of relevant provisions of the Arbitration and Conciliation Act, 1996, and the jurisdiction of the Principal Civil Court.
Final Decision: The appeal was dismissed, and the order passed by the executing Court in Ex.No.17/2000 dated 16-12-2002 was confirmed.
1. This appeal by the 1st Judgment Debtor is against an order passed on I.A No.I in Execution Case No.17/2000 by the Principal District Judge, Shimoga, dated 16.12.2002.
2. On 31.7.1999, an award came to be passed by the arbitrator and in order to have the fruits of the award, claimant filed an execution petition in Ex. Case No.17/2000 before the Principal District Judge, Shimoga. The Registry of the office of the District Judge, Shimoga, raised an office objection under two grounds:
i) Under Sec.2(e) of the Arbitration and Conciliation Act, 1996 “Court” means the Principal Civil Court of original jurisdiction in a District and as such execution petition was not maintainable.
ii) Further, under sec.42, it is clearly stated that where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that court and in no other Court.
3. On raising these queries, Registry noted that Principal District Judge, Shimoga, has no jurisdiction to adjudicate the execution petition and accordingly, it was posted before the Court. By order dated 14.11.2000, the Principal District Judge kept open the point regarding jurisdiction and ordered notice on judgment debtors.
On service of notice Judgment Debtors 1 and 2 have appeared and contested the execution petition.
4. On 9.8.2001, Principal District Judge has issued sale notice, pursuant to which, two properties were sold at spot. Court auction/sale was conducted on 3.8.2002.
5. On 19.10.2002, an application came to be filed under Order 21 Rule 90 of CPC by the 1st judgment debtor represented by its proprietrix, who is also the wife of the 2nd judgment debtor to set aside the sale contending there were certain irregularities in the sale. The said application came to be resisted by the decree-holder. Trial Court after considering rival contentions, by its order date 16.12.2002 dismissed the application, which order is assailed in this appeal.
6. Heard the learned advocates appearing for the parties.
7. Sri. Venkatachala learned counsel appearing for the appellant first J. Dr would contend that Principal District Judge did not have the jurisdiction to entertain the execution petition and the objection raised by the office ought to have been upheld in view of Section 2(e) read with Section 42 of the Arbitration and Conciliation Act, 1996. He would submit that execution petition ought to have been rejected or ought to have been returned for being presented before the Court having jurisdiction. He would elaborate his submission by contending that reading of Section 2(e) would clearly establish that Court having jurisdiction to entertain a suit of original jurisdiction would be the Court which would be entitled to consider and adjudicate an application filed by the claimant for execution of a decree. He would further contend that in the instant case execution petition ought to have been filed before Principal Civil Judge, (Sr.Dn) Shimoga since the said Court has the jurisdiction to try a original suit of this nature. In support of his submission he relies upon the judgment of the Hon’ble Apex Court in Bharat Coking Coal Ltd. Vs. M/s. Annapurna Construction case reported in AIR 2008 S.C. 2028 and also the judgment of the Delhi High Court reported in AIR 1970 DELHI 14 (Virendra Saigal, Vs. M/s. Sumatilal Jamnalal) and seeks for allowing of the appeal and setting aside the order passed by the executing Court.
8. Per contra Sri.K.V.Shyamaprasad learned counsel appearing for the respondent decree holder would support the order passed by the executing Court and contends by reading of Section 2(e) of the Arbitration Act, 1996 it would emerge that it is the Principal Civil Court of the District which has jurisdiction to try execution petition and when it is read with reference to the
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