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2007 Supreme(Bom) 521

2007(3) ALL MR 304
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
(FULL BENCH)
Dr. S. RADHAKRISHNAN, D. B. BHOSALE & V. K. TAHILRAMANI, JJ.
M/s. Fountain Head Developers- Appellant
Versus
Mrs. Maria Arcangela Sequeira (since deceased through LRs.)- Respondent
Arbitration Appeal No.14 of 2005
WITH Arbitration Appeal No.13 of 2005
WITH Appeal From Order No.1065 of 2005
WITH Appeal From Order No.526 of 2006
WITH Civil Revision Application No.100 of 2004
WITH Civil Revision Application No.121 of 2004
Decided on 12th April, 2007.
Advocates appeared
Arbitration Appeal No.14 of 2005 None for the Appellant.
Mr. JAYDEEP S. DEO, for Respondent Nos.1A, 1B, 2, 4 & 5.
Arbitration Appeal No.13 of 2005 Mr.R. D'SOUZA with Mr. S. G. KANTAK, Advocate General (State of Goa).
None for the Respondent.
Appeal From Order No.106S of 2005 Mr. A. A. KUMBHAKONI with Mr. A. M. KULKARNI, for the Applicant.
Mrs. NEETA KARNIK, for the Respondent.
Appeal From Order No.S26 of 2006 None for the Appellant.
None for the Respondent.
Civil Revision Application No.100 of 2004 Mr. P. M. ARJUNWADKAR i/b Mr. G. S. GODBOLE, for the Petitioner.
None for the Respondent.
Civil Revision Application No.121 of 2004 Mr. N. V. WALAWALKAR, Sr. Adv. with Mr. AMIT B. BORKAR, for the Appellant.
None for the Respondent.

Headnote:Arbitration and Conciliation Act, 1996 - Sections 2(1)(e) and 34 - Court - Principal Civil Court of original jurisdiction in a district - For purpose of a petition under Section 34 of Act - A District Court - Not includes any other Court inferior to District Court. - The principal civil Court of original jurisdiction in a district for the purpose of a petition under Section 34 of the Act of 1996 is a District Court and does not include any other Court inferior to the District Court.

D. B. BHOSALE, J.:- In view of a divergence of the views in two judgments of learned Single Judges of this Court, the first being in Cotton Corporation of India Ltd. Vs. Sharad Shetkari Soot Girni Niyamit, 2000(3) Mh.L.J. 96: [2000(2) ALL MR 46] and the second in Omni Bus Industrial Development Corporation of Daman, Diu, Dadra and Nagar Haveli Ltd. Vs. M. N. Dhanani (Arbitration Appeal No.1 of 2000) decided on 17th December, 2002, a reference was made to the Honble the Chief Justice by another learned Single Judge in the appeal under Arbitration Act No.3 of 2004 (New Arbitration Appeal No.14 of 2005) by the order dated 23rd March, 2004 alongwith a request to refer the matter to a larger bench. This Full Bench has been, accordingly, constituted by the Hon'ble the Chief Justice.

2. In Omni Bus Industrial Development Corporation, the learned Judge while dealing with the definition of "Court", under section 2(e) of the Arbitration and Conciliation Act, 1996 (for short the "Act of 1996"), has taken a view that the Court of Civil Judge, Senior Division, Goa being the Principal Court of Original Civil Jurisdiction, would be entitled to hear an appeal under section 34 of the Act of 1996, while in Cotton Corporation of India Ltd., another learned Single Judge has taken a view that the District Judge of a District and not the Civil Judge, Senior Division, would be the Principal Court of Original Civil Jurisdiction. This view was taken with reference to the provisions of section 8 of the Act of 1996. It is against this backdrop we have formulated the following question of law that is required to be addressed by us in this judgment:

"Whether it is the Civil Judge. Senior Division or the District Court which should be construed as being the Principal Court of Original Jurisdiction for the purpose of a petition under section 34 of the Arbitration and Conciliation Act, 1996."

3. We do not propose to make a reference to the factual matrix in detail and deal with the merits of each case, in this group of matters. However, it would be appropriate to state the background against which Arbitration Appeal No.14 of 2004 (i.e. Appeal under Arbitration Act No.3 of 2004) came to be filed in this Court. In this appeal the appellants had filed an application under section 9 of the Act of 1996 in the Court of the First Additional District Judge, North Goa at Panaji. The First Additional District Judge had granted ad-interim relief in favour of the appellants and issued notice to the respondents. The respondents upon being served with a notice filed their reply, inter alia, objecting to the jurisdiction of the Hon'ble District Judge in view of the judgment of this Court in Omni Bus Industrial Development Corporation. The learned Judge vide his judgment and order dated 9th March, 2004 upheld the objection and directed to return the application to the appellants for its presentation to an appropriate court having jurisdiction to entertain the said application. Feeling aggrieved by the order of the District Court dated 9.3.2004 the appellants filed appeal before this Court in which the present reference was made by the learned Single Judge vide order dated 24.3.2004. It appears that in view of the reference made by the learned Single Judge in Appeal under Arbitration Act No.3 of 2004, in other matters also similar orders were passed by the learned Single Judges and that is how this group has been placed before us for answering the reference.

4. We have heard all the learned counsel appearing for the parties only on the aforesaid question formulated by us. Almost all the learned counsel appearing in all the matters except Mr. Deo, learned counsel appearing for some of the respondents in Arbitration Appeal No.14 of 2005, addressed the Court in support of the view taken by the learned Single Judge in Cotton Corporation of India. The leading arguments were advanced by Mr. N.V. Walawalkar, learned senior counsel appearing for the appellants in Civil Revision Applicat




















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