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2018 Supreme(Chh) 308

IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Prashant Kumar Mishra, Manindra Mohan Shrivastava, Ram Prasanna Sharma, JJ.
A Suo Moto Taken Writ Petition - Petitioner
Versus
State of Chhattisgarh - Respondent
WP227 No. 299 of 2018
Decided On : 12-10-2018

Advocates:
Advocate Appeared:
Dr. N.K. Shukla, Shri Pramod Verma, Shri Prafull N. Bharat, Shri Sunil Otwani

Headnote:

High Court of Chhattisgarh Rules, 2007 - Rule 28(3) - Arbitration and Conciliation Act, 1996 - Section 36 - Chhattisgarh Civil Courts Act, 1958 - Section 3 - Code of Civil Procedure, 1908 - Jurisdiction - Termination of proceedings – Transfer of Arbitration proceedings – Enforcement of Award - Whether applications for execution of Arbitration Awards under Section 36 of Act, 1996 and other applications under that Act which could lie before Principal Civil Court of Original Jurisdiction can be considered by any of the District Judges or Additional District Judges of that Principal Civil Court of Original Jurisdiction – The matter for consideration and appointed Dr. N.K. Shukla & Shri Pramod Verma, both learned Senior Advocates and Shri Prafull N. Bharat & Shri Sunil Otwani, both learned Advocates to assist this Court as amicus curiae, who argued matter at length on different dates - Held, Jurisdiction is over arbitral proceedings, which terminates upon passing of an award and any subsequent application arising from that agreement and the arbitral proceedings are to be made in that Court alone and that Section 42 would not apply to an execution application, which is not an arbitral proceedings and that Section 38 of Code would apply to a decree passed by Court, while in case of an award no court has passed decree - Supreme Court eventually concluded that enforcement of an award through its execution can be filed anywhere in country where such decree can be executed and there is no requirement for obtaining a transfer of decree from Court, which would have jurisdiction over arbitral proceedings - Any application filed under any provision of Act, 1996 before Court after passing of award, including applications under Section 34 or 36 of Act, 1996, can be heard and decided not only by District Judge(s), but also by Court of Additional District Judge(s), upon being made over by District Judge by a general or special order - In respect of application with regard to an arbitration agreement where award is yet to be passed, such application may be moved before District Judge and can be made over to Court of Additional District Judge by general or special order but in such eventuality any subsequent application till passing of award is to be decided by same Court, which has dealt with earlier application, by virtue of Section 42 of Act, 1996 - Reference order accordingly.

ORDER :

Prashant Kumar Mishra, J.

1. This suo moto petition under Article 227 of the Constitution of India is a reference made to the Full Bench by Hon’ble the Chief Justice on a request made by the District & Sessions Judge, Durg, in its memo dated 5-3-2018 to the effect that 859 Arbitration Cases are pending before the District & Sessions Judge i.e. the Principal Civil Court of Original Jurisdiction which cannot be transferred to the Court of Additional District Judge(s) functioning within his jurisdiction in view of the judgment rendered by this Court in the matter of Raipur Development Authority v M/s Sarin Construction Company, Raipur (AIR 2006 Chh. 12), therefore, requesting the High Court to issue guidelines for transfer of the pending Arbitration cases.

2. Hon’ble the Chief Justice has, therefore, exercised the power under Rule 28(3) of the High Court of Chhattisgarh Rules, 2007 to place the following issue for consideration before the Full Bench :

“Whether applications for execution of Arbitration Awards under Section 36 of the Arbitration and Conciliation Act, 1996 and other applications under that Act which could lie before the Principal Civil Court of Original Jurisdiction can be considered by any of the District Judges or Additional District Judges of that Principal Civil Court of Original Jurisdiction ?”

3. On 16-4-2018 we took up the matter for consideration and appointed Dr. N.K. Shukla & Shri Pramod Verma, both learned Senior Advocates and Shri Prafull N. Bharat & Shri Sunil Otwani, both learned Advocates to assist this Court as amicus curiae, who argued the matter at length on different dates.

4. Referring to various provisions contained under the Arbitration and Conciliation Act, 1996 (for short ‘the Act, 1996’), the Chhattisgarh Civil Courts Act, 1958 (for short ‘the Act, 1958’), the General Clauses Act, 1897 (for short 'the Act, 1897') and the Code of Civil Procedure, 1908 (for short ‘the CPC’), learned amicus curiae have argued that the majority of the judicial pronouncements by different High Courts have taken the view that the Court of Principal Civil Court of Original Jurisdiction would include the Court of ADJ.

Submissions :

5. Dr. N.K. Shukla & Shri Pramod Verma, learned senior Advocates, Shri Prafull N. Bharat & Shri Sunil Otwani, learned Advocates appearing as amicus curiae would place reliance on various decisions of the Supreme Court as well as the High Courts and also referred to the statutory provisions.

6. Learned amicus curiae have argued that in the matter of M/s Sarin Construction Company (supra), the Single Bench of this Court has relied on the judgments rendered by the Allahabad High Court in M/s I.T.I. Ltd. Allahabad and others v District Judge, Allahabad and Others (AIR 1998 All 313) and the Single Bench of the High Court of Madhya Pradesh in Vinod Kumar Jajodia and others v Brij Bhushan Agarwal (1993 MPLJ 603), however, both the matters were on different points. According to them, High Courts of Calcutta, Bombay, Madhya Pradesh and Kerala have taken the view that the Court of District Judge includes the Court of ADJ whereas the High Courts of Orissa, Karnataka and Andhra Pradesh have taken the view that the Court of Principal Civil Court of Original Jurisdiction would mean the Court of District Judge only and does not include the Court of Additional District Judge.

7. Learned amicus curiae would emphatically submit that the matter is now set at rest by the Supreme Court in its very recent judgment in the matter of Sundaram Finance Limited represented by J. Thilak, Senior Manager (Legal) v Abdul Samad and Another, (2018) 3 SCC 622 therefore, the very foundation of the judgment rendered by the Single Bench of this Court in M/s Sarin Construction Company (supra) is wiped off.

Discussion :

8. The Act, 1996 is arranged in four Parts. Part I consisting of Chapter I to X, Sections 1 to 43 deals with Arbitration Clauses. Part II from Sections 44 to 60, divided in two Chapters provides for enforcement of c


































































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