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2004 Supreme(Del) 1125

High Court Of Delhi
MOTOROLA INC - Appellant
Versus
MODI WELLVEST - Respondent
EXECUTION PETITION 135 of 2003
Decided On : 12/02/2004

Advocates Appeared:
D.RAJPAL, DARPAN WADHWA, K.BUDHIRAJA, N.Menon, NITI DIXIT, P.K.BUNSAL, RAJIV NAYAR, SOLI J.SORABJI, T.R.AHDYARUAJINA, V.P.Singh

Headnote:Civil - jurisdiction - Section 48 of Arbitration and Conciliation Act, 1996 -appellant sought enforcement of foreign awards as per Explanationn to Section 48 - respondent contended that execution of foreign award not within territorial jurisdiction of Court - respondent had bank account in State - held shares of company registered in State - amount and shares assets of respondents - foreign award executable as decree - preliminary plea of lack of territorial jurisdiction rejected.

Mukul Mudgal, J.

( 1 ) THIS order will dispose of the preliminary issue raised by the judgment debtor, M/s. Modi Wellvest Private Limited (in short hereinafter referred to as jd or mwpl ) to the effect that the present execution petition to enforce a foreign award against it does not lie within the territorial jurisdiction of this Court and should, be dismissed on this ground.

( 2 ) THE decree-holder, M/s. Motorola, Inc. (in short the dh ) has moved this Court for an execution/enforcement of a New York Convention award as per Explanation to Section 47 of the Arbitration and Conciliation Act, 1996 (in short the 1996 Act ).

( 3 ) MR. T. R. Andhyarujina, the learned Senior Counsel, appearing for MWPL has contended inter alia as under:

(A) that primarily the DH has filed the execution petition in this Court on the basis that a Shareholder Guarantee, containing the arbitration clause had been executed between the parties at New Delhi. (b) that the primary assets of the MWPL are 51% of the shares of the company Spice, having its registered office in New Delhi where the Register of Shares is maintained. (c) that the execution petition is predicated further on the premise that the business of the MWPL is to primarily attend the shareholder s meeting of the Company Spice located at New Delhi. (d) that the demand for payment was also made at the address for service as per the Shareholders Guarantee which is at New Delhi. (e) that the MWPL/jd has its office at 13th Floor, Modi Corp Tower, 98, Nehru Place, New Delhi where all notices and correspondence at the request of the MWPL had been served.

( 4 ) THERE is no averment in the execution petition that there any monies of MWPL are situated in Delhi so as to confer jurisdiction on this Court. The aforesaid basis of the petition for execution as set out in paragraph 3 above does not individually or collectively confer jurisdiction on this Court under Section 47 of the 1996 Act.

( 5 ) RELIANCE has been placed on the explanation to Section 47 of the 1996 Act which reads as follows:

"in this section and all the following sections of this Chapter, "court" means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercised of its ordinary original civil jurisdiction, having jurisdiction over the subject-matter of Award if the same had been the subject-matter of a suit but does not include any civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes. "it is submitted by the learned Senior Counsel for JD that only the subject-matter of the award is to be considered for the purposes of conferring jurisdiction on a Court under Section 47 of the 1996 Act for enforcement of foreign awards.

( 6 ) SECTION 2 (e) of the Act defines court qua domestic awards, as follows: "court" means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction having jurisdiction to decide the question forming the subject-matter of the arbitration if the same had been the subject matter of a suit but does not include any civil Court of a grade inferior to such principal Civil Courts, or any Court of Small Causes. " the essential ingredient thus for construing the Court s jurisdiction is not the subject matter of the award but the subject matter of the arbitration. It is thus contended that the arbitrator has held that the subject-matter of the award is a sum of $ 33 million payable to the DH by the MWPL and consequently: (g) that the award is only for monies and not for the shares of MWPL in Spice Corporation. (h) that since the decree for payment of monies can be recovered in a Court from a defendant by an action in personam as per Section 16 of the Code, the DH had to proceed against the MWPL by filing an appropriate proceeding in personam against the MWPL which had to be within the jurisdiction of a Court where MWPL is situated, i. e. , Modi Nagar
























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