IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
N.V. ANJARIA, SAMIR J. DAVE, JJ.
Arun Kumar Jagatramka - Petitioner
Versus
Ultrabulk A/S - Respondent
R/Special Civil Application No. 17399 of 2021
Decided On : 04-02-2022
Constitution of India,1950 - Article 227 and 226 - Code of Civil Procedure, 1908 - Sections 44A, 37, 47, 38, 36 to 74 and Order XXI - Commercial Courts Act - Sections 6, 10, 2(i) and 16 - Seeking to press into service the Law Commission of India - Seeking similar declaration - Petitioner had executed irrecoverable personal guarantee on behalf of Gujarat NRE Coke Limited - Company failed to pay the dues, the suit came to be instituted by the respondent in English Commercial Court, resulting into decree as aforesaid - It is under Section 44A of the Code of Civil Procedure, 1908 (CPC) that said decree is presented for execution before Commercial Court as decree of reciprocating territory - execution proceedings were previously initiated before Commercial Court, being Execution Petition which came to be transferred at Jamnagar and renumbered as Execution Application - It is relevant to state that before the Rajkot Commercial Court also application Exhibit 19 was filed seeking similar declaration that the Commercial Court did not have the jurisdiction to execute the decree was rejected by said court by order order was challenged by the petitioner – Held, commercial court under Section 6 of Commercial Courts Act extend to try all suits and applications relating to commercial dispute of specified value - Word ‘specified value’ has been defined under Section 2(i) of Commercial Courts Act - Word ‘applications’ under Section 6 would include execution applications and also proceedings relating to commercial dispute of specified value. The jurisdiction of the commercial court necessarily extends to the execution application arising from the judgment and decree of commercial court - amending certain provisions of CPC as per the Section 16 of Commercial Courts Act, the commercial court does not have jurisdiction to try and decide the execution petitions - Merely because there is no amendment in relation to the execution provisions brought about and certain other provisions of CPC were amended to be applied to the commercial suits - Court considered the words ‘as if’ used in Sub-section (1) of Section 44A, CPC to observe that the words ‘as if’ are used to make whole scheme of Order XXI applicable in respect of execution of decrees of foreign court mentioned in Sub section 1. In other words, it can be said that when foreign decree is sought to be executed under Section 44A, CPC - impugned order dismissing the application Exhibit 65 and refusing to hold that commercial court does not have jurisdiction to entertain and decide execution proceedings books no error whatsoever - Petition is dismissed.
Key Points: - The jurisdiction of commercial courts extends to trying all suits and applications relating to commercial disputes of specified value, including execution applications (!) . - Execution proceedings initiated for decrees of foreign courts under Section 44A CPC are treated as applications within the jurisdiction of commercial courts (!) (!) . - The word "applications" in the Commercial Courts Act includes execution applications arising from judgments and decrees of commercial courts (!) . - The provisions of the CPC relating to execution were not amended under the Commercial Courts Act, but this does not limit the jurisdiction of commercial courts to execute decrees (!) . - A clear position of law emerges that commercial courts do have jurisdiction to try and decide execution applications arising from judgment and decree passed by commercial courts (!) .
JUDGMENT :
N.V. Anjaria, J.
Heard learned advocate Mr. Vivek Gupta for the petitioner and learned advocate Mr. Aditya Krishnamurthy with learned advocate Mr. Harsh Parekh for the respondent, at length.
2. The challenge in the present Special Civil Application filed under Article 227 of the Constitution, is directed against order dated 4.8.2021 below application Exhibit 65 in Execution Application No.161 of 2019 passed by the Principal Senior Civil Judge, Jamnagar - the Commercial Court, whereby the prayer of the petitioner to hold that the said executing court did not have the jurisdiction to entertain and decide the execution proceedings, came to be negatived.
2.1 The respondent herein - Ultrabulk A/S is the execution petitioner and the decree-holder in whose favor the decree dated 9.11.2017 is passed by the High Court of Justice, Queen’s Bench Division of England and Wales – the Commercial Court, for a sum equivalent USD 42,59,395/- with interest.
3. The facts in the background stated in the nutshell are that the petitioner had executed irrecoverable personal guarantee on behalf of the Gujarat NRE Coke Limited. Since the said company failed to pay the dues, the suit came to be instituted by the respondent in English Commercial Court, resulting into decree as aforesaid. It is under Section 44A of the Code of Civil Procedure, 1908 (CPC) that the said decree is presented for execution before the Commercial Court at Jamnagar as the decree of reciprocating territory.
3.1 It may be stated that the execution proceedings were previously initiated before the Commercial Court, Rajkot being Execution Petition No.4 of 2018, which came to be transferred at Jamnagar and renumbered as Execution Application No.161 of 2019. It is relevant to state that before the Rajkot Commercial Court also application Exhibit 19 was filed seeking similar declaration that the Commercial Court did not have the jurisdiction to execute the decree. The prayer was rejected by the said court by order dated 10.4.2019. That order was challenged by the petitioner - judgment debtor by filing Special Civil Application No.8334 of 2019 which came to be dismissed by Division Bench of this Court by order dated 26.8.2019. The details in that regard are mentioned in the later part of this order.
3.2 It appears that the order of the Division Bench was carried before the Supreme Court in Special Leave Petition and pursuant to the order passed by the Supreme Court granting liberty to raise contention about the jurisdiction of the Commercial Court to entertain execution petition, the Execution Application No.161 of 2019 came to be filed. It resulted into order impugned herein.
4. In application Exhibit 65 as well as in the memorandum of present petition, grounds raised to assail the impugned order are inter alia that Section 6 of the Commercial Courts Act, 2015 which deals with the jurisdiction of the commercial court does not take within its sweep the execution petitions. The ambit of provisions of the commercial court, it was submitted, excludes the power of execution and executory power cannot be exercised by the commercial courts.
4.1 It was next submitted that as per Section 16 of the Commercial Courts Act, certain provisions of Code of Civil Procedure, 1908, as per the Schedule, came to be amended to be applied to the suits instituted before the commercial court. It was submitted that the Section 44A is not amended, and that the provisions amended by virtue of Section 16 do not contain any amendment in relation to execution, which are governed under the provisions of Sections 36 to 74 and Order XXI, CPC. It was therefore, sought to be deduced that commercial courts are not vested with powers of execution. It was contended that the execution decrees of the commercial courts would be governed by the regular provision of CPC and the decrees have to be executed before the court exercising original jurisdiction to entertain the execution petition.
4.2 Learned advocate for the petitioner
The Commercial Courts Act, 2015 grants jurisdiction to Commercial Courts for executing arbitral awards related to commercial disputes, emphasizing expedited resolution.
Commercial Courts are empowered to execute arbitral awards under the Arbitration and Conciliation Act, reaffirming the intent of the Commercial Courts Act for speedy resolution of commercial disputes....
The main legal principle established in the judgment is 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 ....
The main legal point established in the judgment is that lack of inherent jurisdiction can be raised in an execution proceeding, and the subject matter jurisdiction vested with the High Court under t....
Execution petitions for awards must be filed in the jurisdiction where the property is located, as enforced under the Arbitration and Conciliation Act and Civil Procedure Code.
The main legal point established is that the Commercial Court has jurisdiction to entertain execution proceedings arising from an award under the Arbitration and Conciliation Act, and the award holde....
The Executing Court cannot reassess a decree's validity on jurisdictional grounds after the decree has attained finality; jurisdictional issues can only be raised during original proceedings.
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