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2022 Supreme(Guj) 748

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
N.V. Anjaria, Samir J. Dave, JJ.
Kanhai Foods Ltd. - Petitioner
Versus
A. And Hp Bakes – Respondent
First Appeal No. 2638 of 2021, First Appeal No. 2639 of 2021
Decided On : 10-06-2022

Advocates appeared:
Nandish Chudgar, N.N.Prajapati, Darshan M.Varandani, Jaimin Dave, Advocates

Headnote:

Arbitration and Conciliation Act, 1996 – Section 9 – Appeal – Interim Measures – Appeals involve similar facts and identical issues notified and were considered together to be treated by this common judgment – Appeals are directed against orders passed by learned Judge Commercial Court City Civil Court rejecting application of same appellant-applicant – Held, Court rightly observed that after going through jurisdiction clause in agreement it suggested that parties had agreed to conduct arbitration proceedings decision of Supreme Court in Bharat Aluminium Kaiser Aluminium Technical Services relied on and on that basis court negatived case of respondent that court at did not have jurisdiction – Court correctly observed about nature of powers to be exercised while passing interim measures – Appeals dismissed.

JUDGMENT :

N.V. Anjaria, J.

(1.) Since both these appeals involve similar facts and identical issues, they were notified and were considered together to be treated by this common judgment.

    1.1 Heard learned advocate Mr. Nandish Chudgar with learned advocate Ms. Nidhi Prajapati for the appellant and learned advocate Mr. Jaimin Dave for the respondents in both the appeals, at length.

1.2 The parties through their respective learned advocates supplied the paper book of the relevant documents, of the contents of which, they were ad idem. They were accordingly permitted to refer to the same.

1.3 Learned advocates for the parties stated that no further pleadings were required and that the pleadings were completed. They stated that they argued the appeals finally. Accordingly, the appeals were taken up for final hearing.

(2.) The appeals are directed against the orders passed by learned Judge, Commercial Court, City Civil Court, Ahmedabad, rejecting the application of the same appellant-applicant under section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Arbitration Act, 1996').

    2.1 In First Appeal No. 2638 of 2021, it is an order dated 31.08.2021 passed by the Commercial Court rejecting Commercial Civil Misc. Application No. 434 of 2021, which was an application under section 9 of the Arbitration Act, 1996, is brought under challenge. In the other First Appeal No. 2639 of 2021, the challenge is directed against the order dated 6th September, 2021 of the Commercial Court, by which the Commercial Civil Misc. Application No. 435 of 2021 was rejected.

(3.) The appellant Kanhai Foods Ltd. through its Director filed Commercial Civil Misc. Applications referable to two respective Appeals under section 9 of the Arbitration Act, 1996 seeking interim measures by making the following prayers, extracted from para 24 (A) to 24 (C) of the application,

    (i) to direct the Respondent No.1 through its partners and/or their agents and servants to handover the franchised premises/outlet (shop at : Near M. F. Furniture, Vallabhnagar Cross Road, Pij Road, Nadiad - 387 002) to the Applicant for a period of three months from the date of such handover, as per Clause 5(22) of the franchise agreement dated 01.11.2020.

(ii) to restrain the Respondents from carrying out any activity at the franchised premises / outlet (shop at : Near M. F. Furniture, Vallabhnagar Cross Road, Pij Road, Nadiad - 387 002) for a period of three months as per Clause 5(22) of the franchise agreement dated 01.11.2020.

(iii) to restrain the Respondents through its partners and / or its agents and servants, from conducting business similar to the business as envisaged in the franchise agreement dated 1.11.2020 either directly or through his sister companies or family members as per Clause 5(27) of the franchise agreement and also restrain the Respondents from hiring any of the employees including chefs and cooks of the Applicant Company.

3.1 The prayers in application under section 9 which became subject matter of the First Appeal No. 2639 of 2021 were identically worded, therefore not repeated, except that the description of the franchised premises in that second case was shop at G5, Mercury Complex, Opp. BAPS Swaminarayan Temple, Vaniyavad Circle, College Road, Nadiad - 387 001.

3.2 The case of the appellant-applicant was inter alia that it was a registered company engaged in the business of production, marketing and selling of bakery products in the name and brand 'KABHI B'. Under the said brand, it was stated, the appellant started selling the products in year 2007 through exclusive stores and shops in Ahmedabad. As the business expanded, the appellant started granting franchise to other persons in the State. Amongst about 50 franchisees granted, the respondent No.1- partnership firm was also granted franchisee in the year 2015 for KABHI B products at Pij road, Nadiad.

3.2.1 Franchisee agreement was executed on 1.11.2017 as "Agreement for Franchisee of Kabhi

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