SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2012 Supreme(Raj) 578

(Rajasthan High Court)
Jaipur Bench
Precision Cars India Vs. Porsche Middle East & Africa (Gupta, J.)
HON'BLE NISHA GUPTA, J.
Precision Cars India Pvt. Ltd.
Versus
Porsche Middle East & Africa, F.Z.E. & Anr.
S.B. Civil Misc. Appeal No. 1720 of 2012, decided on 04.05.2012

Advocates Appeared
Ashok Gaur, Sr. Advocate with Nitit Jain and Ajatshatru Singh, for Appellant;
A.K. Sharma, Sr. Advocate with Sumit Nag, Piyush Nag and Rachit Sharma

Headnote:Arbitration and Conciliation Act, 1996, Sec. 9 — Termination of contract — On earlier occasion interim relief was denied on application u/S. 9 of the Act — Second application — Clause of the agreement that any dispute in the matter shall be referred to arbitration as per rule of London Court of International Arbitration — Jurisdiction of courts situated in India to entertain application u/S. 9 of the Act — Held — When the parties adopted English law for governing the arbitration agreement and have expressly excluded the applicability of Indian law, than the provision of Sec. 9 cannot be invoked — The Courts situated in India has no jurisdiction to entertain petition u/S. 9 of the Act — As per clause 13.2 of the agreement, parties have right to terminate agreement subject to 12 months notice — Accepted the notice — Not objected on first instance — Period of 12 months expired — Guilty of delay and now estopped. (Paras 12 to 16, 19, 22 to 24, 33, 34)

       Appeal dismissed.

        ek/;LFke ,oa lqyg vf/kfu;e] 1996] /kkjk 9 & lafonk dh lekfIr & vf/kfu;e dh /kkjk 9 ds rgr vkosnu ij iwoZorhZ volj ij vUrfje vuqrks"k ls badkj fd;k x;k & f}rh; vkosnu & djkj dk ;g [k.M fd ekeys esa dksbZ Hkh fookn vUrjkZ"Vªh; ek/;LFke ds yUnu U;k;ky; ds fu;ekuqlkj ek/;LFke dks funsZf'kr fd;k tk;sxk & vf/kfu;e dh /kkjk 9 ds rgr vkosnu xzg.k djus gsrq Hkkjr esa fLFkr U;k;ky;ksa dh vf/kdkfjrk & vfHkfu/kkZfjr & ek/;LFke djkj dks fofu;fer djus gsrq tc i{kdkjksa us vaxzsth fof/k dks xzg.k dj fy;k gS vkSj Li"V :i ls Hkkjrh; fof/k ds mi;kstu dks vioftZr dj fy;k gS rks /kkjk 9 ds izko/kkuksa dk voyEcu ugha fy;k tk ldrk & Hkkjr esa fLFkr U;k;ky;ksa dks /kkjk 9 ds rgr ;kfpdk xzg.k djus dh vf/kdkfjrk izkIr ugha & djkj ds [k.M 13-2- ds vuqlkj 12 ekg ds uksfVl ds v/;/khu i{kdkjksa dks djkj lekIr djus dk vf/kdkj gS & uksfVl Lohdkj fd;k & igyh ckj dksbZ vH;kifr ugha dh & 12 ekg dh vof/k lekIr gqbZ & foyEc dk nks"kh gS ,oa vc focU/k gSA ¼in la[;k 12 ls 16] 19] 22 ls 24] 33] 34½

       vihy [kkfjt dhA

       

Hon'ble GUPTA, J.—This misc. appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 against the order dated 28.4.2012 passed by Addl. District & Sessions Judge No. 9, Jaipur Metropolitan the application filed under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the `Act of 1996') has been dismissed.

2. The short facts of the case are that appellant-Company is a private limited company registered under the Companies Act and is exclusive importer of cars, accessories and spare parts of the respondent companies for the entire Indian markets. The appellant-company entered into an agreement vide agreement dated 8.6.2007 for an indeterminable period with respondent No. 1, i.e. Porsche Middle East and Africa (hereinafter referred to at `PME') to sell new Porsche multipurpose sports vehicles, original spare parts, accessories etc.

3. Respondent No. 1 sent a notice vide e-mail to the appellant-company whereby it was mentioned that respondent-1 wishes to terminate the contract with the appellant-company which was executed on 8.6.2007 and the contract will automatically terminate after the period of 12 months, i.e. on 28.2.2012.

4. The clause 14.8 of the agreement clearly stipulates that any dispute arising out of or in connection with an agreement including the existence, validity, application or termination of this agreement shall be referred to arbitration in accordance with rules of London Court of International Arbitration. It has been further stipulated in clause 14.9 that execution and interpretation of the contract shall be subject to the laws in force in the Emirates of Dubai and clause 14.8.3 stipulates that the place at which the arbitration takes place shall be the Kingdom of Bahrain. Therefore, the appellant filed an application under Section 9 of the Act of 1996 to restrain the respondent companies from terminating the contract entered between the parties vide agreement dated 8.6.2007 and the termination notice which was issued in contravention of the terms and conditions of the contract and also against the laws of UAE. The Addl. District & Sessions Judge No. 9, Jaipur passed the ex parte order whereby it was directed to the respondent companies not to terminate the agreement without obtaining the approval from the committee as specified under the laws of UAE. Subsequently, after hearing the rival contentions of both the parties, the application under Section 9 of the Act of 1996 has been rejected and hence this appeal.

5. Heard learned counsel for the parties and perused the relevant documents which have been placed on record by both the parties.

6. Today, this matter was listed on the application for taking additional documents on record but with the consent of both the parties, documents have been taken on record and the matter has been heard finally.

7. The contention of the present appellant is that the termination notice is not valid. The learned trial court has not rightly appreciated the law laid down in the case reported in Bhatia International vs. Bulk Trading S.A. and Anr. (2002(4) SCC 105) and erroneously applied the case of Videocon Industries Ltd. vs. Union of India & Anr. (2011) 6 SCC 154) and Dozco India Private Limited vs. Infracore Company Limited (2011) 6 SCC 179) and the learned Judge was wrong in holding that the law of UAE under Federal Law No. (2) of 2012 are not applicable to the present dispute. The termination notice has been given in contravention of the agreement.

8. Per contra, the contention of the respondent is that case of Bhatia International (supra) has been further clarified in the cases of Videocon Industries Ltd. and Dozco India Private Limited (supra). The notice of termination was rightly given and by e-mail dated 8.3.2011, it has been confirmed and accepted by the appellant. The learned trial court has rightly held that courts of India have no jurisdiction to hear any dispute arising out of the agreement in question. It was





































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top