The main legal point established in the judgment is the determination of exclusive jurisdiction for arbitration proceedings as per the specific provisions in the Master Franchise Agreement and the Arbitration clause.

JUDGMENT :

1. The instant appeal has been preferred by the petitioner under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') against the order dated 29.02.2020 passed by the learned 2nd Additional District Judge, Jammu, whereby the court below without touching the merits of the case dismissed the petition of appellant herein filed under Section 9 of the Act on the ground that it lacked jurisdiction to adjudicate upon the matter. Before the court below, the petitioner-appellant herein was seeking to grant temporary prohibitory injunction restraining the respondents from appointing a new Master Franchisee of DRS-Kids for the UT of J&K in place of petitioner-appellant herein as well as from interfering in petitioner's functioning as Master Franchisee of DRS-Kids for whole of erstwhile State of J&K.

2. The facts-in-brief are that an agreement of franchisee dated 06.12.2007 was entered into between the petitioner and the DRS Vidya Samiti, a society incorporated under the Society Act, whereby, the appellant agreed to be appointed as franchisee of the DRS Vidya Samiti to establish and operate pre-school under the brand name "DRS Kids" within 3 kms radius of Trikuta Nagar, Jammu. Thereafter, the petitioner-appellant was appointed as the Master Franchisee by DRS Education Pvt. Ltd. vide contract dated 13.12.2008 vesting in petitioner the rights to identify potential areas for establishing new DRS Kids pre-schools within the whole erstwhile State of J&K. As per the agreement, the life of the master franchisee was fixed for 10 years from the date of agreement which was extendable for a further period on mutually agreed terms and conditions.

3. It is submitted that as a consequence of the efforts, money and goodwill so invested by the petitioner-appellant over the years, she was able to get as many as 14 franchisees in Jammu alone, thus generated a considerable amount of regular income in the shape of royalty for respondent No.1, inasmuch as the respondent No.2 would take home 50% of the franchisee fee collected from the schools, as also a royalty from the tuition fees collected from all the schools as per the Master Franchisee Agreement. It is also submitted that petitioner also paid an amount of rupees five lacs as one time Master Franchisee fee.

4. It is submitted that on realizing that the appellant was able to open up 14 franchisee schools in Jammu alone, respondent No.2 turned greedy and started devising ways to oust the appellant from the aforesaid agreement by replacing her. In anticipation of that, the appellant secured an interim relief vide order dated 01.02.2016 from the court of learned 3rd Additional Munsiff, Jammu in suit titled "Supinder Kour vs. MDN Edify Education Pvt. Ltd. and Ors.", whereby the respondents were restrained from advertising, admitting children/students, opening and operating a pre-school in six km area from the border of Trikuta Nagar, Jammu. The suit was subsequently withdrawn by the appellant pursuant to a compromise arrived at between the parties.

5. Second round of litigation started between the parties when the appellant filed a civil suit in the Court of Special Mobile Magistrate, 13 FC (Sub-Judge), Jammu seeking permanent prohibitory injunction restraining the respondents from appointing any new master franchisee in place of appellant for the whole erstwhile State of J&K in place of appellant as allegedly attempted by respondent No. 2 by publishing an advertisement in edition dated 04.04.2019 of the Daily Excelsior newspaper thereby inviting persons interested for master franchisee and for opening DRS Kids school. An interim order dated 06.06.2019 was passed by the aforesaid court protecting the status and rights of the appellant as master franchisee. After that, an application under Section 8 of the Act was filed by the respondents herein before court of learned Sub-Judge/13th Finance Commission, Jammu and vide order dated 05.09.2019 the same came to be a