IN THE HIGH COURT OF JUDICATURE AT MADRAS
SATHI KUMAR SUKUMARA KURUP, J.
R.K. Kumar – Petitioner
Versus
M/s. Nachiappan and Co. – Respondent
C.R.P. (PD) No. 1347 of 2020, C.M.P. No. 7447 of 2020
Decided On : 22-09-2022
Constitution of India,1950 - Article 227 - Civil Procedure Code,1908 - Sections 9 and 80 - Arbitration and Conciliation Act - Sections 104 (1)(i) read with Order XLIII, Rule 1 (r), 34 , sub-sections (2), (4) and (6) of 16, 9 , 5 , 7-B 80 and 8 - Minor or person of unsound mind - Partnership firm - There is a Partnership deed between the Petitioners herein and Respondents 1 and 2, who are Partners in firm When ever there is any dispute between Partners - Held, instituting a Suit, the place of residence or the place where the Defendants carries out their work is to be the place of institution of the Suit - Learned District has jurisdiction to grant injunction against the Railway Authorities and Suit is maintainable. invoking of Article 227 of the Constitution - Civil Revision Petition is dismissed
ORDER :
Prayer: This Civil Revision Petition had been filed under Article 227 of Constitution of India to strike off the Plaint in O.S.No. 83 of 2020 on the file of the learned I - Additional District Munsif Court, Salem.
1. This Civil Revision Petition had been filed to strike off the Plaint in O.S.No. 83 of 2020 on the file of the learned I - Additional District Munsif Court, Salem.
2. It is the contention of the learned Counsel for the Petitioner that the learned District Munsif Court at Salem does not have territorial Jurisdiction, as the place of business is at Tindivanam Taluk. There is a Partnership deed between the Petitioners herein and the Respondents 1 and 2, who are the Partners in the firm Nachiappan & Co. When ever there is any dispute between the Partners, it shall be referred to arbitration under the Arbitration and Conciliation Act, 1996. The dispute mentioned in the Plaint is to be referred to the Arbitration, as per the Arbitration Clause between the Partners of the Partnership firm Nachiappan & Co. Therefore, the learned District Munsif Court, Salem ought not to have entertained the Suit in O.S.No. 83 of 2020. On that two grounds this Civil Revision Petition is filed under Article 227 of the Constitution of India seeking to strike off of the Plaint in O.S.No. 83 of 2020.
2.1 The learned Counsel for the Revision Petitioners who are the Defendants in the Suit in O.S.No. 83 of 2020 submitted that this Revision Petition has to be allowed in the light of the Arbitration Clause and Plaint in O.S.No. 83 of 2020 has to be rejected, the Suit in O.S.No. 83 of 2020 has to be struck off on the file of the learned Additional District Munsif, Salem.
3. In support of his contention, the learned Counsel for the Petitioner relied on the following rulings.
3.1. In the case of Kvaerner Cementation India Limited vs. Bajranglal Agarwal and Another, (2012) 5 SCC 214 wherein the Hon'ble Supreme Court had held as under:
4. A bare reading of Section 16 makes it explicitly clear that the Arbitral Tribunal has the power to rule on its own jurisdiction even when any objection with respect to existence or validity of the arbitration agreement is raised, and a conjoint reading of sub-sections (2), (4) and (6) of Section 16 would make it clear that such a decision would be amenable to be assailed within the ambit of Section 34 of the Act.”
3.2. In the case of Bhatia International vs. Bulk Trading S.A. and Another, (2002) 4 SCC 105 wherein the Hon'ble Supreme Court has observed as under:
30. Mr. Sen had also submitted that the term “arbitral award” includes an interim award. He had submitted that it would be open for the arbitral tribunal to pass interim awards and those interim awards could be enforced in India under Part
A. Venkatasubbiah Naidu vs. S. Chellappan and Others
Bhatia International vs. Bulk Trading S.A. and Another
Ganapathy Subramanian vs. S. Ramalingam and Others
Kvaerner Cementation India Limited vs. Bajranglal Agarwal and Another
S.R. Nanda Kishore vs. The Body of Villagers, Mambakkam Village and Others
Southern and Rajamani Transport Pvt. Ltd. vs. R. Srinivasan and Others
Surya Dev Rai vs. Ram Chander Rai
The General Manager, Telecommunications, Trichy and Others vs. K. Natrayan
The mere existence of an arbitration clause does not automatically oust the jurisdiction of civil courts unless explicitly stated in law.
It must be noted that Section 16 of Arbitration Act, necessarily mandates that issue of jurisdiction must be dealt first by tribunal, before court examines same under Section 34.
The main legal point established in the judgment is the scope of revisional powers under Section 115 of the CPC and the principles of rejection of plaint under Order VII Rule 11 of the CPC.
The main legal point established in the judgment is that the jurisdiction of the High Court to hear the petition under the Arbitration Act, IAAP No. 106 of 2016, is restored in view of the decision o....
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