2019 Supreme(All) 1474
IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Ajay Bhanot, J.
P.T.C. Techno Pvt. Ltd.- Applicant
Vs.
Samsung India Electronics Pvt. Ltd. - Opposite Party
Civil misc. Arbitration application No. 1 of 2018
Decided On : 26-02-2019
For the Applicant : S. Rashid,Arvind Srivastava
Headnote:
Section 34 - Arbitration & Conciliation Act, 1996 - 34 - Summary of Acts and Sections: The court discussed Section 34 of the Arbitration & Conciliation Act, 1996 and its provisions for setting aside an arbitral award. It also referred to Section 2(e)(i) and Section 2(f) of the Act, and the amendments made to Section 2(f) by the Arbitration and Conciliation (Amendment) Act, 2015. The court highlighted the significance of determining the nationality of parties and the place of incorporation of a company in establishing whether an arbitration is an 'international commercial arbitration.'
Fact of the Case:
The applicant filed an application under Section 34 of the Arbitration & Conciliation Act, 1996 challenging an arbitral award. The opposite party raised a preliminary objection contesting the maintainability of the application before the Allahabad High Court.
Finding of the Court:
The court found that the arbitration agreement in question did not satisfy the prerequisites of an 'international commercial agreement' under Section 2(f) of the Act of 1996. It also determined that the Allahabad High Court did not have jurisdiction to entertain the instant application under Section 34 of the Act of 1996.
Issues: The issues involved the maintainability of the application under Section 34 of the Act of 1996 before the Allahabad High Court and the determination of whether the arbitration agreement constituted an 'international commercial arbitration.'
Ratio Decidendi: The court's decision was based on the interpretation of Section 34 and Section 2(f) of the Act of 1996, as well as the amendments made to Section 2(f) by the Arbitration and Conciliation (Amendment) Act, 2015. It also relied on the determination of the nationality of parties and the place of incorporation of a company to establish the nature of the arbitration.
Final Decision: The application was dismissed by the court, and the applicant was granted liberty to approach the competent court and seek any tenable prayers in accordance with the law.
JUDGMENT :
Ajay Bhanot, J.
Heard Sri S. Rashid and Sri Ravi Anand Agarwal, learned counsel for the applicant and Sri Navin Sinha, learned Senior Counsel assisted by Sri Kartikeya Saran and Sri Neeraj Singh, counsel for the opposite party.
2. The instant application has been preferred under Section 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "Act of 1996") laying a challenge to the award passed by the learned Sole Arbitrator, Sri Daljit Singh on 19.04.2018 in the arbitration matter, PTC Techno Pvt. Ltd. Vs. Samsung India Electronics Pvt. Ltd.
3. Sri Navin Sinha, learned Senior Counsel assisted by Sri Kartikeya Saran and Sri Neeraj Singh, counsel for the opposite party has raised a preliminary objection contesting the maintainability of the application under Section 34 of the Act of 1996, before this Court.
4. The submission of the learned Senior Counsel is that the foot and the forum for challenge to an arbitral award have been provided in the Act of 1996. As per the scheme of the Act of 1996 the Allahabad High Court does not have the jurisdiction to entertain the instant application. Learned Senior Counsel relies upon the law laid down by the Hon'ble Supreme Court in the case of TDM Infrastructure Pvt. Ltd. Vs. UE Development Pvt. Ltd. reported at (2008) 14 SCC 271.
5. Learned Senior Counsel has called attention to various provisions of the Act of 1996 and amendments to the Act made over the years which shall be considered in the course of the judgment.
6. Sri S. Rashid and Ravi Anand Agarwal learned counsels for the applicant do not seriously dispute the aforesaid contentions. They however contend that the opposite party is a South Korean Company.
7. The Act of 1996 is a complete code to ensure a fair, efficient and expeditious disposal of matters relating to arbitration. The parties to the arbitration agreement are also the parties in the instant application under Section 34 of the Act of 1996. The opposite party in the application is described as follows:-
Samsung India Electronics Pvt. Ltd.
B-1, Sector 81, Phase II
Noida-201305
Gautam Budh Nagar
8. A certificate of incorporation of the opposite party taken out by the Registrar of Companies, N.C.T. of Delhi & Haryana, under Section 31 (i) of the Companies Act, 1956 is appended to the application. The aforesaid certificate records that Samsung India Electronics Ltd. is incorporated under the Companies Act, 1956 (No. 1 of 1958) as a Ltd. Company. A fresh certificate of incorporation was issued consequent to the change of name and conversion to a Pvt. Ltd. Company. A fresh certificate of incorporation issued by Registrar of Companies, N.C.T. of Delhi & Haryana on 17.08.2005 certifies that w.e.f. 27.08.2005 the name of the company was changed to Samsung India Electronics Pvt. Ltd.
9. These are certificates are admitted by parties. They are appended to the application filed by the applicant. The aforesaid certificates disclose that the opposite party Samsung India Electronics Pvt. Ltd. is a body corporate incorporated in India. On these limited but also admitted facts the question of law shall turn.
10. Section 34 provides for a challenge or recourse to a Court of law against an arbitral award and states thus:-
"34. Application for setting aside arbitral award.
1. Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-section
(2) and subsection (3).
2. An arbitral award may be set aside by the Court only if-
a. the party making the application furnishes proof that-
i. a party was under some incapacity, or
ii. the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or
iii. the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
iv. the arbitral award deals with a di