National Highway Authority of India, PIU Indore vs Anita

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2022 Supreme(MP) 239

IN THE HIGH COURT OF MADHYA PRADESH
Subodh Abhyankar, J.
National Highway Authority of India, PIU Indore v. Smt. Anita & Another
Miscellaneous Petitions No. 1939 of 2021, 1967 of 2021,
1972 of 2021, 1986 of 2021, 2025 of 2021, 2026 of 2021, 2029
of 2021, .2041 of 2021, 2114 of 2021 and 2101 of 2021 (Indore); Decided on 12.10.2022

Advocates:
Ms. Anita Sharma for petitioner;
Ravindra S. Trivedi for respondents.

Headnote:
Arbitration and Conciliation Act, 1996 -- Ss. 34 and 42 -- territorial jurisdiction -- application u/s. 34 -- land situated at District Dewas sought to be acquired -- application u/s. 34 filed at Ujjain -- held -- application u/s. 34 shall be treated to be application for purposes of S. 42 -- cannot be treated to be mere objection -- Court at Ujjain has jurisdiction as arbitration proceedings took place at Ujjain. (2014) 11 SCC 619 and (2012) 9 SCC 552 followed. Arbitration Appeal No. 41 of 2018 decided on 17.12.2018 dissented from. Arbitration Appeal No. 16 of 2022 decided on 12.4.2022 referred to. [Paras 11 & 12
ek/;LFke~ vkSj lqyg vf/kfu;e] 1996 && èkkjk 34 rFkk 42 && {ks=h; vfèkdkfjrk && /kkjk 34 ds v/khu vkosnu && ftyk nsokl esa fLFkr Hkwfe dk vtZu bZfIlr && /kkjk 34 ds v/khu vkosnu mTtSu esa izLrqr && vfHkfu/kkZfjr && /kkjk 34 ds v/khu vkosnu /kkjk 42 ds iz;kstuksa gsrq vkosnu ekuk tk,xk && ek= vkifÙk ugha ekuk tk ldrk && mTtSu fLFkr U;k;ky; dks vf/kdkfjrk gS D;ksafd eè;LFkrk dk;Zokgh mTtSu esa gqbZ FkhA ¼2014½11 ,l lh lh 619 rFkk ¼2012½9 ,l lh lh 552 vuqlfjrA ek/;LFke~ vihy Ø- 41 lu~ 2018 fu.khZr fnukad 17-12-2018 folEerA ek/;LFke~ vihy Ø- 16 lu~ 2022 fu.khZr fnukad 12-4-2022 fufnZ"VA ¼iSjk 11 ,oa 12

ORDER

1. Heard finally, with the consent of the learned counsel for the parties.

This order shall govern the disposal of Miscellaneous Petition No.1939/2021 and connected petitions being Miscellaneous Petition No.1967/2021, Miscellaneous Petition No.1972/2021, Miscellaneous Petition No.1986/2021, Miscellaneous Petition No.2025/2021, Miscellaneous Petition No.2026/2021, Miscellaneous Petition No.2029/2021, Miscellaneous Petition No.2041/2021, Miscellaneous Petition No.2114/2021 and Miscellaneous Petition No.2101/2021, having regard to the similarity of the issue involved. For the sake of convenience, the facts, as noted in Miscellaneous Petition No.1939/2021, are being taken into consideration.

This Miscellaneous petition under Article 226 / 227 of the Constitution of India has been filed by the petitioner / National Highway Authority of India, Project Implementation Unit, Indore (MP) challenging order dated 9.2.2021 (Annexure P/1) passed by the learned 5th Additional District Judge, Ujjain (MP) in Miscellaneous Judicial Case bearing registration number MJC (AV) 31/2018, whereby the application filed by the petitioner for cancellation of the award dated 13.8.2018 passed by the Arbitrator-cum-Commissioner, Ujjain Division, Ujjain, under section 34 of the Arbitration & Conciliation Act, 1996 (herein after referred to as the Act of 1996) has been rejected on the ground of territorial jurisdiction of the Court, in view of section 2 (d) of the Arbitration & Conciliation Act, 1996, while allowing the application filed by the respondents under section 16 of the Code of Civil Procedure, 1908.

2. In brief, the facts of the case are that the respondents herein are the owners of land situated at District Dewas which was sought to be acquired by the petitioner National Highway Authority of India for construction of National Highway Number 3 (NH-3) in Shivpuri-Dewas Zone. In the aforesaid acquisition proceedings, the Competent Authority (Sub Divisional Officer, Revenue, Dewas) passed an award on 7.2.2013 (Annexure P/6). This award was challenged by the respondents before the statutory Arbitrator, National Highway Tribunal & Court of Commissioner, Ujjain Division, Ujjain (MP), who vide its order dated 13.8.2018 (Annexure P/2) passed the final award. The aforesaid final award was challenged by the petitioner before the Additional District & Sessions Judge, Ujjain under section 34 of the Arbitration & Conciliation Act, 1996 (herein after referred to as the Act of 1996) for cancellation of the final award dated 13.8.2018. In the aforesaid proceedings, the respondents filed an application dated 29.7.2019 under section 16 of the Code of Civil Procedure, 1908 (CPC) read with sections 34 (2) and 34 (5) of the Act of 1996, contending that the Ujjain Court has no jurisdiction to entertain the aforesaid application filed by the National Highway Authority of India under section 34 of the Act of 1996, as the appropriate forum would be the Court at Dewas only, where the subject matter of the dispute is situated.

3. The learned Judge of the lower Court, vide its impugned order dated dated 9.2.2021, (Annexure P/1) has allowed the aforesaid application under section 16 of the CPC filed by the respondents and has rejected the application filed by the petitioner under section 34 of the Act of 1996; and also directing the petitioner to file the application under section 34 of the Act of 1996 before the appropriate Court of jurisdiction.

4. Ms. Anita Sharma, learned counsel appearing for the petitioner has submitted that the impugned order is liable to be set aside, as it has been erroneously held by the learned Judge of the lower Court that it has no jurisdiction to decide an application under section 34 of the Act of 1996, despite the fact that the arbitral proceedings took place at Ujjain only; and thus, the Court at Ujjain was competent enough to entertain an application under section 34 of the Act of 1996.

5. In support of her contentions, Ms. Sharma has a