JUDGMENT

1. The interesting conundrum in this appeal filed filed under section 37 of Arbitration and Conciliation Act, 1996 (‘Arbitration Act’) is whether the learned Commercial Court, Bhopal was justified in passing the impugned order dated 11.1.2023 and rejecting the application filed by appellant under section 9 of the said Act for want of territorial jurisdiction in a case of rendition of account where Registered Office in which account is kept is situated at Bhopal.

2. Draped in brevity, the admitted facts between the parties are that appellant and respondent executed a partnership deed on 3.7.2013 Annexure A/3. The said partnership deed was dissolved at the instance of respondent vide notice dated 21.1.2020. After dissolution of said deed, respondent entered into a ‘Joint Development Agreement’ with another builder on 13.1.2022 (Annexure A/9). However, said agreement was cancelled on 28.10.2022.

3. The appellant entered into correspondence with respondent for resolution of dispute by taking aid of Clause-18 of deed of partnership dated 3.7.2013. Since, no arbitrator could be appointed as per dispute resolution clause aforesaid, the appellant filed an application under section 11(6) of the Arbitration Act A.C. No.11/2023 which is pending consideration before this Court.

4. It is also not in dispute that a question cropped up regarding proper stamping of the said deed before the Collector of Stamps (District Indore-2) in Case No.33/B/103/12-13/33. In the said case, it was a common stand of both the parties that the deed dated 3.7.2013 is in-fact a ‘Partnership Deed’ and not a ‘Development Agreement’.

5. The appellant filed an application under section 9 of the Arbitration Act before learned Commercial Court, Bhopal which was registered as Case No. MJC AV/212/22. In addition, an interlocutory application for grant of ad-interim relief was also filed. Upon receiving the notice, other side entered appearance and raised objection of territorial jurisdiction.

6. Learned Commercial Court vide impugned order dated 11.1.2023 dismissed the application for want of territorial jurisdiction.

7. Parties during the course of hearing placed reliance on following clauses of the deed of partnership dated 3.7.2013 :-

“THIS DEED OF PARTNERSHIP executed on the 03rd day of July 2013 between :--

Whereas, the above named Parties intend to carry on business of running a Marriage Garden, Hotel, Restaurant and other allied and connected activities relating to above business on their own or leased land or otherwise to invest and any other activities as mutually agreed by the parties hereto from time to time under the name and style of M/S. THE TOUCH at Hall No.2, A’ Block, GTB Complex, 1st Floor, New Market, Bhopal 462003 in partnership vide partnership agreement executed between them on 3.7.2013.

1. THAT the business of partnership shall be that of running a Marriage Garden, Hotel, Restaurant and other allied and connected activities relating to above business on their own or leased land or otherwise to invest and any other activities as mutually agreed by the parties hereto from time to time under the name and style of M/S. THE TOUCH at Hall No.2, A’ Block, GTB Complex, 1st Floor, New Market, Bhopal 462003. But it shall be open to the partners to undertake other kind of business or to expand and/or to carry the firms business at other place as they may decide mutually from time to time.

2. THAT the duration of this partnership which has commenced from 03.07.2013 shall be at WILL.

3. THAT the capital required for the business of the partnership firm shall be contributed and arranged by the partners with their mutual consent.

4. THAT the First Party is the owner of Land situated at Patwari Halka No.25, survey No.1/1/3, Gram Bicholi Hapsi, Tehsil & Distt. Indore of area about 1.62 hectare. The said land is situated at Scheme no.175 and