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2022 Supreme(Online)(All) 111

ALLAHABAD HIGH COURT
, J
Hasmukh Prajapati – Appellant
Versus
Jai Prakash Associates Ltd. – Respondent
Writ - C No.33003 of 2019 | Arbitration Application No. 26 of 2019 | Misc. Application No. 6 of 2020



Advocates:
For the Appellants/Petitioners: Sri Vidhu Prakash Pandey
For the Respondents: Sri Anurag Khanna, Sri Rohan Gupta

The determination of the arbitration 'seat' and 'venue' is critical; if the 'venue' does not specify a 'seat', jurisdiction lies with the designated court under the arbitration agreement.

Headnote:(A) Constitution of India - Article 227 - Arbitration and Conciliation Act, 1996 - Section 34 and Section 42 - Challenge to the order of the Commercial Court regarding jurisdiction in arbitration matters - Petitioner challenged the Commercial Court’s order, claiming no jurisdiction existed as arbitration was conducted in New Delhi, while the governing law and jurisdiction were designated to Gautam Budh Nagar. Court found the venue of arbitration to be New Delhi but held that Gautam Budh Nagar retained jurisdiction to hear applications under Section 34 due to provisions in the arbitration agreement and precedent from BGS SGS SOMA JV v. NHPC Ltd. (Paras 5, 6, 33, 41).

(B) Jurisdiction - Definitions of seat and venue in arbitration - The court elaborated on the distinction between 'seat' and 'venue', with significant emphasis on the 'seat' being essential for jurisdiction, while the 'venue' serves as a determination for convenience. The court concluded that the terms should not be used interchangeably and clarified that Gautam Budh Nagar was the 'seat' despite the arbitration being held in New Delhi (Paras 16, 17, 19).

(C) Conclusion - Importance of jurisdiction in arbitration proceedings - Arbitrations need to follow the designated jurisdictional laws, and any challenge to the arbitral award must align with the jurisdiction defined in the agreement (Paras 35, 40).

Table of Content
1. legal representation and submission to court. (Para 1 , 2)
2. factual background of the apartment booking case. (Para 3)
3. challenge to order and jurisdiction issues. (Para 4 , 5)
4. arguments regarding jurisdiction and seat of arbitration. (Para 6 , 7)
5. clarification on execution jurisdiction post-arbitration. (Para 10 , 11)
6. reiteration of judicial authority under s.42 of the act. (Para 19 , 34)
7. final dismissal of the petition. (Para 41 , 42)

1. Heard Sri Vidhu Prakash Pandey, learned counsel for the petitioner and Sri Anurag Khanna, learned Senior Advocate assisted by Sri Rohan Gupta, learned counsels for the respondent.

2. This petition under Art.227 of the Constitution of India has been filed challenging the order dated 18.08.2021 passed by Presiding Officer, Commercial Court, Gautam Budh Nagar, in Misc. Application No. 6 of 2020 in Arbitration Application No. 26 of 2019, Jai Prakash Associates Ltd. v. Hasmukh Prajapati, preferred u/S. 34 of Arbitration and Conciliation Act, 1996 (arising out of award dated 16.02.2019 passed by the Arbitral Tribunal (Sole Arbitrator), New Delhi, in Arbitration No. 15 of 2018, Hasmukh Prajapati v. Jai Prakash Associates Ltd.) partly allowing the claim of the petitioner.

3. The brief facts of the case are as follows : -
(i) The petitioner booked an Apartment No.0301 in Kalypso Court, Tower No. l, Jaypee Greens Noida, admeasuring 315.12Sq. mtrs, in terms of the Concession Agreement, executed between Yamuna Expressway Industrial Development Authority and Jaypee Industries Limited, for the project of Yamuna Expressway Industrial Development Authority and as per the standard terms and conditions of the allotment of the apartment at Jaypee Greens, respondent was under obligation to hand over the possession of constructed apartment to the allottee maximum within 36 months and additional grace period of 90 days from the date of its allotment.
(ii) The petitioner deposited Rs.18,48,000/- on 17.11.2007 on account of advance, against booking of said apartment which has been allotted in favour of petitioner vide provisional allotment letter dated 11.02.2008 for a total consideration of Rs. 1,96,02,400/-, subject to standard terms and conditions and the provisional allotment letter dated 11.02.2008 has been partially modified. Accordingly, the details of consideration has been revised from Rs.1,96,02,400/- to Rs.1,75,22,560/- and converted from
"Installments Linked Plan" to "Down Payment Plan".
(iii) As per the payment plan, the petitioner has deposited balance of full Down Payment amount of Rs. 1,38,27,527/- through Demand Draft, issued by GE Money Housing Finance Co. on 27.08.2008 and balance payment of Rs.2,99,360/- was made on 09.09.2008 for booking against unit Ref. No.K0010301 in Kalypso Court - 1, Jaypec Greens, Noida but even after expiry of 36 months, the permissible time for handing over possession of fully constructed / ready apartment, even after passing of 4 years, the possession of apartment, allotted to the petitioner, has not been handed over rather illegal demand notices have been sent by the respondent.
(iv) Vide letter dated 18.07.2014, the petitioner has been informed about delivery of possession of apartment, subject to NGT clearance and due to the said reason, the apartment was not ready for delivery to its allottee. NGT has restrained Noida to issue completion certificate and the said condition finds mention in the letter dated 18.07.2014 itself.
(v) As on 14.04.2015, the petitioner's dues became Rs. 3,79,939.53 but still flat was not constructed.
(vi) Vide order dated 02.06.2015, the petitioner has been informed through partially modified allotment letter demanding additional car parking charges of Rs. 5,00,000/- but the petitioner visited the office and came to know that a huge interest has also been imposed on him.
(vii) For waiver of interest on unpaid amount and delivery of possession of apartment No. KLP 0301, the petitioner moved several applications before re



































































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