Jurisdiction for arbitration claims is determined by the court where the first application is filed, per Section 42 of the Arbitration and Conciliation Act.

1. CM No.5799/2023: -
This is an application filed on behalf of the respondent seeking transfer of the afore titled Arbitration Petition to the Commercial Court (Additional District Judge Bank Cases), Srinagar for disposal.

2. In the application it has been submitted that the present petition under S.34 of the Arbitration and Conciliation Act , challenging award dated 21.01.2022, passed by the Arbitral Tribunal, has been filed by the petitioner / non - applicant before this Court on 25.04.2022, whereas the applicant / respondent has challenged the same award by way of another petition under S.34 of the before the Commercial Court (Additional District Judge Bank Cases), Srinagar on 16.04.2022. It has been submitted that in terms of provisions contained in S.42 of the , all subsequent applications arising out of Arbitral Award or Arbitration Agreement, have to be filed before the same Court where the initial application with regard to such award or arbitration is filed.

3. I have heard learned counsel for the parties and perused the record of the case.

4. A perusal of the record shows that the present petition, under S.34 of the Arbitration and Conciliation Act , has been filed by the petitioners / non - applicants before this Court on 20.04.2022, whereas the respondent / applicant has challenged the same arbitral award before the Commercial Court, Srinagar by filing a petition under S.34 of on 16.04.2022.

5. S.42 of the Arbitration and Conciliation Act provides that where with respect of arbitration agreement any application has been made in the Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications, arising out of that agreement and the arbitral proceedings, shall be made in that Court and not in any other Court.

6. A Full Bench of this Court, while interpreting the aforesaid provision of law, has, in the case of Ramesh Chand Kathuria and Another v. M/s Trikuta Chemicals Private Ltd and Another , AIR 2015 Jammu and Kashmir 52, held that in case against the arbitral award, parties have filed applications under S.34 of the Act for setting aside the award, in both High Court and the District Court on different dates, in that eventuality, the Court before which first application was filed, shall have the jurisdiction to decide the matter. While holding so, the Full Bench of this Court relied upon the judgment of the Supreme Court in the case of Executive Engineer, Road Development Division No.III, Panvel and Another v. Atlanta Limited , AIR 2014 SC 1093 . It was also held that the applications under the various provisions of the Act, which include S.8 and S.11 and interim measure under S.17 dealt with by the authorities are not the Courts within the meaning of S.2(1)(e) of the Arbitration and Conciliation Act , therefore, S.42 of the Act is not attracted.

7. In the face of the aforesaid position of law, even though the Arbitrator in the present case was appointed in terms of directions passed by this Court, still then, because application under S.34 was made by the respondent / applicant before the Commercial Court, Srinagar prior in time to the present petition filed by the petitioners, the jurisdiction to entertain the present petition vests with the Commercial Court, Srinagar.

8. Accordingly the application of the respondent is allowed and the instant Arbitration Petition is transferred to the Commercial Court, Srinagar for its disposal in accordance with law.
Petition Allowed.