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 03.7.2013

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 03.7.2013. Since, no arbitrator could be appointed as per dispute

resolution clause aforesaid, the appellant filed an application under

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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 03.7.2013

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 03.7.2013 :-

“THIS DEED OF PARTNERSHIP executed on

the 03^rd 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, 1^st Floor, New Market, Bhopal

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462003 in partnership vide partnership agreement

executed between them on 03.07.2013.

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, 1^st 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 is being acquired by Indore Development

Authority. The acquisition of the said land is

challenged