Once a seat of arbitration is designated, that court has exclusive territorial jurisdiction over proceedings under Section 34 of the Arbitration and Conciliation Act, 1996. A court lacking such jurisdiction passes a nullity, and this jurisdictional defect can be raised at any stage of proceedings.

JUDGMENT

1. This arbitration appeal has been filed under Section 37(1)(C) of the Arbitration and Conciliation Act against the order dated 24/2/2021 passed by Fourth Additional District Judge, Shivpuri (M.P.) in case number MJC AV 33/2018 by which the application filed under Section 34 of the Arbitration and Conciliation Act has been allowed and the award dated 24/7/2017 passed by the Arbitrator-cum-Divisional Commissioner, Division Gwalior, in Case No. 141/15-16/jk-jk-ekxZ, has been set aside and the matter has been remanded back to the Arbitrator-cum-Divisional Commissioner, Gwalior, for re-adjudication.

2. It is submitted by counsel for appellant that in the year 2022, the Collectors of every district where the property is situated have been made the Arbitrators. But prior thereto, the Commissioners of a revenue division were the arbitrators. In an identical case, this Court by judgment dated 25.07.2025 passed in A.A. No.37/2022 [The National Highways Authority of India (Ministry of Road Transport and Highways) Govt. of India Vs. Sanjay Kumar and Others], it was held that since the Divisional Commissioner, Division Gwalior was the Arbitrator, therefore, the Principal Court of original jurisdiction would be District Court, Gwalior, and not District Court, Shivpuri, and accordingly, the order passed by the District Court, Shivpuri, was set aside by holding that the said court had no territorial jurisdiction to entertain the application filed under Section 34 of the Arbitration and Conciliation Act. It is further submitted that by order dated 10.09.2025 passed in RP No.1545/2025 (Sanjay Kumar Vs. National Highways Authority of India Ministry of Road Transport and Highways Government of India Thr and Others), this Court had modified the judgment dated 25.07.2025 passed in A.A. No. 37/2022 and had directed the trial Court to return the application filed by the applicant under Section 34 of the Arbitration and Conciliation Act so as to enable him to approach the appropriate forum, subject to principles of limitation. It is further submitted that this case is duly covered by the judgment dated 25.07.2025 passed by this Court in A.A. No.37/2022 as well as the order dated 10.09.2025 passed in R.P. No.1545/2025.

3. Per contra, the counsel for the respondent fairly conceded that the case in hand is duly covered by the judgment dated 25.07.2025 passed by this Court in A.A. No.37/2022 as well as the order dated 10.09.2025 passed in R.P. No.1545/2025

4. Heard the learned counsel for the parties.

5. This Court in the case of Sanjay Kumar & Ors. (supra) passed in A.A. No.37/2022 had passed the following judgment :

“This appeal, under Section 37(1)(C) of Arbitration And Conciliation Act, 1996, has been filed against the order dated 26.11.2021 passed by IV District Judge, Shivpuri (M.P.) in Case No.MJC AV 100/2015 by which an application filed by respondent under Section 34 of Arbitration and Conciliation Act has been allowed and award dated 18.05.2015 passed by Arbitrator-cum-Divisional Commissioner, Gwalior Division, Gwalior (M.P.) in Case No.102/11-12/Arbitration has been set aside.

2. The facts, necessary for disposal of present appeal, in short, are that on 27.09.2004 and 17.06.2005 a gazette notification was published by Ministry of Road Transport and Highways for acquiring the land situated in District Shivpuri, adjacent to the National Highway of Village Karera, Tahsil Karera, District Shivpuri (M.P.) for widening/construction of the National Highway No.25 and 76. On 19.05.2005 and 05.05.2005 a Gazette Notification was published as per Section 3(D) of the National Highways Act and the scheduled land stood absolutely vested in the Central Government free from all encumbrances. In Case No.07/2004-05/v-82 the order/award was passed by the Sub Divisional Officer-cum-Competent Authority Land Acquisition National Hi