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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 2(1)(e) of the Arbitration and Conciliation Act, 1996
  • Section 34 of the Arbitration and Conciliation Act, 1996
  • Section 34 of the Act
  • Section 34 or appeal under Section 34 or appeal under Section 37 of the Arbitration and Conciliation Act, 1996
  • the provisions of the Arbitration and Conciliation Act, 1996
  • Section 2(1)(e) of the Act
  • Section 11(6) of the Arbitration and Conciliation Act, 1996
  • Section 37 of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 2(1)(e) of the Arbitration and Conciliation Act, 1996
  • Section 34 of the Arbitration and Conciliation Act, 1996
  • Section 34 of the Act
  • Section 34 or appeal under Section 34 or appeal under Section 37 of the Arbitration and Conciliation Act, 1996
  • the provisions of the Arbitration and Conciliation Act, 1996
  • Section 2(1)(e) of the Act
  • Section 11(6) of the Arbitration and Conciliation Act, 1996
  • Section 37 of the Act
Smart Summary

Factual and Procedural Background

The respondent obtained an order from the Jharkhand High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 appointing Justice P.K. Sarkar (Retd.) as sole arbitrator. The arbitrator rendered an award on 28-9-2006.

The appellant challenged that award by filing a petition under Section 34 of the Act before the Jharkhand High Court. The High Court Registry objected, contending that the petition was not maintainable there because “court” under Section 2(1)(e) refers to the principal civil court of original jurisdiction. The learned Single Judge accepted the objection and dismissed the Section 34 petition for want of jurisdiction.

The appellant then preferred an appeal under Section 37 before the then Chief Justice of the High Court, who likewise dismissed the appeal, reiterating that both the Section 34 petition and any appeal under Section 37 had to be presented before the competent civil court and not the High Court.

The present appeal before the Supreme Court challenges the Chief Justice’s order dated 4-1-2008.

Legal Issues Presented

  1. Whether a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award, when the arbitrator was appointed by the High Court under Section 11(6), can itself be filed before that High Court or must be filed before the “court” defined in Section 2(1)(e) (i.e., the principal civil court of original jurisdiction).
  2. Consequent to the dismissal of the Section 34 petition on the ground of non-maintainability, whether an appeal under Section 37 should have been heard by a Division Bench of the High Court.

Arguments of the Parties

Appellant's Arguments

  • Contended that the appeal under Section 37, challenging the Single Judge’s order, ought to have been heard by a Division Bench because it was an appeal from a Single Judge’s decision.
  • Argued that the High Court should have entertained the Section 34 petition.
  • Expressed willingness to avoid further delay and sought expeditious disposal of the matter.

Respondent's Arguments

  • Supported prompt adjudication and submitted that the matter required urgent attention by the proper forum.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court examined the statutory framework:

  • Section 2(1)(e) defines “court” as the principal civil court of original jurisdiction in a district (and in specified circumstances, the High Court exercising original civil jurisdiction). Hence, jurisdiction over a Section 34 petition lies with that court, not automatically with the High Court that appointed the arbitrator.
  • Because the Single Judge dismissed the petition purely on the ground of maintainability, there was no decision “refusing to set aside an arbitral award” under Section 37(1)(b). Therefore, the appellant’s reliance on Section 37 to justify a Division Bench hearing was “prima facie untenable.”

Finding no error in the conclusion that the High Court lacked jurisdiction over the Section 34 petition, the Court nonetheless acknowledged the protracted procedural delays. It therefore ordered transfer of the petition to the competent civil court so that the dispute can be decided on merits without further jurisdictional wrangling.

Holding and Implications

Appeal DISPOSED OF; petition under Section 34 remitted to the District Judge, East Singhbhum.

The Supreme Court modified the earlier orders of the Single Judge and the Chief Justice to the extent necessary to facilitate transfer of records. The parties must appear before the District Judge on 29-5-2009, and the assigned court is directed to dispose of the Section 34 petition preferably within six months. The decision clarifies that the mere fact that a High Court appointed an arbitrator under Section 11(6) does not confer jurisdiction on that High Court to entertain a subsequent Section 34 challenge; such petitions must be filed in the court specified in Section 2(1)(e). No new legal precedent was set beyond this clarification of statutory jurisdiction.

    Hindustan Copper Limited v. Nicco Corporation Limited .

    Dr. M.K Sharma, J.— This appeal is directed against the judgment and order passed by the learned Chief Justice of the Jharkhand High Court taking up the appeal and disposing of the said appeal by his order dated 4-1-2008.

    2. The appellant herein filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the legality of the award dated 28-9-2006 passed by the sole arbitrator with a prayer to set aside the same. The learned Single Judge before whom the petition was filed held the same to be not maintainable. On appeal filed the Chief Justice held that such an appeal is also not maintainable.

    3. We have heard the learned counsel appearing for the parties.

    4. It is disclosed from the records that an application was filed by the respondent herein before the Jharkhand High Court at Ranchi under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying for the appointment of an arbitrator to adjudicate upon and decide the disputes arising between the parties in terms of the arbitration agreement.

    5. The Jharkhand High Court entertained the said application and appointed Justice P.K Sarkar, who is a retired Judge of the Patna High Court to adjudicate upon and decide the disputes between the parties. Pursuant to the said order, the learned arbitrator entered into the reference and passed the award on 28-9-2006.

    6. After the award was passed, the appellant herein filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the award dated 28-9-2006 passed by the sole arbitrator. The Registry filed an objection regarding the maintainability of the aforesaid petition under Section 34 of the Act. According to the Registry, against the aforesaid arbitration award, a petition under Section 34 of the Act should have been filed before the appropriate court as defined under Section 2(1)(e) of the Arbitration and Conciliation Act, 1996.

    7. The learned Single Judge considered the aforesaid objection raised by the Registry of the High Court and agreed with the said objection and held that the aforesaid petition filed by the appellant under Section 34 of the Arbitration and Conciliation Act, 1996, is not maintainable. Being aggrieved by the said order, the appellant filed an appeal invoking the provision of Section 37 of the Act.

    8. The said appeal was entertained by the then Chief Justice of the High Court of Jharkhand. After the hearing, the then Chief Justice dismissed the said appeal on the ground that the aforesaid application under Section 34 or appeal under Section 34 or appeal under Section 37 of the Arbitration and Conciliation Act, 1996, is not maintainable before the High Court. In other words, according to the Chief Justice the same should have been filed before an appropriate court as envisaged under the provisions of the Arbitration and Conciliation Act, 1996.

    9. Counsel appearing for the appellant has submitted before us that since the aforesaid appeal which the appellant had filed was an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, it should have been entertained and decided by a Division Bench, since the order of the learned Single Judge was under challenge. We are unable to accept the aforesaid contention which is found to be prima facie untenable in view of and in the light of the provisions of the Arbitration and Conciliation Act, 1996.

    10. The said application under Section 34 is to be filed before a court which is empowered and has the jurisdiction to entertain and decide such objection filed under Section 34 of the Act. The expression “court” is defined under the provision of Section 2(1)(e) of the Act, meaning the Principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration.

    11. Section 37 of the Act on which emphasis was given by the counsel for the appellant applies only when the preconditions mentioned therein are satisfied. The submission of the learned counsel appearing for the appellant is that since the learned Single Judge refused to set aside the arbitration award, therefore an appeal could be preferred by the appellant as envisaged under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996.

    12. We are again unable to persuade ourselves to accept the aforesaid contention of the counsel appearing for the appellant for the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, was dismissed on the ground of maintainability of the petition and not on the ground by refusing to set aside the arbitration award.

    13. Being faced with the aforesaid situation, the counsel appearing for the appellant states that he would not like to delay the proceeding and rather would desire that the proceedings are expedited. In terms of his statement and prayer and also in view of the submission of the counsel appearing for the respondent who has submitted that the matter requires urgent attention of the court, we remit the matter and the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, filed by the appellant to the civil court competent to hear and decide the same as envisaged under Section 2(1)(e) of the Act.

    14. The petition under Section 34 of the Act filed by the appellant shall now be listed before the District Judge, East Singhbhum, where the parties shall appear on 29-5-2009, when the District Judge shall allot the petition under Section 34 to an appropriate court in terms of the provision of Section 2(1)(e) of the Act.

    15. We also feel that the matter is pending for a very long period and shuttling from one court to other court. Therefore, the court to which the matter is entrusted to by the District Judge shall make all endeavour to dispose of the same as expeditiously as possible preferably within a period of six months from the date of receiving the records.

    16. The orders of the learned Single Judge as also of the then Chief Justice of the Jharkhand High Court stand modified to the aforesaid extent.

    17. We are informed that the petition under Section 34 of the Arbitration and Conciliation Act, 1996, is now lying in the Registry of the High Court of Jharkhand. The same shall be transmitted immediately to the District Judge in terms of this order. The appeal is disposed of accordingly. Copy of this order be given dasti to the parties.

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    Hindustan Copper Limited v. Nicco Corporation Limited .
    (May 20, 2009)