The Supreme Court Bench has re-iterated that when the High Court does not possess original jurisdiction, the applications and proceedings of Section 34 of the Arbitration and Conciliation Act shall lie before the concerned District Court only.
Brief Facts
The present petition is preferred by the Respondent against the judgement and order passed by the HC of Orissa. The HC of Orissa allowed the appeal by setting aside the order of the District Court. As per the order passed by the HC, the application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Arbitration Act”) was dismissed and the matter was sent back to the concerned District Court to decide the Section 34 application.
Contentions of the Petitioner
The Petitioner contended that in accordance with the Section 42 and 11 of the Arbitration Act, the HC which has exercised jurisdiction under Section 11 would be the “Court” for the purposes of Section 34.
Observation of the Court
The Court propounded that the HC of Orissa does not have original Jurisdiction and in such cases the concerned District Court would be the right “Court”. Therefore, the proceedings of Section 34 should be made before the concerned District Court as given under Section 2(e) and not the HC without original jurisdiction.
Decision of the Court
Based on the reason aforementioned, the SC dismissed the present petition.
Cause Title: Yashpal Chopra & Co. v. Union of India & Ors.
Citation: Special Leave to Appeal (C) No. 18324/2022
Bench: Hon’ble Mr. Justice M.R. Shah ; Hon’ble Mr. Justice M.M. Sundresh
Decided on: October 31st, 2022
Read Judgment @LatestLaws.com:
Picture Source :