M/S. L & T Niro Limited vs M/S. S.R.P. Industries Limited
2001 Latest Caselaw 749 Del

ORDER

J.D. Kapoor , J.

1. This is a petition under Section 11(6)(b) of the Arbitration & Conciliation Act, 1996 seeking an appointment of Arbitrator/Umpire for settlement of disputes and differences between the parties.

2. The only objection of the learned counsel for the respondent is that this Court has no territorial jurisdiction as the contract was to be performed in Varansi. Admittedly the respondent/s company has a subordinate office in Delhi. In view of the fact that the company has a subordinate office in Delhi, this Court has territorial jurisdiction office in Delhi, this Court has territorial jurisdiction under Section 20 of the Code of Civil Procedure which provides as under :-

Section 20 - Other suits to be instituted where defendants reside or cause of action arises : Subject to in a Court within the local limits of whose jurisdiction-

(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or

(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or

(c) the cause of action, wholly or in part, arises.

Explanation:

A corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any any cause of action arising it any place where it has also a subordinate office, at such place.

3. The explanation attached to the Section 20 came up for consideration in M/s Patel Roadways Limited Vs. M/s Prasad Trading Company wherein it was held that it is the choice of the plaintiff to file a suit held that it is the choice of the plaintiff to file a suit where subordinate office of the defendant is situated and he cannot be compelled to file a suit at the place where principal office alone is situated.

4. As a result, the petition is allowed and Hon'ble Mr. Justice Awadh Bihari Rohtagi, Retired Judge of this Court is here by appointed an Arbitrator. The learned Arbitrator shall fix this own fees. Parties are directed to appear before the learned Arbitrator on 10th July, 2001 at 4.00 P.M.

5. The Petition as well as IA stands disposed of.