2004 (3) TMI 410 - HC - Companies Law

Summary

Issues Involved:
1. Jurisdiction of the Bangalore Court under Section 9 of the Arbitration and Conciliation Act, 1996.
2. Interpretation of the term "Court" under Section 2(1)(e) of the Arbitration and Conciliation Act, 1996.
3. Parties' ability to confer jurisdiction by agreement.

Detailed Analysis:

1. Jurisdiction of the Bangalore Court under Section 9 of the Arbitration and Conciliation Act, 1996:
The appellant, Globe Co-generation Power Limited, filed an application under Section 9 of the Arbitration and Conciliation Act, 1996, before the VI Additional City Civil Judge, Bangalore, seeking interim measures against the respondent. The Bangalore Court dismissed the application on the ground of lack of jurisdiction. The appellant contended that the Bangalore Court had jurisdiction based on the Project Development Agreement (PDA), which specified Bangalore as the place of arbitration and jurisdiction for disputes.

2. Interpretation of the term "Court" under Section 2(1)(e) of the Arbitration and Conciliation Act, 1996:
Section 2(1)(e) of the Act defines "Court" as 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 if the same had been the subject-matter of a suit. The Court emphasized that the jurisdiction of a court under the Act is determined by the subject-matter of the dispute and the location of the property involved, not by the parties' agreement.

3. Parties' ability to confer jurisdiction by agreement:
The appellant argued that the parties had agreed to confer jurisdiction on the Bangalore Court through the PDA. The Court rejected this argument, stating that parties cannot confer jurisdiction on a court by agreement if the court does not have jurisdiction under the law. The Court cited several precedents, including the Supreme Court's judgment in Modi Entertainment Network v. W.S.G. Cricket Pte. Ltd., which held that parties cannot confer jurisdiction on a court where none exists.

Conclusion:
The High Court of Karnataka upheld the decision of the VI Additional City Civil Judge, Bangalore, holding that the Bangalore Court did not have jurisdiction to entertain the application under Section 9 of the Arbitration and Conciliation Act, 1996. The Court concluded that the principal civil court of original jurisdiction in Belgaum district, where the property and the parties were located, was the appropriate court to entertain the application. The appeal was dismissed with no order as to costs.