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2004 (2) TMI 357 - HC - Companies Law

Issues:
1. Jurisdiction of Civil Court under Arbitration and Reconciliation Act, 1996.
2. Applicability of Civil Procedure Code (CPC) in arbitration proceedings before Civil Court.

Issue 1: Jurisdiction of Civil Court under Arbitration and Reconciliation Act, 1996:

The matter involved a challenge to an award passed by the Arbitral Tribunal, which was taken to the Civil Court under section 34 of the Arbitration and Reconciliation Act, 1996. The petitioner failed to appear before the Lower Court, leading to the dismissal of the application. Subsequently, the petitioner filed for restoration of the application, which was also dismissed. The question referred to the Division Bench was whether the Chief Judge of the Civil Court had the jurisdiction to dismiss the application in default under the 1996 Act. The petitioner argued that the Civil Court had no authority to dismiss the application in default as the CPC was not applicable to proceedings under the 1996 Act. The petitioner contended that the Civil Court could only allow or dismiss the application under section 34 of the 1996 Act based on the grounds specified therein. The petitioner highlighted that the provisions of the 1996 Act did not make the CPC applicable to such cases, emphasizing the independence of the Arbitral Tribunal from CPC and Evidence Act.

Issue 2: Applicability of Civil Procedure Code (CPC) in arbitration proceedings before Civil Court:

The respondent argued that the Civil Court had the power to intervene in arbitration matters as provided under the 1996 Act. Referring to a Supreme Court judgment, the respondent contended that the Civil Court could exercise its powers before, during, and after arbitration proceedings. The Supreme Court's ruling in ITI Ltd. v. Siemens Public Communications Network Ltd. was cited, which clarified that the Code of Civil Procedure could apply to proceedings in Civil Court unless expressly prohibited. The Supreme Court emphasized that the power of revision under section 115 of the CPC was not excluded by the 1996 Act, allowing the Civil Court to exercise supervisory jurisdiction over arbitration matters. The judgment established that the CPC would be applicable in Civil Court proceedings under the 1996 Act unless specifically barred, even if certain provisions like second appeal were restricted under the Act.

In conclusion, the High Court held that the Civil Procedure Code is applicable to proceedings before the Civil Court under the Arbitration Act, 1996, unless expressly prohibited. The Court clarified that the Civil Court had the power to entertain applications under the 1996 Act and could utilize all necessary powers for disposal of such applications under the CPC. The reference question was answered affirmatively, confirming the jurisdiction of the Civil Court in arbitration matters and the applicability of the CPC in such proceedings. The revision was not disposed of, and it was directed to be reviewed by the Single Judge for further consideration on its merits.

 

 

 

 

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