2007 (2) TMI 336 - HC - Companies Law

Summary

Issues involved: Territorial jurisdiction for filing an appeal under section 45 of the Arbitration and Conciliation Act, 1996 u/s 10F of the Companies Act.

Territorial Jurisdiction under Companies Act:
- Respondent argued appeal should be in Punjab and Haryana High Court u/s 10(1)(a) as company's registered office in Mohali.
- Cited Stridewell Leathers case where SC held jurisdiction based on registered office location.
- Appellant argued section 10F not applicable as arbitration not under Companies Act.
- Supported by Hind Samachar case from Punjab and Haryana High Court.
- Contention that appeal should be under section 50 of Arbitration Act against Company Law Board order.

Jurisdiction Determination:
- Court to decide jurisdiction based on Companies Act or Arbitration Act.
- Section 10(1)(a) requires appeal in High Court where company's registered office is situated.
- Section 10F sets time limit for filing appeal against Company Law Board order.
- Company Law Board's power under Companies Act challenged by respondent.
- Application under Arbitration Act ancillary to Companies Act disputes.
- Filing under Arbitration Act does not override Companies Act provisions.
- Dispute on shares and debentures falls under Companies Act jurisdiction.
- Section 50 of Arbitration Act applies to arbitrator appointment disputes only.

Judgment:
- Appellant filed appeal in wrong forum, should have approached Punjab and Haryana High Court.
- Appellant's remedy under section 10(1)(a) of Companies Act, not section 50 of Arbitration Act.
- Appeal dismissed for lack of territorial jurisdiction, not on merit.