2007 (4) TMI 381 - HC - Companies Law

Summary

Issues Involved:
1. Definition of "Court" u/s 2(e) of the Arbitration and Conciliation Act, 1996.
2. Jurisdiction of Civil Judge, Senior Division vs. District Court for petitions u/s 34 of the Act of 1996.

Summary:

1. Definition of "Court" u/s 2(e) of the Arbitration and Conciliation Act, 1996:
The primary issue was to determine whether the term "Court" as defined u/s 2(e) of the Arbitration and Conciliation Act, 1996 refers to the Civil Judge, Senior Division or the District Court. The court analyzed the definition of "Court" under both the Act of 1996 and the Act of 1940, noting that the definition in the Act of 1996 is more restrictive. The term "Court" means the principal Civil Court of original jurisdiction in a district, which includes the High Court in exercise of its ordinary original civil jurisdiction but excludes any civil court of a grade inferior to such principal Civil Court or any Court of Small Causes.

2. Jurisdiction of Civil Judge, Senior Division vs. District Court for petitions u/s 34 of the Act of 1996:
The court examined whether the Civil Judge, Senior Division, or the District Court should be considered the principal court of original jurisdiction for the purpose of petitions u/s 34 of the Act of 1996. The court concluded that the District Court is the principal civil court of original jurisdiction in a district. The Civil Judge, Senior Division, although a civil court of original jurisdiction, is inferior in grade to the District Court and thus does not qualify as the principal court of original jurisdiction. The court emphasized that the legislative intent was to confer jurisdiction on the highest judicial authority in a district, which is the District Court.

Conclusion:
The court answered the formulated question by stating that the principal civil court of original jurisdiction in a district for the purpose of a petition u/s 34 of the Act of 1996 is the District Court and does not include any other court inferior to the District Court. All matters were directed to be placed before the appropriate learned Single Judges for disposal in light of this judgment.