2013 (3) TMI 808 - HC - Indian Laws

Summary

Issues Involved:
1. Application u/s 24 of the Code of Civil Procedure, 1908 for transfer of proceedings.
2. Jurisdiction of courts under the Arbitration and Conciliation Act, 1996.
3. Applicability of Section 24 of the Code of Civil Procedure, 1908 to arbitration proceedings.

Summary:

1. Application u/s 24 of the Code of Civil Procedure, 1908 for transfer of proceedings:
The Petitioner filed an application u/s 24 of the Code of Civil Procedure, 1908, seeking the transfer of Miscellaneous Application Nos. 229 and 230 of 2012, filed by the Respondents under Section 34 of the Arbitration and Conciliation Act, 1996, from the District Court, Thane to the Original Side of the Bombay High Court. The Petitioner argued that this transfer was necessary to avoid conflicting orders and judgments, as the Arbitration and Conciliation Act, 1996 mandates that one civil court should decide all matters pertaining to the arbitral reference.

2. Jurisdiction of courts under the Arbitration and Conciliation Act, 1996:
The Petitioner contended that both the Original Side of the Bombay High Court and the District Court at Thane have jurisdiction over the subject matter in issue, as admitted by the Respondents. The Petitioner relied on Sections 2(e), 34, and 42 of the Arbitration and Conciliation Act, 1996, which suggest that all proceedings in a reference should be dealt with by one court. The Respondents, however, argued that there is no power in the court to transfer the proceedings and that Section 24 of the Code of Civil Procedure, 1908 does not apply to proceedings under Section 34 of the Arbitration and Conciliation Act, 1996.

3. Applicability of Section 24 of the Code of Civil Procedure, 1908 to arbitration proceedings:
The court examined whether Section 24 of the Code of Civil Procedure, 1908 is applicable to arbitration proceedings. The court concluded that the term "proceeding" used in Section 24 is comprehensive and includes every adjudication before a court. Thus, applications under Section 34 of the Arbitration and Conciliation Act, 1996 are proceedings before a civil court, and the power to transfer them under Section 24 of the Code of Civil Procedure, 1908 is vested in the District Court or High Court. The court found no provision in the new Arbitration Act that prohibits the exercise of powers conferred by Section 24 of the Code of Civil Procedure, 1908.

Conclusion:
The court allowed the application, transferring the proceedings from the District Court, Thane to the Original Side of the Bombay High Court to avoid conflicting judgments and orders. The court clarified that the issue of jurisdiction and competency of the court to decide the applications under Section 34 of the Arbitration and Conciliation Act, 1996 is not concluded by this order, and all contentions are kept open.