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TMI Blog2002 (1) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2. An agreement was entered into between the petitioners and the respondents on 22-2-2000 under which the petitioners have sold 100 per cent of the equity shares of NTPL with product rights, patent and trade mark to the respondents. The agreed operational terms and conditions were incorporated in the agreement dated 22-2-2000 which were required to be performed and discharged by both the parties of the agreement. The petitioners as required by the respondent company opened a bank account with the State Bank of Bikaner and Jaipur and it was resolved that it would be operated on behalf of the respondent company by the petitioner No. 2 as an authorised signatory of the company, the office of the respondent company started functioning at Jaipur with the employees of NTPL who were given appointment letters by the respondent company and some more employees were employed for running the business. The amount of cash of Rs. 100 lakhs and its mode of payment were also incorporated in the agreement. According to the petitioners, right from the beginning, the respondents have been committing breach of the contract to discharge their obligations under the contract in many ways and more p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red Judge of this Hon ble Court to be the sole Arbitrator in the matter. This is however without prejudice to the contentions of the respondents with respect to the claim of the petitioner. In other words, the respondents do not admit the claim of the petitioner. In other words, the respondents do not admit the claim of the petitioner at all". 6. As already noticed, the agreement provides for resolution of the disputes by appointment of an arbitrator and the respondents have also agreed for the appointment of a retired Judge of this Court to be the sole arbitrator in the matter. 7. In view of the agreement reached between the parties, I hereby appoint Sri Justice T.N.C. Rangarajan, a retired Judge of this Court residing at 502, Capri Towers, Srinagar Colony, Hyderabad as sole arbitrator to resolve the disputes between the parties. The arbitrator immediately after entering upon the reference may issue notice to both the parties and proceed further. The arbitrator is at liberty to fix his fee and collect the same from both the parties equally. However, both the parties are directed to deposit with the arbitrator a sum of Rs. 25,000 each as initial remuneration within four wee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before it". This section corresponds to article 9 of the UNCITRAL Model Law. It also corresponds to section 41( b ) read with Second Schedule to the Arbitration and Conciliation Act, 1940 ( the 1940 Act ). Somewhat similar provision is contained in section 44 of the English Arbitration Act, 1996. Under section 41( b ) of the 1940 Act, the Court had powers to grant interim reliefs for the purpose of and in relation to arbitration proceedings. Section 41( b ) was interpreted to mean that the Court could grant interim relief if the arbitration proceedings were pending either before the arbitrator or before the Court. Pendency of any proceedings in Court in relation to the arbitration proceedings was a pre-condition for the exercise of power by the Court to grant interim relief under section 41( b ) of the 1940 Act. 10. Under section 9, the Court may, on application by a party, grant interim relief before or during arbitral proceedings or at any time after making of the arbitral award but before it is enforced . Thus, under section 9, a party can make application for grant of interim reliefs of protection as provided therein not only during the arbitral proceedings but even befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is no independent power de hors section 9. But the question in the instant case is whether the Andhra Pradesh High Court can exercise jurisdiction when the application under section 9 is made. 15. The Court is defined under section 2(1)( e ) of the said Act which reads as under : "( e ) Court means 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, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes." 16. The forum for seeking interim measure pending arbitration will be the same to whose jurisdiction, the contract given rise to the arbitral dispute is subjected. 17. The State of Andhra Pradesh has enacted Civil Courts Act wherein three types of Courts are established and the High Court has power under section 33 of the Civil Court Act to receive suit, appeal or other proceeding only when District Court or the Court of Senior Civil Judge or the Court of J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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