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2004 (1) TMI 391

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..... ant to question, involved are discussed here. 3. This appeal has been reported by the stamp reporter as cognizable by Single Judge on the basis that the valuation of the appeal for the purposes of jurisdiction has been shown to be below Rs. 1 lakh. At the time of hearing of the appeal for admission a preliminary objection was raised by Shri H.N. Singh, the learned counsel for the caveator-respondents disputing the valuation of the appeal being below Rs. 1 lakh. He submitted that the valuation of the appeal for the purpose of jurisdiction is above Rs. 1 lakh and is thus cognizable by a Division Bench under the rules of the court. On this preliminary issue the counsel for the parties were heard. 4. Facts for the disposal of the present issue lie in a narrow campus. The appeals arises out of an application filed under section 9 of the Arbitration and Conciliation Act, 1996 by the present appellants for grant of an injunction order. The said application has been rejected by the District Judge, Kanpur. 5. The appellant No. 1 is a partnership firm constituted in pursuance of the partnership deed dated 3rd of July, 1982. The appellant No. 2 and the respondent Nos. 1 and 2 are .....

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..... No. 3 (Annexure C) stopping payments from the Bank Account of the firm, M/s. Modern Metal Industries, viz., Bank Account C/C A/c No. 01650061063, in pursuance of the letter written by Respondent Nos. 1 and 2. ( b )pass an ad interim order commanding the Respondents to revoke the instruction and action of stoppage of payment from the Bank Account of the firm, M/s. Modern Metal Industries, viz., Bank Account C/C A/c No. 01650061063 forthwith and further commanding them to permit payments to be made from the said Account without any obstruction and hindrance and in accordance with law; ( c )confirm the ad interim orders above-mentioned; ( d )pass any other order and/or grant any other relief as this Hon ble Court may deem fit and proper; ( e )award costs of the application." In para 13 of the said application it has been stated that several new orders for supplies were obtained by the appellant No. 2 for the firm from the Ministry of Defence, Government of India. These orders are contracts where under the firm has to perform its part of obligation of manufactur-ing and supplying products to the Defence Force within time bound period and within fixed and stipulated de .....

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..... en the right of a partner to operate the bank account and the amount standing in the bank account. The right to operate a bank account of a partner is incapable of valuation and as such it is open to the appellant to put any valuation to this right. 10. Learned counsel for the respondents made a reference to certain provisions of C.P.C. such as sections 6, 21(2) Order 7 Rule 1(+)( i ) , Order 7 Rule 2(4) and Order 14 Rule 2(2) and submitted that a Single Judge has a limited pecuniary jurisdiction. A Division Bench has unlimited pecuni- ary jurisdiction. Reliance was placed by him upon - Commercial Aviation Travel Co. v. Mrs. Vimla Panna Lal AIR 1988 SC 1636 (para 23) which reads as follows : "23. We are also of the view that the plaintiff cannot whimsically choose a ridiculous figure for filing the suit most arbitrarily where there are positive materials and/or objective standards of valuation of the relief appearing on the face of the plaint. These materials or objective standards will also enable the court to determine the valuation for the purpose of Order VII, rule 1( b ) of C.P.C." 11. In Kamaleshwar Kishore Singh v. Paras Nath Singh [2002] 1 SCC 304, it ha .....

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..... s of the Act. Section 2( e ) of the Act defines the word "Court", which reads as follows : "Court means the principal civil court of original jurisdiction in a district, and includes High Court in exercise of its ordinary and original civil jurisdiction, having jurisdiction to decide the questions forming subject- matter of the arbitration if the same had been subject-matter of a suit , but does not include any civil court of a grade inferior to such Civil Court, or any courts of small causes." [Emphasis supplied] Section 9 of the Act which provides interim measures etc. by a court says that a party may, before or during arbitration proceedings apply to a Court . A joint reading of the aforesaid two sections in my mind provides the answer to the issue raised above . The crucial words are subject-matter of the arbitration if the same had been subject-matter of the suit. The court having jurisdiction to decide the questions forming subject-matter of the arbitration if the same had been subject-matter of a suit will have jurisdiction to entertain and decide an application under section 9 of the Act excluding any civil court of a grade inferior to such principal civil court or .....

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..... on 2( b ) of section 85 says that notwithstanding the repeal of the Arbitration Act, 1940 etc. or rules made and notifications published, under the Arbitration Act, 1940 shall to the extent to which they are not repugnant to this Act, be deemed respectively to have been made or issued under this Act. The Allahabad High Court has framed Rule in exercise of power under section 44 of the Arbitration Act, 1940. None of the counsel could point out any other rules framed by this court under the Arbitration and Conciliation Act, 1996. The Arbitration Rules framed as stated above are mentioned in Chapter XXXI of the Allahabad High Court Rules. These rules do not provide any mode for valuing the petition for the purpose of jurisdiction. 15. Schedule II to the Court Fees Act, 1870 Item No. 18 prescribes court fees under the Arbitration Act, 1940 for an application under section 14 or 20 of the Arbitration Act, 1940 and other applications under the Arbitration Act, 1940. Similarly 11-A of the Schedule provides court fees payable on memorandum of appeal under section 39 of the Arbitration Act, 1940. No specific provision for payment of court fees under the Act, 1996 could be pointed out by .....

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