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TMI Blog2004 (2) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... bhijat P. Medh for the Respondent. JUDGMENT Ruma Pal, J. - Leave granted. 2. This appeal has been preferred from an interim order granted by the Division Bench of the Bombay High Court staying the arbitration proceedings before the Uttar Pradesh Industry Facilitation Council (referred to as the Council ) set up under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (referred to as the Act ). 3. We are not concerned with the merits of the proceedings initiated by the appellant before the Council. The only question is whether the High Court had the jurisdiction to pass the impugned order. 4. The chronology of events which are relevant for the purposes of this appeal, commenced with a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Act and, therefore, illegal, null and void. A permanent order of injunction was also asked for restraining further proceedings before the Council. An application was filed in the suit for interim relief by the respondent No. 1. By an order dated 5th February, 2002 the City Civil Court granted an ad interim injunction staying the proceedings under the Act. The application for interim relief was, however, ultimately dismissed by the City Civil Court on 28th November, 2002 principally on the ground that the claim had been filed by the appellant under section 6(2) read with section 8(1) of the Arbitration and Conciliation Act, 1996 (which we will refer to as the 1996 Act) and in view of section 5 of the 1996 Act no Court could interv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rator or conciliator in respect of the matters referred to in that sub-section and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to such disputes as if the arbitration or conciliation were pursuant to an arbitration agreement referred to in sub-section (1) of section 7 of that Act." Sub-section (2) of section 6 expressly incorporates the provisions of the 1996 Act. Apart from such express incorporation sub-section (2) of section 6 goes further and creates a legal fiction whereby disputes referred are to be deemed to have been made pursuant to an arbitration agreement as defined in section 7 of sub-section (1) of the 1996 Act. 9. Incorporation of the provisions of the 1996 Act into section 6(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Civil Court was right in its approach when it said that the Court could only intervene in respect of matters expressly provided for in the 1996 Act. The validity of the proceedings before the Arbitral Tribunal is an issue which the Council, and not the Court, could decide under section 16 of the 1996 Act. Sub-section (1) of section 16 opens with the words "The Arbitral Tribunal may rule on its jurisdiction. . . ." It has been held by this Court that the Arbitral Tribunal s authority under section 16 is not confined to the width of its jurisdiction but goes to the very root of its jurisdiction - Konkan Railway Corpn. Ltd. v. Rani Construction (P.) Ltd. [2002] 37 SCL 407 (SC). Therefore, the Council can go into the question whether its author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Labour Court or a Tribunal for adjudication "where any industrial dispute exists or is apprehended". Therefore, if there was no such industrial dispute there could be no arbitral reference. This Court therefore held that the disputes spilt "into areas where the arbitrator deriving authority under section 10A has no jurisdiction". The provisions of section 10A are entirely different from the provisions of section 16 of the 1996 Act. There is in this case, no question of dispute spilling into areas where the Arbitral Tribunal does not have jurisdiction. Under the 1996 Act, the Arbitral Tribunal has been given a very wide and deep area of operation and it is the Court s powers which have been statutory curtailed. 12. This brings us to the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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