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TMI Blog2007 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench has been, accordingly, constituted by the Hon'ble the Chief Justice. 2. In Omni Bus Industrial Development Corporation, the learned Judge while dealing with the definition of "Court", under section 2 ( e ) of the Arbitration and Conciliation Act, 1996 (for short the "Act of 1996"), has taken a view that the Court of Civil Judge, Senior Division, Goa being the principal Court of Original Civil Jurisdiction, would be entitled to hear an appeal under section 34 of the Act of 1996, while in Cotton Corporation of India Ltd., another learned Single Judge has taken a view that the District Judge of a District and not the Civil Judge, Senior Division, would be the Principal Court of Original Civil Jurisdiction. This view was taken with reference to the provisions of section 8 of the Act of 1996. It is against the backdrop we have formulated the following question of law that is required to be addressed by us in this judgment: "Whether it is the Civil Judge, Senior Division or the District Court which should be constructed as being the Principal Court of Original Jurisdiction for the purpose of a petition under section 34 of the Arbitration and Conciliation Act, 1996." 3. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Corporation as also various provisions in the Act of 1996, the, Bombay Civil Courts Act, 1869, Goal, Daman and Diu Civil Courts Act, 1965, Code of Civil Procedure as also the judgments of the other High Courts. The judgment of other High Courts relied upon by the learned counsel are in I.T.I. Ltd. Allahabad v. District Judge, Allahabad AIR 1988 Allahabad 313., Surat Singh v. State of Himachal Pradesh 2004 (1) R.A.J. 302 (HP), Globsyn Technologies Ltd., Calcutta v . Eskaaycee Infosys, Visakhapatnam 2004(1) R.A.J. 671 (A.P.) as also the judgment of the Supreme Court in S.B.P. Company v. Patel Engineering Ltd. 2006 (1) Bom. C.R. 585. In support of their contention, both Mr. Walawalkar and Mr. Kumbhakoni strenuously urged, that the term "Court" under section 2( e ) of the Act of 1996 will have to be construed to mean the District Court. They both rendered valuable assistance to us in deciding the issue involved in this reference. The reasons recorded by us in this judgment are based on their submissions and, therefore, we avoid to make specific reference to all submissions advanced by them. The other learned counsel appearing in these matters adopted the submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n; ( ii ) having jurisdiction to decide the question; forming the subject-matter of the Arbitration if the same had been subject-matter of a suit; and ( iii ) it does not include any Civil Court of a grade inferior to such principal an Civil Court , or any Court of small Causes. A careful glance at the definition of "Court", in the Act of 1996 and at the definition of "Court" occurring in the Act of 1940 would manifestly and very clearly demonstrate that in the Act of "1940 "Court" was defined to mean any Civil Court having jurisdiction to decide the questions forming the subject-matter of the reference as if the same had been the subject-matter of a suit. While under the Act of 1996, the meaning of the term "Court", was, however, narrowed down and confined to be "the principle Civil Court of the original jurisdiction in a District" and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the subject matter of the arbitration if the same had been the subject matter a suit, but does not include any civil court of a grade inferior to such Principal Civil Court or any Small Causes Court. The term "Court" has been used in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The parliament has, clearly, narrowed down the definition of the term "Court". The only condition contemplated in the definition of "Court" is that it should have jurisdiction to decide the questions forming the subject matter of the arbitration if the same had been the subject matter of a suit. In our opinion, the definition of "Court" in the Act of 1996, does not contemplate that such court should have jurisdiction over the subject matter of the dispute. What it means is the jurisdiction to decide "the question forming the subject matter of the arbitration" if the same had been the subject-matter of a suit. The pecuniary jurisdiction of a court, therefore, has no significance for the purposes of the Act of 1996. The Court, however, must have a territorial jurisdiction. The expression "subject matter of the arbitration", therefore, cannot be read to mean a court where the suit can be filed in respect of that cause of action and would, therefore, cover all the provisions from sections 16 to 20 of the Code of Civil Procedure. In other words, the pecuniary jurisdiction is no longer a material for deciding the jurisdiction of a court being the principal court of original jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "but does not include any civil court of a grade inferior to such principal court" is read, in our opinion, it means no court subordinate/inferior to the principal civil court of ordinary original civil jurisdiction in a district, would be covered within the meaning of "Court" as defined under section 2(e) of the Act of 1996. Similarly, insofar as the word "principal" is concerned, according to Black's Law Dictionary, it means chief; leading; most important or considerable; primary original, Highest in rank, authority, character, importance or degree. In Law Lexicon the word "principal" is described to mean highest in rank, authority, character, importance, or degree; most considerable or important; chief; main (as) the principal officers of a government, the principal men of a State; the principal productions of country, principals arguments in a case. The word "principal", thus, clearly indicate only one court being the highest in rank or chief. 12. In our opinion, a plain and literal reading of all the aforesaid words/expressions/terms employed in section 2 ( e ) clearly demonstrate the exact meaning of the term "court". It means the district court is the principal civil co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be the District Court". Similarly, the Supreme Court in Garhwal Mandal v. Krishna Travel Agency in Special Leave Petition (civil) Nos. 1834 of 2004 decided on 24.1.2007, while dealing with the question whether it could entertain all objections to the award and holding that even if the appointment of the Arbitrator is made by High Court or the Supreme Court, the principal civil court of original jurisdiction remains the same as contemplated under section 2 ( e ) of the Act of 1996, has observed that the principal civil court of original jurisdiction remains the "District Court" even if the appointment of the Arbitrator is made by the High Court. It is thus clear that the Legislature clearly cicumsentenced and specifically narrowed down the definition of "Court" to mean only the Court of principal civil original jurisdiction in a district and it is only the court of "District Judge" in a district which is such a "Court" of principal civil jurisdiction. 15. We further find support for the view from the language of the provisions contained in section 8 of the Act of 1996. This provision confers power to refer the parties to arbitration where there is an arbitration agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of a civil nature, applications or reference under the special Acts and miscellaneous applications. The Additional District Judge shall have jurisdiction to try such suits and to dispose of such applications or referencers. It further provides that where the Additional District Judge decrees and orders in such case are appealable, the appeal shall lie to the District Judge or to the High Court according to amount or value of the subject matter. Section 16, thus, says that the District Judge can refer any original suit and proceedings of civil nature to any Additional District Judge, who shall have jurisdiction to any such suit. Section 21 provides for number of subordinate civil courts. It says that there shall be in each district so many Civil Courts subordinate to the District Court as the State Government shall from time to time direct, provided that for special reasons it shall be lawful for the State Government at any time to close temporarily any such Subordinate Court. Section 24 provides for classes of the Civil Judges. The jurisdiction of a Civil Judge, Senior Division extends to all the original suits and proceedings of a civil nature. The other class is of Civil Judge, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n section 39 (2) of the Act of 1940 means a further appeal from an order passed in appeal under section 39 (1) and not an appeal under section 100 of the Code of Civil procedure. The Supreme Court has further proceeded to observe that if the expression 'second appeal' includes an appeal under the Letters Patent, it would be impossible to hold that notwithstanding the express prohibition an appeal under the Letters Patent from an order passed in appeal under sub-section (1), of section 39 of the Act of 1960, is competent. It is thus clear that no Letters Patent appeal would lie form an order in an appeal filed under section 37 of the Act of 1996. The second appeal contemplated under sub-section (3) of section 37 of the Act of 1996 means an appeal under the Letters Patent and since there is expressed prohibition to file such appeal no. letters patent would lie. Merely because the expression "second appeal" is used in this section does not mean an appeal under section 100 of the Code of Civil Procedure. This provision is consistent with the statement of objects and reasons which clearly states that enactment of the Act of 1996 is to minimise supervisory rule of the courts in a arbitra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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