When Parties Decide The Place Of Arbitration, Only The HC Having Territorial Jurisdiction Over That Place Can Entertain Application U/S 11 Of Arbitration Act: Orissa HC [Read Order]
4 years, 2 months ago

When Parties Decide The Place Of Arbitration, Only The HC Having Territorial Jurisdiction Over That Place Can Entertain Application U/S 11 Of Arbitration Act: Orissa HC [Read Order]

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The Orissa High Court on Thursday refused to entertain a petition filed under Section 11 of the Arbitration and Conciliation Act of India, 1996 observing that "the Court does not have the territorial jurisdiction to entertain the petition" The Bench of Chief Justice Mohammad Rafiq was hearing an application filed under Section 11 of the Arbitration and Conciliation Act, 1996 by the petitioner-M/s. Arguments Put forth Petitioner's Arguments - The counsel for the petitioner submitted that even if the parties in clause 15 of the Dealership Agreement agreed that the place of arbitration shall be at 'Pune', the jurisdiction of this Court to entertain the present application filed under Section 11 of the Act, 1996 is not excluded as the cause of action, wholly, or at least in part, has arisen in the territory of the State of Orissa. Further, the Orissa High Court in the present matter also observed that the Supreme Court, in a recently delivered decision in Brahmani River Pellets Limited vs. Kamachi Industries Ltd., 5 SCC 462, had considered the question as to whether the Madras High Court could exercise jurisdiction under Section 11 of the Act, 1996 to appoint the sole arbitrator at the instance of the respondent,?. Significantly, in Brahmani, the Supreme Court held that - when the parties agreed to have the "venue" of arbitration at a particular place, only the High Court which has jurisdiction over the said place can entertain the petition seeking appointment of Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. Notably, the Orissa High Court in the present matter, cited the ruling of the Supreme Court in BGS SGS Soma JV vs. NHPC Limited, 4 SCC 234 as well, wherein the Apex Court examined Sections 20 and 2 of the Act of 1996, in the context of clause 67.3 of the agreement executed between the parties in that case which provided that "Arbitration proceedings shall be held at New Delhi/Faridabad, India".

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