Case Note & Summary
The dispute arose between the General Manager, East Coast Railway and Hindustan Construction Co. Ltd. regarding a contract dated 29.11.2018. The respondent initiated proceedings under Section 9 of the Arbitration and Conciliation Act, 1996, seeking an interim injunction against the encashment of a Performance Bank Guarantee, which was granted by the Additional District Judge on 06.11.2019. Subsequently, the respondent requested the appellant to constitute an Arbitral Tribunal and raised five claims. However, the respondent later questioned the validity of the arbitral tribunal and filed Arbitration Petition No.10 of 2021 before the High Court of Orissa under Section 11(6) of the Act. The appellants contended that the application should have been filed in the High Court of Andhra Pradesh at Amaravati due to the jurisdictional issues raised under Section 42 of the Act. The Orissa High Court appointed an arbitrator despite these objections, leading to the present appeal. The Supreme Court, upon reviewing the case, found that the Orissa High Court had no jurisdiction to entertain the application as the respondent had already initiated proceedings in Vishakhapatnam. The Court quashed the High Court's order and allowed the appeal, permitting the respondent to file the application in the appropriate jurisdiction within four weeks. No costs were awarded.
Headnote
A) Arbitration Law - Jurisdiction - High Court's Authority - Arbitration and Conciliation Act, 1996, Section 11(6) - The High Court of Orissa lacked jurisdiction to entertain the application under Section 11(6) as the respondent had previously initiated proceedings under Section 9 in the Court at Vishakhapatnam, thus only the High Court of Andhra Pradesh at Amaravati had jurisdiction. The Supreme Court quashed the appointment of the arbitrator made by the Orissa High Court and allowed the appeal, directing the respondent to approach the competent court (Paras 8-9).
Issue of Consideration
Whether the High Court of Orissa had jurisdiction to entertain the application under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court allowed the appeal, quashed the appointment of the arbitrator by the High Court of Orissa, and directed the respondent to file an application under Section 11(6) before the High Court of Andhra Pradesh at Amaravati within four weeks.
Law Points
- Arbitration jurisdiction
- Section 11(6) Arbitration and Conciliation Act
- 1996
- Section 9 Arbitration and Conciliation Act
- Section 42 Arbitration and Conciliation Act
