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Jaycee Housing Pvt. Ltd. & Ors. vs Registrar (General), Orissa High Court, Cuttack & Ors.

Supreme Court19 October 2022Krishna Murari · M.R. Shah

Ratio decidendi

The rule this decision rests on

Where a state designates courts at the Civil Judge (Senior Division) level or below as Commercial Courts, those courts may exercise jurisdiction over arbitration disputes arising under the Arbitration and Conciliation Act, 1996 (Sections 9, 14, and 34), notwithstanding that Section 2(1)(e) of that Act ordinarily confines such jurisdiction to the Principal Civil Court of original jurisdiction in a district, because Section 10 of the Commercial Courts Act, 2015 specifically provides for such jurisdiction in Commercial Courts established under that Act, and a later statute enacted with full knowledge of the prior statute's provisions operates to modify the prior definition of "Court." Where the Commercial Courts Act, 2015 is later in time to the Arbitration and Conciliation Act, 1996, the legislature is presumed to have been conscious of the prior provisions and the later Act accordingly prevails; the Objects and Reasons of the 2015 Act establish that Parliament intended speedy disposal of commercial disputes, including arbitration disputes, and the designation of inferior courts as Commercial Courts accords with Section 10 of the 2015 Act and does not render Sections 3, 10, and 15 otiose or nugatory.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLEIN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTIONCIVIL APPEAL NO. 6876 OF 2022

Jaycee Housing Pvt. Ltd. & Ors. ...Appellant(S)

Versus

Registrar (General), Orissa High Court, …Respondent(S) Cuttack & Ors. With CIVIL APPEAL NO. 6878 OF 2022 With CIVIL APPEAL NO. 6877 OF 2022

JUDGMENT

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned

common judgment and order dated 12.04.2022 passed by

the High Court of Orissa at Cuttack in respective writ

petitions, by which, the Division Bench of the High Court

Signature Not Verified has dismissed the respective writ petitions in which the Digitally signed by SONIA BHASIN Date: 2022.10.19 17:18:27 IST Reason: appellants herein – original writ petitioners challenged a

1 notification dated 13.11.2020, issued by the State of

Odisha through its Principal Secretary, Law Department in

establishing the Court of the Civil Judge (Senior Division)

as Commercial Courts for the purposes of exercising

jurisdiction and powers under the Commercial Courts Act,

2015, the original writ petitioners have preferred the

present appeals.

2. In exercise of powers conferred by Section 3 and sub­

section (1) of Section 9 read with Section 10 of the Odisha

Civil Courts Act, 1984 and Section 30 of the Commercial

Courts Act, 2015 (hereinafter referred to as the Act, 2015),

the State Government on the recommendation of and after

consultation with the High Court of Orissa has established

the Courts of Civil Judge (Senior Division) as Commercial

Courts for the purposes of exercising the jurisdiction and

powers under the Act, 2015.

2.1 The original writ petitioners – appellants herein initially

filed the proceedings under Section 34 of the Arbitration

and Conciliation Act, 1996 (hereinafter referred to as the

Arbitration Act, 1996) in the Court of learned District

Judge. However, on establishment of the Commercial

2 Courts under the aforesaid notification, the said

proceedings were transferred to the Commercial Court i.e.,

the Court of Civil Judge (Senior Division) [designated as

Commercial Court]. Therefore, the appellants herein

challenged the aforesaid notification and designating the

Courts of Civil Judge (Senior Division) as Commercial

Courts under the Act, 2015 before the High Court by way

of present writ petitions. It was the case on behalf of the

appellants – original writ petitioners that constituting

and/or designating the Courts of Civil Judge (Senior

Division) as Commercial Courts and to exercise the powers

under the Commercial Courts Act would be in conflict with

the provisions of Section 2(1)(e) of the Arbitration Act,

1996. It was the case on behalf of the appellants herein

that under Section 2(1)(e) of the Arbitration Act, 1996, only

the Principal Civil Court of original jurisdiction in a district

(Court of Principal District Judge) shall be the “Court” for

the purpose of deciding the disputes under the Arbitration

Act, 1996 and in case of an arbitration it does not include

any Civil Court of a grade inferior to such Principal District

Judge. Therefore, it was the case on behalf of the

3 appellants that to confer the jurisdiction upon the Court of

Civil Judge (Senior Division) to exercise the powers under

the Commercial Courts Act including the proceedings

under the Arbitration Act, 1996 would be contrary to

Section 2(1)(e) of the Arbitration Act, 1996, which is the

Special Act. By the impugned common judgment and order

the High Court has dismissed the said writ petitions which

has given rise to the present appeals.

3. Ms. Uttara Babbar, learned counsel has appeared on

behalf of the respective appellants – original writ

petitioners and Shri Gaurav Aggarwal, learned counsel has

appeared as Amicus Curiae appointed by the Court.

3.1 Ms. Babbar, learned counsel appearing on behalf of the

appellants has vehemently submitted that there is a

conflict between Section 3 of the Act, 2015 and Section

2(1)(e) of the Arbitration Act, 1996. It is submitted that

Section 2(1)(e) of the Arbitration Act, 1996 provides that

the Principal Civil Court of original jurisdiction in a district

shall be the “Court” in the case of an arbitration other

than international commercial arbitration. It is submitted

that Section 2(1)(e) of the Arbitration Act, 1996 specifically

4 provides that it does not include any Civil Court of a grade

inferior to such Principal Civil Court. It is submitted that

therefore, under Section 2(1)(e)(i) of the Arbitration Act,

1996, all courts inferior to Principal Civil Court are

excluded. It is submitted that wherever an application has

to lie to a “court” (under the Commercial Courts Act), it

must lie to the Principal Civil Court and the jurisdiction of

all inferior courts is excluded.

3.2 It is submitted that when in exercise of the powers under

Section 3 of the Act, 2015, jurisdiction to hear applications

under Sections 9, 14, 34 of the Arbitration Act, 1996, is

conferred on commercial courts which are subordinate to

the Principal Civil Court of original jurisdiction in the

district, there is a clear conflict with the provisions of

Section 2(1)(e) of the Arbitration Act, 1996.

3.3 It is further submitted by Ms. Babbar, learned counsel

appearing on behalf of the appellants that the “Court”

under Section 2(1)(e) of the Arbitration Act, 1996 is the

superior most court in the district and as such legislature

intended to minimize the supervisory role of the courts in

the arbitral process. Reliance is placed on the decisions of

5 this Court in the cases of State of Maharashtra and Anr.

Vs. Atlanata Ltd.; (2014) 11 SCC 619 and State of West

Bengal and Ors. Vs. Associated Contractors; (2015) 1

SCC 32.

3.4 It is further submitted by Ms. Babbar, learned counsel

appearing on behalf of the appellants that the Arbitration

and Conciliation Act, being a special statute vis­à­vis the

Commercial Courts Act, shall prevail over the Commercial

Courts Act in the case of any conflict as held by this Court

in the cases of Fuerst Day Lawson Ltd. Vs. Jindal

Exports Ltd.; (2011) 8 SCC 333 and Kandla Export

Corporation and Anr. Vs. OCI Corporation and Anr.;

(2018) 14 SCC 715, the Arbitration and Conciliation Act

shall prevail.

3.5 It is further submitted that the High Court has proceeded

on an erroneous premise that the Arbitration and

Conciliation Act must yield to the Commercial Courts Act

as both are special statutes, and the Commercial Courts

Act is the later statute. It is submitted that aforesaid is

contrary to the aforesaid two decisions of this Court. It is

6 submitted that as observed and held by this Court in the

case of Fuerst Day Lawson Ltd. (supra) the Arbitration

Act is a self­contained code and exhaustive and therefore,

the same shall prevail over the Commercial Courts Act

being a Special Act. It is further submitted that the

decision of this Court in the case of Kandla Export

Corporation (supra) has been subsequently approved by a

bench of three Hon’ble Judges in the case of BGS SGS

SOMA JV Vs. NHPC Ltd.; (2020) 4 SCC 234. It is

submitted that in the said decision, this Court has

categorically held that the Arbitration Act is a complete

code and a Special Act which excludes the general law,

including the Commercial Courts Act. It is submitted that

therefore the view taken by the High Court in the common

impugned judgment and order is just contrary to the

decision of this Court in the case of Kandla Exports

Corporation (supra) and another decision referred

hereinabove.

3.6 It is further submitted by Ms. Babbar, learned counsel

appearing on behalf of the appellants that the objective of

7 the Arbitration Act is to ensure speedy disposal of cases

which minimal court’s interference. If the Civil Judge

(Senior Division) is designated as Commercial Court, then

the litigant would be provided another challenge to the

High Court under Article 227 even after disposal of the

appeal by the District Judge, which shall defeat the

objective of speedy disposal. Reliance is placed on para 27

of the decision of this Court in the case of Kandla Exports

Corporation (supra).

3.7 Ms. Babbar, learned counsel appearing on behalf of the

appellants has pointed that there is a conflict in the views

of various High Courts. It is submitted that the Gujarat

High Court and the Madhya Pradesh High Court have

taken the view that the Arbitration Act will prevail over the

Commercial Courts Act and on other hand the Bombay

High Court, Rajasthan High Court and Orissa High Court

have taken a contrary view.

3.8 Making the above submissions and relying upon the above

decisions, it is prayed to declare and hold that the

notification issued by the State of Odisha conferring the

powers upon the Commercial Court – Court of Civil Judge 8 (Senior Division) to exercise the powers under the

Commercial Courts Act in respect of arbitration disputes

as illegal, bad in law and consequently to quash and set

aside the impugned common judgment and order passed

by the High Court.

4. Shri Gaurav Aggarwal, learned counsel and Amicus Curiae

has taken us to the object and purpose of enactment of

Commercial Courts Act and establishment of the

Commercial Courts, Commercial Division and Commercial

Appellate Division of the High Court. It is submitted that

the Commercial Courts Act and the establishment of

Commercial Courts are with a view to facilitate early

disposal of the high value disputes/commercial disputes.

It is submitted that with a view to achieving the object of

speedy disposal of the commercial disputes, the legislature

has enacted the Commercial Courts Act, 2015. It is

submitted that under Section 3 of the Commercial Courts

Act, 2015, a commercial Court can be set up and a

commercial Appellate Court can be set up under Section

3A of the Commercial Courts Act, 2015. It is submitted

that a dispute relating to arbitration is a commercial

9 dispute under Section 2(c) of the Commercial Courts Act,

2015. It is submitted that Section 10 of the Commercial

Courts Act, 2015 is a special provision in respect of

arbitration matters. It is submitted that as per sub­section

(3) of Section 10, if the arbitration is other than an

international commercial arbitration, all applications or

appeals arising out of such arbitration under the

provisions of the Arbitration Act that would ordinarily lie

before any principal civil court of original jurisdiction in a

district, shall be filed in, and heard and disposed of by the

Commercial Court exercising territorial jurisdiction over

such arbitration where such Commercial Court has been

constituted. It is submitted that the Commercial Courts

Act – being a later Act and has been enacted for a specific

purpose for speedy disposal of the commercial disputes,

the same shall prevail. It is submitted that when the

legislature in its wisdom in a later enactment has

specifically provided as per sub­section (3) of Section 10 of

the Commercial Courts Act, 2015 that all

applications/appeals arising out of the Arbitration Act

other than the international commercial arbitration would

10 be heard and disposed of by the Commercial Court, the

same shall prevail. It is submitted that if the submissions

made on behalf of the appellants is accepted in that case Section 10 would become otiose or redundant and/or

nugatory. It is submitted that therefore, it is requested not

to have the interpretation which shall result any provision

of the Act nugatory and/or otiose.

4.1 Now so far as the reliance placed upon the decision of this

Court in the case of Kandla Export Corporation (supra) is

concerned, it is vehemently submitted that the said

decision does not imply that all provisions of the

Arbitration Act would prevail over the Commercial Courts

in case of any conflict and inconsistency.

4.2 It is submitted that similarly the decision of this Court in

the case of BGS SGS SOMA JV (supra) shall not be

applicable to the facts of the case on hand, it is submitted

that in the said decision it is held that Section 13(1) of the

Commercial Courts Act does not provide for independent

right of appeal, but merely provides forum of filing appeal.

4.3 Making the above submissions it is prayed to dismiss the

present appeals and hold that in the present case the 11 notification issued by the State Government conferring

powers upon the Commercial Court – Court of Civil Judge

(Senior Division) to exercise the powers under the

Commercial Courts Act is neither illegal nor bad in law.

5. We have heard Ms. Uttara Babbar, learned counsel

appearing for the appellants and Shri Gaurav Aggarwal,

learned Amicus Curiae.

6. The question of law arising for consideration in the present

appeal is, whether in exercise of powers under Section 3 of

the Commercial Courts Act, 2015, the State Government

can confer jurisdiction to hear applications under Sections

9, 14 and 34 of the Arbitration and Conciliation Act, 1996,

upon Commercial Courts which are subordinate to the

rank of the Principal Civil Judge in the District, contrary to

the provisions of Section 2(1)(e) of the Arbitration Act?

7. While considering the aforesaid question of law, relevant

provisions of the Arbitration Act, 1996 and the Commercial

Courts Act, 2015 are required to be referred to and

considered, namely, Section 2(1)(e) of the Arbitration Act

and Sections 3, 10, 15 & 21 of the Commercial Courts Act,

2015, which read as under:

12

“Section 2(1)(e) of the Arbitration Act, 1996:

(e) “Court” means –

(i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject­matter of the arbitration if the same had been the subject­matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes;

(ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject­matter of the arbitration if the same had been the subject­matter of a suit, and in other cases, a High Court having jurisdiction to hear appears from decrees of courts subordinate to that High Court”

Sections 3, 10, 15 & 21 of the Commercial Courts Act, 2015:

3. Constitution of Commercial Courts ­ (1) The State Government, may after consultation with the concerned High Court, by notification, constitute such number of Commercial Courts at District level, as it may deem necessary for the purpose of exercising the jurisdiction and powers conferred on those courts under this Act:

Provided that with respect to the High Courts having ordinary original civil jurisdiction, the State Government may, after consultation with the concerned High Court, by notification, constitute Commercial Courts at the District Judge level:

Provided further that with respect to a territory over which the High Courts have ordinary original civil jurisdiction, the State Government may, by notification, specify such pecuniary value which shall not be less than three lakh rupees and not more than the pecuniary jurisdiction exercisable by the District Courts, as it may consider necessary.]

(1­A) Notwithstanding anything contained in this Act, the State Government may, after consultation with the concerned High Court, by notification, specify such pecuniary value

13 which shall not be less than three lakh rupees or such higher value, for whole or part of the State, as it may consider necessary.]

(2) The State Government shall, after consultation, with the concerned High Court specify, by notification, the local limits of the area to which the jurisdiction of a Commercial Court shall extend and may, from time to time, increase, reduce or alter such limits.

(3) The [State Government may], with the concurrence of the Chief Justice of the High Court appoint one or more persons having experience in dealing with commercial disputes to be the Judge or Judges, of a [Commercial Court either at the level of District Judge or a court below the level of a District Judge].

10. Jurisdiction in respect of arbitration matters ­ Where the subject­matter of an arbitration is a commercial dispute of a specified value and—

(1) If such arbitration is an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed in a High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court.

(2) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed on the original side of the High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court.

(3) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be filed in, and heard and disposed of by the Commercial Court exercising territorial

14 jurisdiction over such arbitration where such Commercial Court has been constituted.

15. Transfer of Pending Cases— (1) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to the Commercial Division.

(2) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a specified value pending in any civil court in any district or area in respect of which a Commercial Court has been constituted, shall be transferred to such Commercial Court:

Provided that no suit or application where the final judgment has been reserved by the court prior to the constitution of the Commercial Division or the Commercial Court shall be transferred either under sub­section (1) or sub­section (2).

(3) Where any suit or application, including an application under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of specified value shall stand transferred to the Commercial Division or Commercial Court under sub­section (1) or sub­section (2), the provisions of this Act shall apply to those procedures that were not complete at the time of transfer.

(4) The Commercial Division or Commercial Court, as the case may be, may hold case management hearings in respect of such transferred suit or application in order to prescribe new timelines or issue such further directions as may be necessary for a speedy and efficacious disposal of such suit or application in accordance [with Order XV­A] of the Code of Civil Procedure, 1908 (5 of 1908):

Provided that the proviso to sub­rule (1) of Rule 1 of Order V of the Code of Civil Procedure, 1908 (5 of 1908) shall not apply to such transferred suit or application and the court may, in its discretion, prescribe a new time period within which the written statement shall be filed.

15 (5) In the event that such suit or application is not transferred in the manner specified in sub­section (1), sub­section (2) or sub­section (3), the Commercial Appellate Division of the High Court may, on the application of any of the parties to the suit, withdraw such suit or application from the court before which it is pending and transfer the same for trial or disposal to the Commercial Division or Commercial Court, as the case may be, having territorial jurisdiction over such suit, and such order of transfer shall be final and binding.

21 Act to have overriding effect —Save as otherwise provided, the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law for the time being in force other than this Act.”

8. It is the case on behalf of the appellants, relying upon

Section 2(1)(e) of the Act, 1996 that in case of arbitration

other than the international commercial arbitration, the

principal Civil Court of original jurisdiction in a district

only have the jurisdiction to decide the questions forming

the subject­matter of the arbitration, but does not include

any Civil Court of a grade inferior to such principal Civil

Court, or any Court of Small Causes. Therefore, it is the

case on behalf of the appellants that therefore conferring

the jurisdiction upon the Court of learned Civil Judge

(Senior Division) as Commercial Court to hear applications

under Section 9, 14 and 34 of the Act, 1996 shall be

directly in conflict with Section 2(1)(e) of the Act, 1996 and

16 therefore the notification of the State Government

conferring such powers upon the Court of learned Civil

Judge (Senior Division) which is subordinate to the rank of

Principal Civil Judge in a district shall be bad in law.

9. While considering the aforesaid issue/question, first of all,

one has to consider the object and purpose of

establishment of the Commercial Courts and the

enactment of the Commercial Courts Act, 2015.

9.1 In the year 2003, the Law Commission of India suo moto

took up the issue of constitution of Commercial Divisions

in the High Courts with a view to facilitate fast disposal of

high value commercial disputes. In its 188 th Report, the

Law Commission, after carrying out in­depth study of

Commercial Courts in United Kingdom, USA, Singapore

etc. recommended setting up of Commercial Division in

each of the High Courts to expedite commercial cases of

high pecuniary value.

9.2 On the basis of the above recommendations of the Law

Commission, a Bill was introduced in Lok Sabha on

16.12.2009 and passed on 18.12.2009 for setting up

commercial divisions in the High Courts. The Bill was

17 referred to a Select Committee which suggested certain

amendments to the said Bill. The Bill was redrafted and

placed before the Rajya Sabha for its consideration.

However, the same came to be withdrawn by the

Government and thereafter the matter was again referred

to the Law Commission for its report. The Law

Commission in its 253rd Report submitted in January,

2015 suggested a new approach for expediting commercial

disputes and therefore proposed a new Bill. The Law

Commission made the following recommendations qua

arbitration matters involving the commercial disputes:

“3.24.4 Second, in the case of domestic arbitrations concerning a commercial dispute of more than Rupees One Crore, applications or appeals may lie either to the High Court or a Civil Court (not being a High Court) depending upon the pecuniary jurisdiction. It is recommended that all applications or appeals arising out of such arbitrations under the A& C Act, that have been filed on the original side of the High Court shall be heard by the Commercial Division of the High Court where such Commercial Division is constituted in the High Court. However, in the absence of a Commercial Division being constituted, the regular Bench of the High Court will hear such applications or appeals arising out of domestic arbitration. If the application or appeal in such domestic arbitration is not within the jurisdiction of the High Court and would ordinarily lie before a Civil Court (not being a High Court) and there is a Commercial Court exercising territorial jurisdiction in respect of such arbitration, then such application or appeal shall be filed in and heard by such Commercial Court.”

18 Accordingly, Commercial Courts, Commercial Division

and Commercial Appellate Division of High Courts Bill, 2015

was introduced in Rajya Sabha on April 29, 2015 which was

referred to Departmental Related Parliamentary Standing

Committee on Personnel, Public Grievances, Law and

Justice. While the matter was pending before the

Parliamentary Committee, an Ordinance was promulgated

by His Excellency the President of India on 23.10.2015,

namely, Commercial Courts, Commercial Division and

Commercial Appellate Division of High Courts Ordinance,

2015.

That thereafter, the Commercial Courts, Commercial

Division and Commercial Appellate Division of High Courts

Act, 2015 was passed by the Parliament, which has been

subsequently re­named as Commercial Courts Act, 2015.

The statements of Objects and Reasons of the said Act, inter

alia, provides as under:

“The proposal to provide for speedy disposal of high value commercial disputes has been under consideration of the Government for quite some time. The high value commercial disputes involve complex facts and question of law. Therefore, there is a need to provide for an independent mechanism for their early resolution. Early resolution of commercial disputes

19 shall create a positive image to the investor world about the independent and responsive Indian legal system.”

That thereafter the Commercial Courts Act, 2015 has

been amended in the year 2018 which has come into force

with effect from 03.05.2018, by which Sections 3(1A) & 3A

have been inserted enabling the State Governments to

designate such number of commercial Appellate Courts at

District level to exercise appellate jurisdiction over the

commercial courts below the District Judge level. Thus, a

commercial Court can be set up under Section 3 of the Act,

2015 and a commercial appellate Court can be set up

under Section 3A of the Act, 2015.

10. Thus, the Objects and Reasons of Commercial Courts Act,

2015 is to provide for speedy disposal of the commercial

disputes which includes the arbitration proceedings. To

achieve the said Objects, the legislature in its wisdom has

specifically conferred the jurisdiction in respect of

arbitration matters as per Section 10 of the Act, 2015. At

this stage, it is required to be noted that the Act, 2015 is

the Act later in time and therefore when the Act, 2015 has

20 been enacted, more particularly Sections 3 & 10, there was

already a provision contained in Section 2(1)(e) of the Act,

1996. As per settled position of law, it is to be presumed

that while enacting the subsequent law, the legislature is

conscious of the provisions of the Act prior in time and

therefore the later Act shall prevail. It is also required to

be noted that even as per Section 15 of the Act, 2015, all

suits and applications including applications under the

Act, 1996, relating to a commercial dispute of specified

value shall have to be transferred to the Commercial

Court. Even as per Section 21 of the Act, 2015, Act, 2015

shall have overriding effect. It provides that save as

otherwise provided, the provisions of this Act shall have

effect, notwithstanding anything inconsistent therewith

contained in any other law for the time being in force.

11. Therefore, considering the afore­stated provisions of the

Act, 2015 and the Objects and Reasons for which the Act,

2015 has been enacted and the Commercial Courts,

Commercial Division and Commercial Appellate Division in

the High Courts are established for speedy disposal of the

commercial disputes including the arbitration disputes,

21 Sections 3 & 10 of the Act, 2015 shall prevail and all

applications or appeals arising out of arbitration under the

provisions of Act, 1996, other than international

commercial arbitration, shall be filed in and heard and

disposed of by the Commercial Courts, exercising the

territorial jurisdiction over such arbitration where such

commercial courts have been constituted. If the

submission on behalf of the appellants that all

applications/appeals arising out of arbitration under the

provisions of Act, 1996, other than the international

commercial arbitration, shall lie before the principal civil

Court of a district, in that case, not only the Objects and

Reasons of enactment of Act, 2015 and establishment of

commercial courts shall be frustrated, even Sections 3, 10

& 15 shall become otiose and nugatory. If the submission

on behalf of the appellants is accepted, in that case,

though with respect to other commercial disputes, the

applications or appeals shall lie before the commercial

courts established and constituted under Section 3 of Act,

2015, with respect to arbitration proceedings, the

applications or appeals shall lie before the principal civil

22 Court of a district. There cannot be two fora with respect

to different commercial disputes.

Under the circumstances, notification issued by the

State of Odisha issued in consultation with the High Court

of Orissa to confer jurisdiction upon the court of learned

Civil Judge (Senior Division) designated as Commercial

Court to decide the applications or appeals arising out of

arbitration under the provisions of Act, 1996 cannot be

said to be illegal and bad in law. On the contrary, the

same can be said to be absolutely in consonance with

Sections 3 & 10 of Act, 2015. We are in complete

agreement with the view taken by the High Court holding

so.

12. In view of the above and for the reasons stated above, all

these appeals fail and the same deserve to be dismissed

and are accordingly dismissed. However, in the facts and

circumstances of the case, there shall be no order as to

costs.

23

13. Before parting with the case, we appreciate the assistance

rendered by Shri Gaurav Aggarwal, learned counsel as

Amicus Curiae in the matter.

………………………………….J. [M.R. SHAH]

NEW DELHI; ………………………………….J. OCTOBER 19, 2022 [KRISHNA MURARI]

24

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