Srei Equipment Finance Limited vs Seirra Infraventure Private Limited
- CitationAIRONLINE 2020 CAL 465
Ratio decidendi
The rule this decision rests on
Where an application under section 9 of the Arbitration and Conciliation Act, 1996 is filed in a domestic arbitration, territorial jurisdiction of the court is established if: (1) part of the cause of action has arisen within the jurisdiction of the court; or (2) the parties have agreed to an exclusive jurisdiction clause and/or a seat of arbitration pointing to that court; provided in all cases that the court otherwise possesses jurisdiction under section 2(1)(e)(i) of the Act read with sections 15-20 of the Code of Civil Procedure, 1908. When the respondent challenges jurisdiction by disputing that the cause of action arose within the court's territory, the respondent must discharge the burden of proof by adducing evidence that dislodges the petitioner's factual averments and documentary evidence; a bare denial is insufficient. In assessing jurisdiction at the stage of an application under section 9, the court proceeds on a prima facie basis by conjoining the averments, documents, and the strength of the rebuttal offered by the party challenging jurisdiction, without leading evidence as to the factual matrix.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
For the Petitioner : Mr. Swatarup Banerjee, Adv.
Mr. Dripto Majumdar, Adv.
Mr. Saubhik Chowdhury, Adv. Mr. Jishnujit Roy, Adv.
For the Respondent : Mr. Rohit Das, Adv. Mr. Aniruddha Bhattacharya, Adv.
Last Heard on : 25.08.2020.
Delivered on : 07.10.2020.
Moushumi Bhattacharya, J.
1. This is an application under section 9 of The Arbitration and
Conciliation Act, 1996, in which the petitioner/finance company has sought
an injunction restraining the respondent/hirer from dealing with the assets
leased by the petitioner to the respondent under a Master Lease Agreement 2
entered into between the parties on 15th March, 2018. The petitioner has
alleged outstanding rental dues as on the date of termination of the
Agreement and has sought for appointment of a Receiver to take possession
of the assets together with an order directing the respondent to furnish
security to the extent of Rs. 75,19,388/-.
2. The respondent has raised a point of maintainability of the application
on the ground that this Court does not have territorial jurisdiction to
entertain the application as would be evident from the pleadings and
documents as also the relevant provisions of The Arbitration and
Conciliation Act, 1996.
3. According to Mr. Rohit Das, learned counsel appearing for the
respondent, no part of the cause of action has arisen within the ordinary
original civil jurisdiction of this Court as the entire transaction has taken
place at the petitioner's Head Office in Sector V, Salt Lake and at the
respondent's registered office in Sector II, Salt Lake. Counsel relies on the
arbitration clause and the exclusive jurisdiction clause in the contract which
refers to the greater city of Kolkata and does not refer to the High Court at
Calcutta. Counsel relies on Golden Edge Engineering Private Limited Vs.
Bharat Heavy Electricals Limited in A.P. No.191 of 2020; Debdas Routh Vs.
Hinduja Leyland Finance Limited reported in AIR 2018 Cal 322 and M/S
Sunil Hi-Tech Engineers Ltd. Vs. M/S Bharat Heavy Electricals Ltd. in G.A.
No.3647 of 2016 with AP No. 966 of 2016. Counsel submits that even
otherwise the parties could not have chosen the seat of arbitration to be that 3
part of the city which is within the jurisdiction of this Court when no part of
the cause of action has arisen within the territorial jurisdiction of this Court. Counsel relies on Hakam Singh Vs. Gammon (India) Ltd. reported in AIR
1971 SC 740, A.B.C. Laminart Pvt. Ltd. Vs. A.P. Agencies, Salem reported in
AIR 1989 SC 1239, Khazana Projects & Industries Pvt. Ltd. Vs. Indian Oil
Corporation Ltd. in F.M.A. No.2748 of 2016 for the proposition that parties
cannot confer jurisdiction on a court where there is an inherent lack of
jurisdiction.
4. Mr Swatarup Banerjee, learned counsel for the petitioner, places
emphasis on the conduct of the respondent in failing to pay the lease rentals
which caused the petitioner to approach this Court. Counsel submits that
the averments in the petition are clearly to the effect that the cause of action
has arisen within the jurisdiction of this Court and that the jurisdiction
clause in the agreement as well as the seat of arbitration in the relevant
clause also clothed this Court with the jurisdiction to deal with the dispute.
Counsel relies on Swastik Gases Private Limited Vs. Indian Oil Corporation
Limited reported in (2013) 9 SCC 32 to submit that if parties have consented
to a particular court and if that court otherwise has jurisdiction then that
court would be entitled to adjudicate the disputes between the parties. Bharat Aluminium Company Vs. Kaiser Aluminium Technical Services Inc.
reported in (2012) 9 SCC 552 is cited for the proposition that if two courts
have jurisdiction, the court where the arbitration takes place can decide the
dispute. Indus Mobile is placed to submit that where the parties consented 4
to accept a particular situs for arbitration, that situs would confer
jurisdiction on the court under section 2(1)(e)(i) of The Arbitration and
Conciliation (Amendment) Act, 2015. It is submitted that once the parties
have chosen 'Kolkata' as the situs for arbitration, this Court being the
highest civil court having ordinary original civil jurisdiction in the District of
Kolkata under section 2(1)(e)(i) of the 2015 Act is the only court which is
competent to receive, try and entertain the disputes between the parties. BGS SGS SOMA JV Vs. NHPC Limited reported in (2020) 4 SCC 234 and
Hindustan Construction Company Limited Vs. NHPC Limited and Anr.
reported in (2020) 4 SCC 310 are shown to urge that the seat of arbitration
would determine the jurisdiction of the court which can receive, try and
entertain proceedings under the Amendment Act of 2015.
5. I have considered the arguments of counsel. To put the point of
adjudication in perspective, the petitioner urges that this Court has
jurisdiction to grant the reliefs in this application under section 9 of the
1996 Act while the respondent says that this Court does not, as no part of
the cause of action related to the dispute arose within the jurisdiction of this
Court.
6. The preliminary point taken by way of objection to the maintainability
of the application falls for consideration in this decision.
7. It should first be clarified that although an application under section 9
of the Act is in the nature of interim relief where the substantive relief 5
arising out of the dispute is considered by the Arbitrator, section 2(1)(e)(i) of
the Amendment Act of 2015 - defining "Court" - brings within its fold the
proper court in which such application may be filed. The language used in
section 9 is "Interim measures, etc., by Court" and in 2(1)(e)(i) the court
'having jurisdiction' hence the issue of territorial jurisdiction of a court
becomes relevant. The extent of significance would be evident from the
relevant part of the section which is set out below.
"Section 2(1)(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 subject-matter of the arbitration if the same had been the subject-matter 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;"
8. In order to see whether this Court has jurisdiction to entertain the
present application, the probative value of pleadings and corroborating
materials relied on by counsel should be weighed in context.
9. The contentions of the petitioner : says that this Court has jurisdiction :
i. The respondent approached the petitioner at its corporate office at 6A
Kiran Shankar Roy Road, Kolkata 1, within the jurisdiction of this
Court for taking on lease of various assets for use in the
respondent's business.
6
ii. The parties entered into a Master Lease Agreement on 15th March,
2018 at the petitioner's corporate office at 6A Kiran Shankar Roy
Road, Kolkata 1, within the jurisdiction of this Court. The
Agreement has been annexed to the petition.
iii. Pursuant to the above agreement, three Rental Schedules were
executed between the parties at the petitioner's corporate office at
6A Kiran Shankar Roy Road, Kolkata 1 within the jurisdiction of
this Court. The Schedules have been annexed to the petition.
iv. The Master Lease Agreement was terminated by a Notice dated 28th
February, 2020 issued by the advocate of the petitioner from 5,
Kiran Shankar Roy Road, Kolkata 1, within the jurisdiction of this
Court. The Notice of termination has been annexed to the petition.
v. All the records in connection with the transaction are available at the
petitioner's corporate office at 6A Kiran Shankar Roy Road, Kolkata
1, within the jurisdiction of this Court.
vi. Besides the pleadings, the petitioner has relied on clause '18 k' of the
Agreement by which the parties agreed to submit to the exclusive
jurisdiction of the Courts in Kolkata.
vii. Reliance is also placed on clause '18n' which states that the venue of
Arbitration will be Kolkata.
[
10. Do the documents annexed corroborate the stand of the petitioner? 7
a. The Master Lease Agreement dated 15th March, 2018 mentions the
registered office of the petitioner at 86 Topsia Road (South) Kolkata 46
together with its corporate office at 6A Kiran Shankar Roy Road,
Kolkata 1, in the Recital. The last page of the Agreement shows that
the parties have 'signed at Kolkata on...' but does not specify the exact
location in Kolkata where the agreement was executed.
b. The Schedule to the Agreement containing the rental schedule also
shows that the parties signed 'at Kolkata' without specifying the exact
location.
c. Even though the Notice of termination of the Agreement was issued
from the office of the petitioner's lawyer at 5 Kiran Shankar Roy Road,
Kolkata 1, the material fact would be where such Notice was received
by the addressee. Notably, the registered office of the respondent
mentioned in the Notice is Sector II Salt Lake City, Kolkata 91. Hence,
this document cannot assist the petitioner for deciding the point of
jurisdiction.
11. Contentions of the respondent : says that this Court does not have
jurisdiction.
i. The entire transaction between the parties took place between the
offices of the petitioner and the respondent located at Sector V and
Sector II, Salt Lake, respectively.
8
ii. The registered office of the respondent is at Topsia, outside the
jurisdiction of this Court.
iii. All correspondence was exchanged between the offices of the parties
located in Salt Lake.
iv. There has been no physical visit or transaction by any employee or
officer of the respondent at the Kiran Shankar Roy Road office of
the petitioner.
v. Clause 18k, being the exclusive jurisdiction clause, refers to Courts
in the City of Kolkata and does not specify the Calcutta High Court.
vi. Clause 18n specifying that the venue of arbitration will be Kolkata
cannot confer jurisdiction on this Court to decide the present
dispute.
12. Do the documents relied on corroborate the contentions of the
respondent?
a. The letters issued by the petitioner on 30th April, 2019 with regard to
the revised repayment schedule mention the Head Office of the
petitioner as Sector V, Salt Lake City and the respondent's address as
Udaipur, Surguja, Chattisgarh.
b. A series of correspondence between the respondent and the petitioner
from 9th August 2017 to 13th March 2018 including emails
exchanged with a third-party vendor related to the transaction based 9
in Pune. An e-mail of 10th January, 2018 shows the beneficiary Bank
branch is located at Raghunathpur, Kolkata.
c. All the emails and letters exchanged mention the address of the
petitioner as Sector V, Salt Lake City and not the office at Kiran
Shankar Roy Road.
13. With reference to the above documents, although the address of the
petitioner has been mentioned as the Salt Lake address in all the
communications, the documents cannot be taken as unimpeachable
evidence of the transactions having taken place wholly outside the
jurisdiction of this Court or that not even a single transaction was carried
out at or from the petitioner's Kiran Shankar Roy office. Further, although
the respondent has denied the averment of the Agreement having been
signed at the petitioner's office at Kiran Shankar Roy Road, there is no
supporting document to specifically corroborate the denial. The Agreement
states that one of the petitioner's offices are located at Kiran Shankar Roy
Road and the parties are shown to have signed the Agreement at Kolkata.
The document is buttressed by the pleading at paragraph 3 of the
application that the Master Lease Agreement was executed at the corporate
office of the petitioner at 6A Kiran Shankar Roy Road. To rebut the
presumption that the Agreement has been signed at the petitioner's office
within the jurisdiction of this Court, the respondent would have to bring
evidence in the form of contemporaneous documents/correspondence to
assert that the parties executed the Agreement at Sector V/Sector II, Salt 10
Lake or at a place outside the jurisdiction of this Court. In other words, a
denial simpliciter of the statement that the agreement was signed within the
jurisdiction of this Court is not enough, the respondent has to adduce
something more to upend the presumption in favour of the petitioner in
totality.
14. The 'exclusive jurisdiction' and 'venue' arguments are being separately
dealt with.
15. Clause 18k : The exclusive jurisdiction clause is set out below:
18.k) This agreement shall be governed by and construed in accordance with laws of India. Parties agree to submit to the exclusive jurisdiction of the Courts in the City of Kolkata."
The respondent's objection that the clause is vague and lacks
necessary particulars to only mean the Calcutta High Court to the exclusion
of all other courts in the city of Kolkata merits consideration. It is correct
that many of such clauses suffer from a generalised brush-stroke to broadly
include any court within a given territorial boundary. The vagueness
particularly comes to the fore when there are multiple courts in a city like
Kolkata and particularly after The Commercial Courts Act, 2015, under
which at least 2 courts in 'Kolkata' are contemplated and a total of 4 courts
within the extended territorial boundaries of the city. As much as this Court
finds such generalised clauses to be misleading and insufficient for the
purposes of designating a court with the jurisdiction, an application under
section 9 of the 1996 Act must be placed in context.
11
16. Under section 6 of the Commercial Courts Act, a Commercial Court
shall have jurisdiction to try all suits and applications relating to a
commercial dispute of a specified value arising out of the entire territory of
the State over which it has territorial jurisdiction. Under section 7, the
Commercial Division of a High Court shall have similar jurisdiction over
commercial disputes of a specified value filed in the High Court having
ordinary original civil jurisdiction. Under section 10(2), the Commercial
Division of a High Court shall hear and dispose of applications and appeals
arising out of arbitrations other than international commercial arbitrations
and filed in the original side of the High Court provided the dispute is a
commercial dispute of a specified value. A Notification dated 16th January,
2019 set up 4 commercial courts including 2 such courts in greater Kolkata;
namely at Alipore and Rajarhat. By a subsequent Notification dated 20th
March, 2020, the pecuniary jurisdiction in terms of the value of the
commercial disputes was specified. Commercial Courts within the territorial
jurisdiction of the City Civil Court at Calcutta would have exclusive
jurisdiction of commercial disputes with a specified value from 3 lakhs to 10
lakhs and would have concurrent jurisdiction with the Commercial Division
of the High Court at Calcutta for disputes in excess of 10 lakhs to 1 crore
while the Commercial Division of the High Court would have a pecuniary
jurisdiction exceeding 10 lakhs. The petitioner has stated in paragraph 44 of
the application that the valuation of the subject matter of the reference
exceeds Rs 10 lakhs. Hence, if the Commercial Division of this Court has
concurrent jurisdiction with the Commercial Court within the jurisdiction of 12
the City Civil Court in terms of the specified value, then the petitioner must
be given the option of approaching either of these two courts. The petitioner
has chosen to come before the High Court at Calcutta.
17. Clause 18n: Kolkata was designated as the venue of arbitration. The
relevant part of the clause is set out below:
"18. n) .......
It is made clear that the venue of Arbitration proceedings will be Kolkata and no objection shall be entertained from any parties in this regard.
The Award of the arbitrator shall be final, conclusive and binding on all the parties."
The petitioner's argument is that since the parties have designated
'Kolkata' as the chosen situs for arbitration, this court is the highest Civil
Court having the requisite jurisdiction under section 2(1)(e)(i) of the
Amendment Act, 2015, and would hence be the only competent court to
receive and entertain the present application. Notably, clause 18n fixes
Kolkata as the 'venue' of the arbitration proceedings as opposed to 'seat'.
18. Although, for the purposes of the present matter, the factum of the
cause of action having arisen within the jurisdiction of this Court marks the
territoriality issue in favour of the petitioner and the 'seat' of arbitration
becomes secondary and alternative to the first argument, this Court wishes
to dwell briefly on the 'seat' point. The Supreme Court has explained the
difference between venue and seat in several decisions where the former was
seen as a place which could be fixed for holding the meetings of the 13
arbitration according to the convenience of the parties and could hence be
changed as and when the parties deemed it fit. The expression 'seat'
however had a connection with the local law which would be the governing
law for the conduct of the arbitration proceedings. Hence, 'seat' remains
rooted to the place agreed upon by the parties in the clause pertaining to
arbitration since it has a bearing on the applicable curial law governing the
conduct of the arbitration proceedings. The interplay between seat and
venue was reiterated in BGS SGS SOMA where the Supreme Court held that
in cases where the parties had not defined the seat, the venue agreed upon
could be construed as the seat. It must be mentioned however that the
concept of seat assumes significance where the parties have consented to a
seat in a country which is different to the country where an application in
relation to the arbitration agreement or the award is made. The issue which
naturally falls for adjudication in such cases is identifying the proper court
for taking up the challenge to the agreement or the award. In paragraph 48
of BGS SGS SOMA, the Supreme Court trained its lens on cases where there
was a fight (for space, as it were) between Part I and Part II of the Act over
claims on the court which would supervise the arbitration proceedings. In
the cases discussed in that decision, the question was whether the chosen
seat of the arbitration could be by-passed in deciding the law governing the
arbitral proceedings. Relying on passages from Enercon (India) v Enercon
GmbH; (2014) 5 SCC 1 and Shashoua v Sharma; (2009) 2 Lloyd's Law Report
376 and C v D 2008 Bus LR 843, the Supreme Court held that once the seat
of arbitration is chosen, it would amount to an exclusive jurisdiction clause 14
insofar as the courts at that seat are concerned. The illustration given in
paragraph 49 of BGS SGS SOMA shows that the Supreme Court was
considering a case where the cause of action had arisen in multiple courts
including the court connected to the seat chosen by the parties and where
the intention of the parties would be defeated if the remotest court was
allowed to assume jurisdiction in the matter. In the cases cited including
Videocon Industries Limited vs. Union of India reported in (2011) 6 SCC 161,
the provisions of Part I of the Act were pitted against those of Part II of the
1996 Act; in other words the question was which was the competent court
to receive applications in connection with the arbitration agreement. The
underlying principle was more than party autonomy, it was to prevent
parties aggrieved by different parts of an award rushing to two different
courts or alternatively, a satisfied party approaching Court A for enforcing
an award while the aggrieved party goes to Court B for setting aside of the
award.
19. It should also be pointed out that the choice of the court where any
application under Part I of the 1996 Act may be filed is governed by section
2(1)(e)(i) in conjunction with section 42 of the Act. Section 2(1)(e)(i) lays
down the tier (in the hierarchy) of the court taken with the territorial and the
jurisdiction parameters for making it competent to decide the questions
raised in the application. Section 42, on the other hand, is a safeguard
against multiple applications involving the same subject-matter being taken
to different courts after a party to an arbitration agreement has approached 15
a particular court having the requisite jurisdiction. The first court
approached by a party for an application under Part I thus becomes the
exclusive forum for receiving subsequent applications in relation to disputes
arising out of the arbitration agreement.
20. The decisions shown on behalf of the parties should be placed in the
background of the territorial issue urged. First, the decisions cited by
counsel for the respondent who asserts that the present application must be
filed elsewhere. There is no dispute in the present case that there is a valid
arbitration agreement between the parties or that the dispute is covered by
the said agreement. In Golden Edge Engg, the Learned Single Judge came to
the specific finding that the respondent did not have any office at 57 Park
Street, Kolkata for conferring jurisdiction on this Court to hear the
application under section 9 of the Act. In the appeal, the Division Bench
proceeded on the stand of the appellant (petitioner before the Single Bench)
that this Court did not have territorial jurisdiction to entertain the
application. The petition filed under section 9 in Sunil Hi-Tech admittedly did
not contain any averment that any part of the cause of action had arisen
within the jurisdiction of this Court and this was taken note of by the
Learned Judge before dismissing the matter. In Khazana Projects, the
Division Bench was considering a challenge to a decision of a court at Purba
Medinipur by which the appellant's application for setting aside of an award
had been dismissed. The Court reiterated the principle that parties cannot,
by consent, confer jurisdiction on a court which does not otherwise have 16
jurisdiction to entertain the matter. The Court also noted the contention of
the appellant that the courts in Delhi were vested with the necessary
jurisdiction since an execution application had been filed in Delhi, which
was also the stand of the respondent in that matter. Neither of the parties
herein have urged anything to the contrary to the principle laid down in
paragraph 3 of Hakam Singh, namely that parties cannot, by agreement,
confer jurisdiction on a court which the court does not possess under
section 20 of The Code of Civil Procedure, 1908.
21. BALCO and Indus Mobile Distribution Private Limited Vs. Datawind
Innovations Private Limited reported in (2017) 7 SCC 678 cited on behalf of
the petitioner proceed on the basis that the situs of arbitration will confer
jurisdiction on the court attached to the seat. Both BGS SGS SOMA and
Hindustan Construction Company are authorities for the proposition that the
seat of arbitration would determine the court which would be empowered to
receive, try and entertain the proceedings under the 1996 Act. The issue
before the Supreme Court in BGS was the significance of the seat of
arbitration for filing an application for setting aside of an award under
section 34 of the Act. Paragraph 59 of BGS clarified that an application
under section 9 may be preferred before a court in which part of the cause
of action arises in a case where the parties have not agreed on the seat of
arbitration and the earliest application made in such a case would then be
the exclusive court under section 42 which would thereafter have control
over the arbitral proceedings. This dictum was followed by the Supreme 17
Court in the recent decision in Hindustan Construction. Swastik Gases
construed the effect of a jurisdiction clause in the agreement and the use of
words such as "alone", "only", etc., for conferring exclusivity to one place in
exclusion of all other places. The Supreme Court held that by making a
provision that the agreement is subject to the jurisdiction of the courts at
one particular place, the parties have excluded the jurisdiction of other
courts by implication.
22. Debdas Routh has been relied on by both the parties. The Division
Bench of this Court construed several decisions passed by the Supreme
Court and the High Courts on the interpretation of section 2(1)(e) of the
1996 Act- "Court"- the focus being on that given by the Supreme Court in
Indus Mobile. The Division Bench was of the view that the operative words in
section 2(1)(e)(i), post-amendment, require the court/courts to be identified
on the basis of where a civil suit involving the same subject matter would
have been filed akin to place of suing under sections 15 to 20 of the CPC or
the Letters Patent in the case of a High Court exercising ordinary original
civil jurisdiction. The Division Bench recognised the importance of a forum
of choice provided the chosen court has the jurisdiction otherwise to receive
the civil action. The Court held that the extent of party autonomy is subject
to the rules of public policy as recognised in sections 15 to 20 of the CPC in
line with the principle elucidated in Hakam Singh vs. Gammon (India). After
construing the effect of party autonomy in the matter of choosing the seat of
arbitral reference as opposed to the forum of choice, the Court concluded 18
that the ratio in Indus Mobile has to be read down in the light of the dictum
in Hakam Singh, namely, that in a domestic arbitration when parties to an
arbitration agreement choose a seat for the arbitral reference as well as a
particular court at the same place as the seat, that court becomes the court
of exclusive jurisdiction for all application under Part I of the Act subject to
the caveat that the said court is otherwise clothed with the authority to
receive the action under the section 2(1)(e)(i) of the Act read with sections
15-20 of the CPC or Clause 12 of the Letters Patent as the case may be. On
consideration of the facts in that matter, the leave granted under Clause 12
in one of the appeals was revoked and the finance company which had filed
the application under section 9, was directed to carry it to the appropriate
court.
23. The principles enunciated in the decisions cited can be structured
thus; that an application under section 9 can be filed where a part of the
cause of action has arisen or where the seat of arbitration has been chosen
by the parties with the definitive caveat that the court determined, otherwise
has the jurisdiction to receive and adjudicate the disputes between the
parties. As discussed above, the petitioner has stated that part of the cause
of action as pleaded in paragraphs 2, 3, 9 and 43 of the application has
arisen within the jurisdiction of this court. It must also be borne in mind
that the parties have consented to the jurisdictional clause-18(k) as well as
the seat of arbitration as provided in clause 18(l). Both these clauses point
to "Kolkata". The objection is to the interpretation of the outer limits of the 19
city of Kolkata and whether the clause can be stretched to include the
greater city of Kolkata. Section 2(1)(e)(i) of the 1996 Act designates the
principal Civil Court of original jurisdiction in a district including the High
Court in exercise of its Ordinary Original Civil Jurisdiction having
jurisdiction to decide the questions forming the subject-matter of the
arbitration for the purpose of applications in matters of domestic arbitration
under Part I of the Act. The discussion would have been different had the
issue in the present case been one where the petitioner would be left to rely
only on the seat/venue of arbitration without the assistance of an exclusive
jurisdiction clause also pointing to Kolkata. Section 2(1)(e)(i) as well as the
effect of The Commercial Courts Act, 2015 have fortunately come to the aid
of the petitioner to anchor the proceedings to the High Court at Calcutta as
the only available court to decide the matter. The presumption of the
contract having been signed at the office of the petitioner situated within the
Ordinary Original Civil Jurisdiction of this Court also tilts in favour of the
petitioner.
24. Unlike a challenge made to the territorial jurisdiction of a court in a
suit where the court decides on the issue of rejection of a plaint on a
meaningful reading thereof, the assessment of the jurisdiction issue in an
application under section 9 of the 1996 Act stands on a different footing. An
application under section 9 for interim relief urged in the background of an
arbitration agreement between the parties is time-sensitive where the court
has to decide on a prima facie assessment of the materials available before 20
it. Hence, such applications are antithetical to leading evidence for deciding
the issue of jurisdiction. The Court must therefore proceed on a conjoint
reading of the averments, the documents and the strength of the rebuttal of
such by the party who asserts that the petition must be taken elsewhere.
The first principles of the burden of proof under The Indian Evidence Act,
1872, would also come into play in such cases; namely that whoever asserts
the existence of certain facts to a legal right, must prove that those facts
exist. In this case, since the respondent has asserted that this Court does
not have jurisdiction to entertain the application, the respondent must
discharge that burden by adducing evidence which would dislodge the
factual statements and evidence shown by the petitioner for conferring
jurisdiction on this Court to decide the matter. The respondent has not
been able to discharge that burden on the strength of the documents placed
before the court.
[
25. For the reasons as stated above, the preliminary objection of the
respondent with regard to the jurisdiction of this Court, fails. The
application under section 9 of the 1996 Act will proceed for hearing on
merits before an appropriate bench within a fortnight from date.
Urgent Photostat certified copy of this Judgment, if applied for, be
supplied to the parties upon compliance of all requisite formalities.
(MOUSHUMI BHATTACHARYA, J.)
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