- (1.) Heard both sides. The suit is transferred to the Ld. 14th Court of Addl. District Judge, Alipore for disposal along with the petition U/o 39 Rule 4 of C.P.C. Fix. 12.05.2010 for appearance before the transferee Court. Interim order stands extended till the date fixed.
(2.) The parties entered into a contract, which incorporated an Arbitration Clause. The respondents executed bank guarantees as and by way of co-lateral security not only as performance guarantee but also for payment of outstanding sums, if payable by the respondents to the appellant. The appellant, by a letter dated January 5, 2010 appearing at page 131 of the paper book, threatened to invoke the bank guarantees in case the respondents failed to make payment to the subcontractors who were pestering for payments. From the letter it appears that there were some difficulty, the respondents were facing with their sub-contractors with regard to payment of bills.
(3.) Being aggrieved by the said letter the respondents approached the learned District Judge, Alipore, challenging the authority and propriety of the appellant, encashing the bank guarantee which was furnished by the respondents for some other purpose not related to the subject controversy. The agreement stipulated an Arbitration Clause as well as a forum selection Clause whereby Delhi Courts would have exclusive jurisdiction over the controversy, if any, between the parties under the agreement. The respondents, however, approached the Alipore Court on a different pretext. According to them, the meetings were held between the parties at New Alipore. The letter of threat was received at New Alipore. Hence, the subject controversy arose within the jurisdiction of the Alipore Court and as such forum selection Clause would have no application.;