JUDGEMENT
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(1.) This appeal is at the instance of a defendant in a suit for declaration and
consequential relief and is directed against an order dated June 30, 2010 passed
by a learned Single Judge of this Court by which His Lordship disposed of the 2
suit by directing the defendant to refer the disputes involved in the suit to
Arbitrator in accordance with the agreement between the parties.
Being dissatisfied, the defendant has come up with this appeal under
Clause 15 of the Letters Patent.
Mr. Mitra, the learned Advocate appearing on behalf of the plaintiffrespondent, at the outset, has taken a preliminary objection as to the
maintainability of this appeal on the ground that by the order impugned the
learned Trial Judge having in reality passed a direction under Section 8 of the
Arbitration and Conciliation Act, 1996 ("Act"), no appeal lies against such order
under the Act. In support of his contention, Mr. Mitra has relied upon a decision
of a Division Bench of this Court in the case of Surekha Steel Limited vs. Union of India,1998 CWN 287.
Mr. Bose, the learned Advocate appearing on behalf of the appellant has,
however, opposed the aforesaid contention of Mr. Mitra and contended that by
way of the forum selection clause contained in the selfsame agreement between
the parties where there is a provision of reference to arbitrator, the jurisdiction of
the Trial Judge having been excluded, the order impugned was passed by a Court
having no territorial jurisdiction to pass even such an order under Section 8 of
the Act and thus, the present appeal is maintainable against an order passed by
a Court lacking territorial jurisdiction, particularly, when the learned Trial Judge
has accepted the position that by virtue of the forum selection clause, the 3
jurisdiction of the Calcutta High Court has been excluded. Mr. Bose, thus, prays
for setting aside the order impugned and allowing the appeal.
(2.) Therefore, the preliminary question that arises for determination is
whether the present appeal is maintainable
After hearing the learned counsel for the parties and after going through
the materials on record, we find that after entering appearance in the suit, the
appellant, at the very first opportunity, prayed for revoking the leave granted
under Clause 12 of the Letters Patent pointing out that in view of forum selection
clause, the jurisdiction of the Calcutta High Court has been excluded and that
there was also a clause in the agreement for reference to arbitration and thus,
prayed for vacating the interim order. The Court also accepted the said position
and vacated the interim order. But the plaintiff maintained that if the Court had
no jurisdiction to entertain the dispute in view of the arbitration clause, in that
event, the matter should be referred to arbitration in terms of Section 8 of the
Act.
(3.) The learned Single Judge has accepted the said submission of the Plaintiff
and after revoking the leave granted under Clause 12 of the Letters Patent,
nevertheless, passed an order of reference in terms of Section 8 of the Act. The
learned Single Judge has, however, specifically clarified by recording that "the
leave granted under clause 12 stands revoked not on the ground of lack of 4
territorial jurisdiction, but to hold the plaintiff to it [sic] bargain in terms of the
forum selection clause".;
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