SREI EQUIPMENT FINANCE LIMITED AND ORS. Vs. AKHTAR HUSSAIN AND ORS.
LAWS(CAL)-2016-3-84
HIGH COURT OF CALCUTTA
Decided on March 02,2016

Srei Equipment Finance Limited And Ors. Appellant
VERSUS
Akhtar Hussain And Ors. Respondents

JUDGEMENT

Harish Tandon, J. - (1.) There has been a bunch of litigations by way of an execution of an award filed before this Court for recovery of sum below the pecuniary jurisdiction of this Court. A preliminary objection is raised whether the High Court in its Original Side can execute such award because of the definition of the Court enshrined under Sec. 2(1)(e) of the Arbitration and Conciliation Act, 1996. Some of the execution cases are filed by adding the interest in terms of an award on a principal sum below 10 lacs for the purpose of jurisdiction. In some of the cases the entire cause of action arose outside the territorial jurisdiction of the Original Side of the High Court but the execution is levied either the decree holder or the judgment debtors are within the jurisdiction. Some cases have been filed invoking the provisions of Sec. 42 of the Act as in earlier point of time, an application under Sec. 9 of the said Act was filed before this Court.
(2.) The points which arose in the bundle of the execution cases under consideration are firstly, whether the Original Side of the High Court confirms to the definition of "Court" as defined under Sec. 2(1)(e) of the Act if the sum awarded by the arbitrator is below Rs. 10 lacs. Secondly, whether the award can be enforced by the High Court in its Original Side had the dispute been the subject matter if the suit, is a subject matter of the arbitral proceeding. thirdly, if an approach is made to the High Court in its Original Side at an earlier point of time all subsequent application including an application for enforcement of the award is required to be filed before the same Court in view of Sec. 42 of the Act. Fourthly, if the claim is awarded for a sum less than Rs. 10 lacs, whether such award can be enforced by the High Court in its Original Side as the quantum of interest if added to the original sum would exceed Rs. 10 lacs.
(3.) Before proceeding to deal with the aforesaid points it would be profitable to quote relevant provisions of the said Act which are as under: - - "Section 2(1) (e): "Court" means 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;" "Section 36: Enforcement: Where the time for making an application to set aside the arbitral award under Sec. 34 has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the Court." "Section 42: Jurisdiction: Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force, where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court.";


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