Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act Objection |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996-Section 16-Objection regarding non-existence of arbitration agreement-Jurisdiction of civil court to entertain On facts, Plaintiff seeking injunction against arbitration proceedings on the ground that there was no arbitration agreement-Trial court declining but High Court granting injunction on the ground that plaintiff has arguable case-On appeal, Held: Contentious issues are not to be gone into or decided at the stage of appointment of an arbitrator-Aggrieved party can raise all the objections including objection regarding non-existence of an arbitration clause before the arbitral tribunal-Thus, High Court erred in granting injunction-Code of Civil Procedure, 1908-order 39, Rules 1 and 2. Plaintiff, a cloth merchant had been purchasing the cloth material from an agent of defendant no. 1 having office at Calcutta under terms dictated by defendant no. 1. Dispute arose between them and defendant no. 1 referred the matter to arbitration. Plaintiff filed suit for injunction and application under Order 39 Rules 1 and 2 CPC, restraining arbitration proceedings on the ground that there was 110 arbitration agreement between them. Defendant no. 1 contested the application contending that the indent letter, bills/invoices which were sent to plaintiff mentioned that disputes were subject to Bombay jurisdiction and in case of dispute, same shall be referred to defendant no. 2. Trial Court dismissed the application holding that the arbitration proceedings having already commenced, it cannot interfere with the functioning of the arbitrator. On appeal, High Court stayed the arbitration proceedings. Hence the present appeal. Defendant No. 1 contended that the indent (contract) contained a clause that in case of dispute, the same shall be referred to defendant No. 2; that defendant No. 2 had sent a notice to the plaintiff asking it to nominate an arbitrator from the panel/list supplied to it and also to remit an amount of Rs. 200 towards the fee of arbitration. The notice was duly replied along with Rs. 200 and the plea of non-existence of arbitration clause in the agreement could be raised before the arbitrator under Section 16 of the Arbitration and Conciliation Act, 1996. Plaintiff contended that a part of cause of action had accrued at Calcutta and the plaintiff had never consciously agreed to any condition , that any dispute arising shall be decided by the courts at Bombay and by no other courts and, therefore, the court at Calcutta had the jurisdiction to try the suit. |
Judge | Hon'ble Mr. Justice G.P. Mathur |
Neutral Citation | 2005 INSC 161 |
Petitioner | Shree Subhlaxmi Fabrics Pvt. Ltd. |
Respondent | Chand Mal Baradia And Ors. |
SCR | [2005] 2 S.C.R. 1138 |
Judgement Date | 2005-03-29 |
Case Number | 7653 |
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