Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996: s.34 Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation (amendment) Act, 2015 (3 of 2016) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996: s.34 – Territorialjurisdiction – Dispute arose between the registered broker of theNational Stock Exchange (NSE) and its client regarding certaintransactions in securities and shares – Agreement between theparties contained a jurisdiction clause whereby the parties were tosubmit to the exclusive jurisdiction of the courts in Mumbai – Matterwas referred by the NSE to the arbitrator having sittings at Delhi –Respondent’s claim was rejected by the sole arbitrator – Respondentthen filed s.34 application before Delhi District Court – DistrictCourt dismissed s.34 application referring to the exclusivejurisdiction clause in the agreement – By impugned order, HighCourt remitted the matter to the Delhi District Court to decide thedisputed questions of fact as regards the existence of territorialjurisdiction of the courts at Delhi after framing issue to that effectand permitting the parties thereafter to lead evidence on the same –On appeal, Held: Once courts in Mumbai have exclusive jurisdictionin terms of agreement read with the NSE bye-laws then it is theMumbai courts alone, before which s.34 application was to be filed– High Court erred in remanding the matter for a full-dressed hearingon what he referred to as a ‘disputed question of fact’ relating tojurisdiction – The object of enactment of 1996 Act is speedyresolution of arbitral disputes – However, if issues are to be framedand oral evidence taken in a summary proceeding under s.34, thisobject will be defeated – An application for setting aside an arbitralaward will not ordinarily require anything beyond the record thatwas before the Arbitrator – However, if there are matters notcontained in such record, and are relevant to the determination ofissues arising under s.34(2)(a), they may be brought to the noticeof the Court by way of affidavits filed by both parties – Crossexaminationof persons swearing to the affidavits should not be allowed unless absolutely necessary, as the truth will emerge on areading of the affidavits filed by both parties – High Court erred inreferring back the parties to the District Court to first frame anissue and then decide on evidence including the opportunity to crossexamine witnesses who give depositions – Order of High Court isset aside and that of District Court is restored – Jurisdiction. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2018 INSC 724 |
Petitioner | M/s Emkay Global Financial Services Ltd. |
Respondent | Girdhar Sondhi |
SCR | [2018] 10 S.C.R. 937 |
Judgement Date | 2018-08-20 |
Case Number | 8367 |
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