SHARMA ENTERPRISES Vs. C M C LIMITED

JUDGEMENT

(1.) This is a petition for appointment of an arbitrator as the petitioner seeks the appointment of the arbitrator stationed at Delhi whereas the respondent/objector has questioned the territorial jurisdiction of this court by contending that not only the agreement between the parties was entered and executed at Secundrabad but also the work was executed at Hyderabad and parties had agreed to invoke the jurisdiction of the courts at Secundrabad in respect of the disputes arising of and in any way connected with the agreement.

(2.) Admittedly, the Corporate Office of petitioner is situated in Delhi though the registered office is at Hyderabad. It is admitted that part payment was made at Delhi though most of the payments were made at Hyderabad. In the face of these facts, the Arbitration clause is most important for deciding the jurisdiction. Relevant Clause is 34. It provides that "all disputes and differences shall be referred to and settled by the Project Manager, Consultant. Admittedly, the Project Manager Consultant is stationed at Delhi.

(3.) Section 20(c) of the Civil Procedure Code provides help in deciding the jurisdiction of the court. Sub clause (c) of Section 20 entitles a party to institute a suit at a place where either whole or part of cause of action arises. Where corporation is involved, it is deemed to carry on business at its sole or principal office or in respect of any cause of action arising at any place where it has also subordinate office at such place.