AKSH OPTIFIBRE LIMITED Vs. B.S.N.L.

JUDGEMENT

(1.) PETITIONER -Aksh Optifibre Limited has filed this petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking an ad -interim order, staying the invocation of bank guarantees, listed in Schedule A to the petition, Annexure P -12 and Annexure P -13 (page 88 -89 of the paper book). Petitioner had contended that the encashment of six out of nine bank guarantees was unwarranted, as they were not the subject matter of the contracts, where the respondents were claiming excess payment. For the remaining, it was contended that the encashment was not in terms of the bank guarantees. The Court, vide order dated 21.2.2003, had granted an interim injunction against the encashment of bank guarantees. Reply has been filed by the respondents. A preliminary objection as to the lack of territorial jurisdiction has been raised. By this order/judgment, the preliminary objection as to the lack of jurisdiction to try and entertain this petition under Section 9 is being decided.

(2.) LEARNED Counsel for the respondent, Mr. Dinesh Agnani, submitted that invitation to tender had been issued from the respondents' office at Chandigarh. The bids were received at Chandigarh. The acceptance of tender was also issued from Chandigarh. The purchase order had been issued by the Respondents from Chandigarh to the petitioner at Gurgaon, Haryana. The entire correspondence and the performance bank guarantee was also submitted by the petitioner to the respondents at their Punjab Circle office at Chandigarh. The cause of action it was urged had arisen within the jurisdiction of the High Court of Punjab and Haryana at Chandigarh. This Court, accordingly, did not have the jurisdiction to try and entertain this petition.

(3.) REFERENCE may also be usefully made to Clause 20.1 and 20.3, which are in the following terms: -