LAWS(DLH)-1984-10-9

GUPTA SANITARY STORES Vs. UNION OF INDIA

Decided On October 15, 1984
GUPTA SANITARY STORES Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) IN this arbitration case the question referred to the Full Bench is one of jurisdiction. Two questions arise on the reference. One whether the Union of INdia "carries on business" within the meaning of section 20 of the Code of Civil Procedure. Second whether the Delhi Courts have Jurisdiction to entertain an application under sections 14 and 17 of the Arbitration Act against the Union of INdia not on the ground that the cause of action arose here but solely on the ground that the Union of INdia has its central seat of power at New Delhi.

(2.) THESE are the facts. Gupta Sanitary Stores, petitioner, entered into a contract with the respondent, Union of India, for "improvement of water supply at Joshimath" in 1969-70. There was an arbitration clause in the contract. Disputes arose between the parties. They were referred to the sole arbitration of K. S. Sil, Commander Works Engineer, Bareilly Cantt. He made the award on 31-10-1979. Of the making of the award he gave notice to the parties.

(3.) THE rule as to forum is that the plaintiff can sue at the place where the defendant at the commencement of the suit "actually and voluntarily resides, or carries on business, or personally works for gain". It is with these three expressions used in clauses (a) and (b) that I am concerned in this case.