ESCORTS LIMITED Vs. G K AUTOMOBILE

JUDGEMENT

(1.) This is a petition under Section 9 of the Arbitration and Conciliation Act, 1996 read with Section 151 of the Code of Civil Procedure, 1908 whereby the petitioner is seeking the relief of a direction being passed by this court restraining the respondent, its representatives, employees, agents, attorney from selling, alienating, transferring, parting with the possession and/or creating third party interest.in property bearing Nos.434, 448 and 453 situate at Jila Parishad, Janta Market, Bulandshahar (UP). Two major objections have been raised by the respondent insofar as this application is concerned. The first being that this court does not have the territorial jurisdiction to entertain the present petition under Section 9. The second objection is that even if this court had territorial jurisdiction to entertain the present petition, the order that is being sought by the petitioner cannot be granted inasmuch as the properties mentioned above do not belong to the respondent.

(2.) It is clear that if this court does not have territorial jurisdiction then the question of deciding the second objection would not arise. Therefore, the learned counsel for the parties argued this petition on the issue of territorial jurisdiction.

(3.) Before the question of territorial jurisdiction is examined, it would be necessary to place on record certain facts. It is an admitted position between the parties that the parties entered into a Dealer Sales Agreement on 29.04.1992. Under this agreement, the respondent was appointed as a dealer of the petitioner for the sale and supply of tractors manufactured by the petitioner. The respondent conducts its business from Bulandshahar, UP. The respondent was to take supplies of tractors from the petitioner on advance payment basis. The tractors so delivered to the respondent by the petitioner from its depots in Faridabad, Agra and Ghazlabad were sold by the respondent to the consumers who were mainly farmers. The said Agreement dated 29.04.1992 is comprised in two parts. The first part is entitled Dealer Sales Agreement and the same goes up to clause 8. Thereafter, the same has been signed and executed by the parties and attested by two witnesses. The second part is entitled Standard Provisions which continues from clauses 9 to 36 and at the end it is once again signed and executed by the parties in the presence of witnesses who had attested the same. Both these parts apparently were executed on 29.4.1992. The portions of the agreement which are material for the purposes of this application are the opening words of the recitals in the Dealer Sales Agreement to the following effect: "Agreement made at New Delhi by and between ........."