PENIEL CASHEW COMPANY & ORS. Vs. AHCOM SARL

JUDGEMENT

(1.) A foreign award is under execution before the District Court in E.P. No.97 of 2013, under section 47 of the Arbitration and Conciliation Act, 1996, (hereinafter referred to as "the Act"). In the course of the proceedings, question arose regarding the jurisdiction of the District Court to proceed with execution in view of the amendment to Section 47 as per Act 13 of 2016. As per the amendment, the court having jurisdiction to execute foreign award is the High Court. The amendment came into force with effect from 23.10.2015. As per the impugned order, the District Court affirmed its jurisdiction to proceed with execution. The same is under challenge by the award debtor.

(2.) The court below upheld its jurisdiction footing on an inter-parte judgment by a Division Bench of this Court in an earlier round in relation to the same award. The said Original Petition viz. O.P.(C).2932/17, related to the jurisdiction of the court to direct the award debtor to furnish security for the award amount. In the judgment dated 25.10.2017, this Court observed thus:

(3.) The learned District Judge was of the opinion that since this Court restricted the right of the award debtors to raise defences which could be urged from that stage alone, the award debtors are entitled to agitate on the issue of jurisdiction.