R D TEXTILES Vs. S S MANI

JUDGEMENT

(1.) THIS application has been filed for the rejection of the O.P.No.514 of 2011 filed under Section 34 of the Arbitration Act, 1996 on the ground that it should have been presented before the proper Court at Mumbai.

(2.) DUE to the disputes and differences between the applicant and the respondent in the application, the respondent made a claim against the applicant for a sum of Rs.29,13,197/- with interest and approached the Confederation of Textile Trader Associations, Mumbai to refer the dispute to the arbitration committee. The Confederation of Textile Trader Associations forwarded the reference papers with annexures to the applicant herein with a request to appoint an arbitrator for him from the list of Arbitrators and to file a written statement. The applicant, besides filing a written statement on 24.12.2010 making out the plea of defence, also sent a letter on 29.12.2010 requesting the Confederation to appoint any of the arbitrators from the panel. As such the second respondent, Mr.Trambak Lak D.Shah was appointed as the sole arbitrator, which appointment was also accepted by the first respondent. The case was taken on file in Arbitration Case No.7/2010-2011 by the arbitrator.

(3.) THE respondent has filed a Counter affidavit contending that the present application is not maintainable as O.P.No.514 of 2011 has been filed before this Court as the proper Court. It has also been stated in the counter affidavit only after the filing of the original petition challenging the award on the file of this Court, the applicant chose to file an application under Section 9 of the Arbitration and Conciliation Act before the Bombay High Court, Mumbai and that as per Section 42 of the Arbitration and Conciliation Act, 1996, if any application in respect of an arbitration agreement is made by a party to a Court having jurisdiction, the other Courts, except the said Court, shall not have the jurisdiction to entertain any further application. The respondent has also contended that since the original petition was filed before this Court earlier in point of time and the application under Section 9 was filed by the applicant herein before the Bombay High Court subsequent to the filing of the original petition in this Court, the said application filed before the Bombay High Court was barred by Section 42 of the Arbitration and Conciliation Act 1996 and that hence, the present application for rejection of the original petition or for return of the same for presentation of the same before the proper Court should be dismissed as not maintainable.