VERSATILE CONSTRUCTION Vs. TATA MOTORS FINANCE LTD

JUDGEMENT

(1.) The present appeal has been preferred against the order dtd. 30/9/2024 passed by the single judge bench of Hon'ble Justice Sabyasachi Bhattacharya in GA COM 1 of 2024 arising out of AP COM 822 of 2024 wherein the learned single judge refused to adjudicate the application for setting aside of the Award under Sec. 34 of the Arbitration and Conciliation Act (hereinafter referred to as "the Act") along with the connected application under Sec. 9of the Actbefore this Court due to lack of territorial jurisdiction.

(2.) The primary issue for consideration in this appeal is whether the City Civil Court or any other civil court in the State of West Bengal would have jurisdiction to entertain an application under Sec. 34 of the Arbitration and Conciliation Act, 1996 in view of a dispute being raised by the present appellant with regard to the validity of the arbitration agreement.

(3.) The facts of the case enumerate that the appellant herein is a proprietary concern engaged in the business of construction and transportation i.e, hiring vehicle for carrying goods. It had purchased a vehicle bearing registration No. WB39B9650 i.e., "Dumper" on 21/10/2020 on hire-purchase basis financed by the respondent. The appellant obtained a loan for an amount of Rs.42,16,095.00 out of which he had paid an amount of Rs.28,23,796.00 and the balance amount of Rs.13,92,299.00 was payable to the respondent. The respondent had invoked the arbitration clause contained in the loan agreement and a notice dtd. 19/7/2022 was sent to the appellant but the appellant had admittedly not chosen to participate in the arbitration since he did not consent to the said arbitrator in terms of Sec. 12(5) of the Arbitration and Conciliation Act. Subsequently an award dtd. 9/9/2024 was passed in the arbitration proceeding being arbitration case No. TMFL/295/5792 of 2022 held by Mr. Sachin Gorwadkar, the sole arbitrator.