BRANCH MANAGER ORIENTAL Vs. JAI BHAWANI PVT LTD

JUDGEMENT

(1.) OPPOSITE party M/s. Jaya Bhawani Pvt. Ltd. has a Rice Mill at Bolangir. Opposite party entered into an Insurance contract with Bolangir Branch office of M/s. Oriental Insurance Company. The policy of Insurance was issued by Bhawanipatna Branch Office as the prescribed policy forms were not available at Bolangir. Contract of insurance contained an arbitration clause (Clause 13). There was a fire in the said rice mill at Bolangir causing damages. Opposite party lodged a claim for compensation before Bolangir Branch office of Insurance Company. Entire claim of opposite party was not accepted by Insurance Company. Compensation paid by the Insurance Company did not satisfy the opposite party. Arbitration clause was invoked and both the Insurance Company and the opposite party nominated their respective arbitrator for determination of the dispute. The Arbitrator appointed by the Insurance Company was a Chartered Accountant of Bhubaneswar while the Arbitrator appointed by the opp. party was an Advocate practising at Cuttack. In the claim statement filed by the opp. party - Branch Manager, Bhawanipatna Branch of the Insurance Company and the Regional Manager of Insurance Company having its office at Bhubaneswar were impleaded as respondents.

(2.) THE Arbitrators conducted arbitration proceeding at Bhubaneswar and passed their Award. As some controversy arose regarding fees payable to the Arbitrators the present petitioners filed an application before the Civil Judge (Senior Division), Bhubaneswar on January 5, 1996 under Section 38 of the Arbitration Act (hereinafter referred to as the 'Act') for determination of the amount payable to the Arbitrators and for directing the Arbitrators to file the Award in Court. Said application was registered as Misc. Case No. 10/96. On February 9, 1996 the Arbitrators filed their Award in the Court of the Civil Judge (Senior Division), Bolangir for making it a rule of the Court and it was registered as Title Suit No. 18/96. On April, 16, 1996 the present petitioners filed an application in the Court at Bolangir contending that as Misc. Case No. 10/96 was earlier filed before the Civil Judge, Senior Division, Bhubaneswar, Bolangir Court has no jurisdiction to entertain any proceeding relating to the said arbitration in view of Section 31(4) of the Act. By order No. 11 dated June 27, 1996 Civil Judge (Sr. Divn.), Bolangir rejected said objection relating to his jurisdiction and decided to proceed with the proceeding for making the Award as a rule of the Court. Present petitioners have filed this Revision against the aforesaid order dt. June 27, 1996.

(3.) QUESTION which arises for determination in the present revision is whether the Court at Bhubaneswar can be called a 'competent Court' to entertain an application arising out of or regarding the conduct of the arbitration proceeding between the parties.