LAWS(JHAR)-2025-2-6

MECON LIMITED Vs. K.C.S. PVT. LTD.

Decided On February 04, 2025
MECON LIMITED Appellant
V/S
K.C.S. Pvt. Ltd. Respondents

JUDGEMENT

(1.) Heard Mr. Shresth Gautam, learned counsel for the petitioner and Mr. Suvendu Kumar Ray, learned counsel for the opposite party.

(2.) The petition has been filed under Article 227 of the Constitution of India praying therein to quash the order dtd. 30/11/2023, contained in Annexure-4 of the petition passed in Commercial Arbitration Case No.13 of 2023 by the learned Additional Judicial Commissioner-III cum Presiding Officer, Commercial Court, Ranchi, by which, the learned Commercial Court, Ranchi has dismissed the application filed by the petitioner under Sec. 34 of the Arbitration and Conciliation Act, 1996 (for the sake of brevity hereinafter to be referred to as 'the Act, 1996') on the ground that since in the present case, the learned Sole Arbitrator was appointed by the Hon'ble Orissa High Court, therefore, the learned Commercial Court, Ranchi does not have the jurisdiction to proceed with the application for setting aside the award. The further prayer is made to hold and declare that in the present case, in light of the exclusive jurisdiction clause contained in the contract entered into between the parties and the clear intention of the parties to subject the arbitration proceedings to the courts in Ranchi, only the courts in Ranchi, Jharkhand shall have jurisdiction to entertain any application arising out of and in connection with the instant arbitration proceedings. The prayer is also made to stay the further proceedings in connection with Execution Case No.186 of 2023, pending in the Court of the learned Civil Judge, S.D. Commercial Court, Cuttack, during pendency of this petition.

(3.) Mr. Shresth Gautam, learned counsel for the petitioner submitted that the petitioner is a Central Public Sector Undertaking, operating under the aegis of Ministry of Steel, Government of India and is engaged in the business of providing consultancy and engineering services. He submitted that the opposite party is a private limited company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of manufacturing, construction and civil/mechanical engineering. He further submitted that certain disputes had arisen between the petitioner and opposite party with regard to the contract that was entered into between the parties.