VAIDYA INDUSTRIES Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) This application has been filed under Section 9(1) of Arbitration and Conciliation Act, 1996 on being aggrieved by the issuance of Notice No. 2402/SK dated 20.09.2019 issued under the signature of Respondent No. 04 intimating to the petitioner regarding rejection of request made vide letters dated 17.07.2019 and 13.08.2019, offering the upgraded version of the model of mobile sets, without mentioning any reason and directing the petitioner to supply as per terms of contract within 90 days and also to provide the supply schedule within three days.

(2.) It is submitted that the petitioner has a reasonable apprehension that Respondent authorities may take coercive action against the petitioner without taking recourse to the alternative dispute resolution mechanism as provided under General Terms and Conditions of contract. In this background the present petition has been filed under section 9(1) of the Arbitration and Conciliation Act, 1996 for the following reliefs:-

(3.) Counsel for the respondents has raised preliminary objection regarding the maintainability of the present petition by submitting that Jharkhand High Court is not exercising ordinary original civil jurisdiction with respect to the subject matter of commercial dispute arising out of contract and accordingly, the petition under Section 9 of Arbitration and Conciliation Act, 1996 is not maintainable before this Court. He refers to section 9 read with section 2( e) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act of 1996") to submit that the term 'Court' has been defined in section 2(e ) and the principal civil court of original jurisdiction in a district has been defined which includes the High Court in exercise of its ordinary original civil jurisdiction having jurisdiction to decide the question forming the subject matter of arbitration, if the same had been the subject matter of the suit. He submits that the definition of 'Court' under Section 2(1)(e) of the aforesaid Act of 1996 read with Section 9 of the said Act clearly indicates that the appropriate petition for relief under section 9 can be filed before the same Court which exercises jurisdiction to decide the question forming subject matter of the arbitration, if the same had been the subject matter of suit.