Jurisdictional Aspects of Interim Measures in Arbitration

Introduction

In the previous articles, we explored the scope and application of Section 9 and Section 17 of the Arbitration and Conciliation Act, 1996, both of which deal with interim measures in arbitration proceedings. In this final article of the series, we will explore the jurisdictional aspects of filing a Section 9 application.

Pecuniary and Territorial Jurisdiction

The determination of whether a Section 9 application should be filed in a High Court or a District Court is not based on pecuniary jurisdiction. Instead, it depends on the nature of the arbitration (whether it’s domestic or international commercial arbitration) and the specifics of the arbitration agreement between the parties¹.

In terms of territorial jurisdiction, if the contract between the parties is silent on the Seat of Arbitration, Section 9 applications can be preferred in the territorial Jurisdiction of any Court where part cause of action had arisen. However, once a competent Court having jurisdiction has been approached, all subsequent applications are to be filed in the same Court.

If the contract between the parties designates a Seat of Arbitration, and there is cause of action in the place designated as the Seat of Arbitration, Section 9 applications can be preferred in the territorial Jurisdiction of any Court where part cause of action had arisen¹. However, once a competent Court having jurisdiction has been approached, all subsequent applications are to be filed in the same Court.

Case Laws and Application of Jurisdiction

The Supreme Court in the case of Executive Engineer, Road Development Division No.III, Panvel & Anr. v Atlanta Limited analyzed the definition of “Court” to determine which court would hear challenges to an arbitral award (or arbitral agreement, or arbitral proceeding) where jurisdiction lies with more than one court and the parties initiate proceedings in multiple courts simultaneously. The Court held that when a Section 34 petition is simultaneously filed in a District court and a High Court, the High Court having ordinary original civil side jurisdiction will have primacy to hear the petition².

In another case, Bgs Sgs Soma Jv vs Nhpc Ltd., the Supreme Court held that the designation of a seat confers exclusive jurisdiction on the courts of said seat; and a place of arbitration, regardless of its designation as a seat, venue or place, is the juridical seat of arbitration unless there is an indication to the contrary ³.

Conclusion

In conclusion, the jurisdictional aspects of filing a Section 9 application play a crucial role in the arbitration process. The determination of the appropriate court for filing a Section 9 application depends on the nature of the arbitration and the specifics of the arbitration agreement between the parties. Various case laws have clarified the application of these principles. This wraps up our series on interim measures under the Arbitration and Conciliation Act, 1996.

Learn more

• 1.vertarilegal.com
• 2.mondaq.com
• 3.barandbench.com
• 4.taxguru.in