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Guru Nanak Foundation v. Rattan Singh & Sons, (1981) 4 SCC 634

GURU NANAK FOUNDATION V. RATTAN SINGH & SONS

Guru Nanak Foundation v. Rattan Singh & Sons, (1981) 4 SCC 634

ISSUE:

  • Whether the High Court has jurisdiction over the arbitration proceeding? Pursuant to the procedural history, which is the court having jurisdiction in which the Award should be filed by the arbitrator?

RULE:

  • Section 31(4) not only confers exclusive jurisdiction on the court to which an application is made in any reference but simultaneously ousts the jurisdiction of any other court which may as well have jurisdiction in this behalf.

FACTS:

  • An application was made to the High Court under Section 20 of the Arbitration Act for direction to file an arbitration agreement in that court. The court made an order of reference to 2nd respondent as an arbitrator.
  • A subsequent application was made under section 5 read with section 11 for removal of 2nd respondent as an arbitrator. The application was dismissed.
  • An appeal was filed in the Supreme Court which directed the 3rd party as arbitrator who proceeded and filed an award and filed in the High Court.
  • The present petition was filed seeking a declaration that the Arbitration has to be filed in the Supreme Court under section 14(2) read with 31(4).

HELD:

  • In this case the Supreme Court had complete control over the proceeding before the arbitrator. The Supreme Court having the exclusive jurisdiction to entertain the Award, the same cannot be defeated on the plea that the right of appeal under Article 136 would be denied.
  • Therefore, under section 31(4) the supreme court alone has jurisdiction.