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2000 (3) TMI 936

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..... By order dated 24-5-1999 the Principal District Judge, Raichur issued warrants of attachment of movable properties of the respondent as described in the application for execution filed by the appellant. By order dated 21-6-1999 the learned Principal District Judge dismissed the application of the respondent praying for lifting of the attachment already issued against it. 3. The appellant is a building contractor. The respondent is a Government company of the Government of Karnataka under the Companies Act, 1956. The Respondent awarded the contract for construction of a school building at Hatti in District Raichur to the appellant. An agreement dated 9-3-1995 was duly entered into. Clause 35 of the agreement contained the arbitration clause .....

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..... Raichur appellant wanted to enforce the Award under section 362. When the Court at Raichur issued warrants of attachment it was not aware of pendency of the application of the respondent under section 34 in the Court at Bangalore. Appellant had made no mention in his application about the pendency of the proceedings at Bangalore. However, when the respondent filed application before the Principal District Judge, Raichur for lifting of the order of attachment it was brought to his notice the pendency of the application under section 34 for setting aside the Award. Now, the learned Principal District Judge, Raichur held that Principal City Civil Court, Bangalore had no jurisdiction to entertain the application under section 34. On this premi .....

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..... ce to the generality of sub-clause (ii), it is hereby declared, for the avoidance of any doubt, that an award is in conflict with the public policy of India if the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81. (3) An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral Tribunal : Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months i .....

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..... risdiction of the Courts in Madras was ousted by the clause in the contract whereunder the parties had agreed that jurisdiction to decide any dispute under the contract would be only in the Courts at Bombay. Consequently, the Courts where the suit was instituted had no jurisdiction to entertain it. This court said that the explanation is really an Explanation to clause (a) viz., as to where the corporation can be said to carry on business. This, it is clarified will be the place where the principal office is situated (whether or not any business actually is carried on there) or the place where a business is carried on giving rise to a cause of action (even though the principal office of the corporation is not located there) so long as there .....

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..... the Courts at Bombay by an agreement. 6. In view of the decision of this Court in Patel Roadways Ltd.'s case (supra), it cannot be said that the Principal District Judge, Raichur had no jurisdiction to entertain the matter. But then the question arises, as rightly posed by the High Court, if in the given facts and circumstances of the case, could the Principal District Judge, Raichur had made the orders which are impugned, particularly, when it was brought to his notice pendency of the proceedings under section 34 of the Act in the Court of Principal City Civil Judge, Bangalore where the appellant itself had filed a CAVEAT under section 148A and also an application under section 94 of the Act seeking interim relief. The learned Principal D .....

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