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2000 (3) TMI 1100

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..... gwan Dass Nagar. New Delhi. On receiving notice of the Petition, this application has been filed in which the substantial challenge is centered on the maintainability of the Petition itself. As the first order dated 16.7.1999 will indicate, it is not in controversy that when the Petition was filed, the disputes were already being adjudicated in London before Mr. Clive Aston, Arbitrator, pursuant to orders of the High Court of Justice at London. On the strength of a decision of this Court rendered in Dominant Offset Pvt. Ltd. v. Adamovske Strojimy A.S., I had granted the injunction even though proceedings were pending outside India, though undisputedly in accordance with the arbitration clause between the parties. 2. Dr. A.M. Singhvi, lea .....

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..... n that a number of decisions have already been rendered by Single Benches of this Court on the subject. 3. In Unicon Gmbh Rahn Plastmaschinen Anr., a learned Single Judge of this Court had held Section 9 of the Act not to be available to the Petitioner since the parties to the Agreement were foreigners and the place of Arbitration was outside India and the applicable law was also not Indian. Forum shopping is to be strongly deprecated, as has, in essence, been done by J.E. Goel, J. However this precedent is not an authority for the proposition advanced by the learned counsel for the Defendant since uncontrovertedly, in the present case, the Respondent is an Indian Company, and its assets appear to be located entirely in India. I am oth .....

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..... an important right of every person, it is essential that the jurisdiction of the courts is construed harmoniously and consistently with its vital function in that respect, so that absence of legislation will not jeopardise that right . Even if there is some doubt as to the applicability of Section 9 to foreign arbitrations, Courts must lean towards an interpretation which is permissive rather than restrictive. If jurisdiction of Indian Courts was intended to be ousted this could have been achieved by employment of the words only in Section 2(2). Conspicuously, this is not so. Furthermore, Section 11 has been held to empower a court in India to refer parties to even a 'foreign arbitration'. If that be so, Section 42. assumes great .....

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..... ns and to all proceedings relating thereto. Sub-section (12)(a) of Section 11 also provides that when the .matter referred in Sub-sections (4),(5),(6),(7),(8) and (10) arise in an international commercial arbitration, the reference to 'Chief Justice' would be construed as a reference to 'the Chief Justice of India. A conjoint reading of all the aforementioned provisions clearly indicate that Sub-section (2) of Section 2 is an inclusive definition and that it does not exclude the applicability of Part I to those arbitrations which are not being held in India. The aforesaid interpretation gets support from the provisions of Sub-section (5) of Section 2 which provides that Part I shall apply to all arbitrations and to all proceedin .....

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..... ude the applicability of Part 1 to this arbitration which is not being held in India. The other clauses of Section 2 clarify the position beyond any doubt that this Court in an appropriate case can grant interim relief or interim injunction . 61. A close reading of relevant provisions of the Act of 1996 leads to the conclusion that the courts have been vested with the jurisdiction and powers to grant interim relief. The powers of the Court are also essential in order to strengthen and establish the efficacy and effectiveness of the arbitration proceedings . 8. Three learned Single Judges of this Court have separately concluded, by disparate dialectic, that the powers of the Court to grant injunctions under Section 9 would also extend .....

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..... Balfour Beauty Construction Limited and Ors 1993(1) All ER 664 where it was held that the English Courts possessed inherent powers to grant injunctive relief even where the seat of Arbitration was not in England. This view has now obtained statutory sanction in terms of the English Arbitration Act. This is the ubiquitous view internationally. I see no reason to adopt a pedantic approach and thereby render the legal regime in India dissimilar to that prevailing in other, parts of the world. The globe is now becoming a village, and persons will have increasing to choose between several available Courts. Earlier these may be not have been available due to constraints of communication; So long as the choice is not capricious, merited relief sh .....

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