TMI Blog2022 (10) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial cases of high pecuniary value - the Objects and Reasons of Commercial Courts Act, 2015 is to provide for speedy disposal of the commercial disputes which includes the arbitration proceedings. To achieve the said Objects, the legislature in its wisdom has specifically conferred the jurisdiction in respect of arbitration matters as per Section 10 of the Act, 2015. At this stage, it is required to be noted that the Act, 2015 is the Act later in time and therefore when the Act, 2015 has been enacted, more particularly Sections 3 10, there was already a provision contained in Section 2(1)(e) of the Act, 1996. As per settled position of law, it is to be presumed that while enacting the subsequent law, the legislature is conscious of the provisions of the Act prior in time and therefore the later Act shall prevail. Considering the provisions of the Act, 2015 and the Objects and Reasons for which the Act, 2015 has been enacted and the Commercial Courts, Commercial Division and Commercial Appellate Division in the High Courts are established for speedy disposal of the commercial disputes including the arbitration disputes, Sections 3 10 of the Act, 2015 shall prevail and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial Court i.e., the Court of Civil Judge (Senior Division) [designated as Commercial Court]. Therefore, the appellants herein challenged the aforesaid notification and designating the Courts of Civil Judge (Senior Division) as Commercial Courts under the Act, 2015 before the High Court by way of present writ petitions. It was the case on behalf of the appellants original writ petitioners that constituting and/or designating the Courts of Civil Judge (Senior Division) as Commercial Courts and to exercise the powers under the Commercial Courts Act would be in conflict with the provisions of Section 2(1)(e) of the Arbitration Act, 1996. It was the case on behalf of the appellants herein that under Section 2(1)(e) of the Arbitration Act, 1996, only the Principal Civil Court of original jurisdiction in a district (Court of Principal District Judge) shall be the Court for the purpose of deciding the disputes under the Arbitration Act, 1996 and in case of an arbitration it does not include any Civil Court of a grade inferior to such Principal District Judge. Therefore, it was the case on behalf of the appellants that to confer the jurisdiction upon the Court of Civil Judge (Seni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 SCC 619 and State of West Bengal and Ors. Vs. Associated Contractors; (2015) 1 SCC 32. 3.4 It is further submitted by Ms. Babbar, learned counsel appearing on behalf of the appellants that the Arbitration and Conciliation Act, being a special statute vis vis the Commercial Courts Act, shall prevail over the Commercial Courts Act in the case of any conflict as held by this Court in the cases of Fuerst Day Lawson Ltd. Vs. Jindal Exports Ltd.; (2011) 8 SCC 333 and Kandla Export Corporation and Anr. Vs. OCI Corporation and Anr.; (2018) 14 SCC 715, the Arbitration and Conciliation Act shall prevail. 3.5 It is further submitted that the High Court has proceeded on an erroneous premise that the Arbitration and Conciliation Act must yield to the Commercial Courts Act as both are special statutes, and the Commercial Courts Act is the later statute. It is submitted that aforesaid is contrary to the aforesaid two decisions of this Court. It is submitted that as observed and held by this Court in the case of Fuerst Day Lawson Ltd. (supra) the Arbitration Act is a selfcontained code and exhaustive and therefore, the same shall prevail over the Commercial Courts Act being a Special Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Division of the High Court. It is submitted that the Commercial Courts Act and the establishment of Commercial Courts are with a view to facilitate early disposal of the high value disputes/commercial disputes. It is submitted that with a view to achieving the object of speedy disposal of the commercial disputes, the legislature has enacted the Commercial Courts Act, 2015. It is submitted that under Section 3 of the Commercial Courts Act, 2015, a commercial Court can be set up and a commercial Appellate Court can be set up under Section 3A of the Commercial Courts Act, 2015. It is submitted that a dispute relating to arbitration is a commercial dispute under Section 2(c) of the Commercial Courts Act, 2015. It is submitted that Section 10 of the Commercial Courts Act, 2015 is a special provision in respect of arbitration matters. It is submitted that as per subsection (3) of Section 10, if the arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration Act that would ordinarily lie before any principal civil court of original jurisdiction in a district, shall be filed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under Sections 9, 14 and 34 of the Arbitration and Conciliation Act, 1996, upon Commercial Courts which are subordinate to the rank of the Principal Civil Judge in the District, contrary to the provisions of Section 2(1)(e) of the Arbitration Act? 7. While considering the aforesaid question of law, relevant provisions of the Arbitration Act, 1996 and the Commercial Courts Act, 2015 are required to be referred to and considered, namely, Section 2(1)(e) of the Arbitration Act and Sections 3, 10, 15 21 of the Commercial Courts Act, 2015, which read as under: Section 2(1)(e) of the Arbitration Act, 1996: (e) Court means (i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subjectmatter of the arbitration if the same had been the subjectmatter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes; (ii) in the case of international commercial arbitr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) If such arbitration is an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed in a High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (2) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed on the original side of the High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (3) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be filed in, and heard and disposed of by the Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation from the court before which it is pending and transfer the same for trial or disposal to the Commercial Division or Commercial Court, as the case may be, having territorial jurisdiction over such suit, and such order of transfer shall be final and binding. 21 Act to have overriding effect -Save as otherwise provided, the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law for the time being in force other than this Act. 8. It is the case on behalf of the appellants, relying upon Section 2(1)(e) of the Act, 1996 that in case of arbitration other than the international commercial arbitration, the principal Civil Court of original jurisdiction in a district only have the jurisdiction to decide the questions forming the subjectmatter of the arbitration, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes. Therefore, it is the case on behalf of the appellants that therefore conferring the jurisdiction upon the Court of learned Civil Judge (Senior Division) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. However, in the absence of a Commercial Division being constituted, the regular Bench of the High Court will hear such applications or appeals arising out of domestic arbitration. If the application or appeal in such domestic arbitration is not within the jurisdiction of the High Court and would ordinarily lie before a Civil Court (not being a High Court) and there is a Commercial Court exercising territorial jurisdiction in respect of such arbitration, then such application or appeal shall be filed in and heard by such Commercial Court. Accordingly, Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 was introduced in Rajya Sabha on April 29, 2015 which was referred to Departmental Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice. While the matter was pending before the Parliamentary Committee, an Ordinance was promulgated by His Excellency the President of India on 23.10.2015, namely, Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015. That thereafter, the Commercial Courts, Commercial Division and Commercial Appellate Division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provided, the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force. 11. Therefore, considering the aforestated provisions of the Act, 2015 and the Objects and Reasons for which the Act, 2015 has been enacted and the Commercial Courts, Commercial Division and Commercial Appellate Division in the High Courts are established for speedy disposal of the commercial disputes including the arbitration disputes, Sections 3 10 of the Act, 2015 shall prevail and all applications or appeals arising out of arbitration under the provisions of Act, 1996, other than international commercial arbitration, shall be filed in and heard and disposed of by the Commercial Courts, exercising the territorial jurisdiction over such arbitration where such commercial courts have been constituted. If the submission on behalf of the appellants that all applications/appeals arising out of arbitration under the provisions of Act, 1996, other than the international commercial arbitration, shall lie before the principal civil Court of a district, in that case, not only the Objects and Reasons of enactment of Act, 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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