In Arb. Case No. 222 of 2021-PUNJ HC- P&H HC allows petition u/s 11 of Arbitration & Conciliation Act for appointment of arbitrator, says issue of arbitrability can be dealt with in arbitration proceedings
Justice Avneesh Jhingan [03-03-2023]

Read Order: TRIDENT LTD. PETITIONER VS GURULAXMI COTTEX PVT. LTD. 

Mansimran Kaur

Chandigarh, March 4, 2023: The contention as to whether the issue is arbitrable or not can be dealt with in arbitration proceedings by the arbitral tribunal, the Punjab and Haryana High Court has observed while allowing a petition under Section 11 of the Arbitration and Conciliation Act, 1996 

Dealing with the petition for appointment of an arbitrator, Justice Avneesh Jhinghan stated that the arbitrator may decide the venue of the arbitration with the consent of both the parties. 

The petitioner placed a purchase order on the respondent- company. The clause in the general terms and conditions of the purchase order provided for dispute resolution through an arbitration mechanism and that the jurisdiction would be exclusively of the court at Barnala. There was a dispute between the parties. 

The petitioner raised claim vide notice dated January 1, 2021 , thereafter, notice under Section 21 of the Act was issued on January 25, 2021  The needful having not been done,  hence, the present petition was filed. 

Counsel for the respondent relied upon the decision of the Supreme Court in Ravi Ranjan Developers Pvt. Ltd. v. Adiya Kumar Chatterjee, to submit that this court had no jurisdiction to entertain the petition under Section 11 of the Act. He further submitted that there was no clause for dispute resolution. 

After considering the submissions, the Court noted that the contention raised by the  senior counsel for the respondent with regard to jurisdiction of this court lacked  merit. The Supreme Court in Ravi Ranjan Developers Pvt. Ltd.'s (supra) was dealing with a clause where it was agreed between the parties that venue of the arbitral tribunal would be at Calcutta, whereas in the present case, the clause is specific that exclusive jurisdiction would be of courts at Barnala,the Court noted. 

Further reliance was placed on the judgment of the Supreme Court in  BGS SGS Soma JV v. NHPC Ltd.

“The contention as to whether the issue is arbitrable or not can be dealt with in arbitration proceedings by the arbitral tribunal”, the Court observed. 

Accordingly, the present petition was disposed of by stating that the arbitrator may decide the venue of the arbitration with the consent of both the parties.