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2019 DIGILAW 155 (KAR)

CHANDADEVI W/O UMACHAND JAIN v. MPHISIS LTD, MPHISIS ANPH COMPANY LTD.

2019-01-11

P.B.BAJANTHRI

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JUDGMENT P.B. Bajanthri, J. In the instant petition, the petitioner has sought for the following reliefs. (A) To appoint any sole Arbitrator to arbitrate the dispute in respect of the transactions entered between them by virtue of Lease Deed dated 29th April 2013 vide Annexure-A, in the interest of justice and equity; (B) To Grant any other relief/s the petitioner is found entitled to. 2. Learned counsel for the petitioner submitted that this Court has jurisdiction on the score that question of competent Court in Bengaluru which is stated in clause 20 of the Lease Deed, would operate only as and when arbitrator was appointed and thereafter with reference to any award passed. 3. Learned counsel for the petitioner in support of jurisdiction of this Court relied on a reported decision in Abdul Wajid Vs. State of Karnataka, 2013 12 LAWS(KAR) 265 to the extent that this Court, i.e., Dharwad Bench, has a permanent status. Therefore, the petitioner can avail remedy before any of the High Courts, like, Bengaluru, Dharwad and Kalaburagi. 4. Per contra learned counsel for the respondent vehemently contended that in clause 20 of the Lease Deed it is specific that dispute resolution would be subject to the conditions stated therein and one of the conditions is that, a competent Court in Bengaluru shall have exclusive jurisdiction to deal with any dispute or claims between the parties arising out of the lease deed. When specific clause has been incorporated in the Lease Deed relating to jurisdiction of the Court, the present petition cannot be entertained by this Court (Dharwad Bench). 5. Heard learned counsel for the parties. 6. Core issue in the present petition is, whether petition is maintainable before this Court or not in respect of territorial jurisdiction. 7. Before appraising the contention of the petitioner it is relevant to extract clause 20 of the Lease Deed to dispute a resolution among the petitioner and the respondent which reads as under: “20. DISPUTE RESOLUTION: Any dispute arising out of or relating to this Deed, or any breach or alleged breach thereof, except for fraud, misappropriation etc. shall be finally settled by an arbitral tribunal appointed by mutual consent of the parties and in accordance with the provisions of the Arbitration and Conciliation Act, 1996. The arbitration proceedings shall be held in Bangalore and the language shall be in English. shall be finally settled by an arbitral tribunal appointed by mutual consent of the parties and in accordance with the provisions of the Arbitration and Conciliation Act, 1996. The arbitration proceedings shall be held in Bangalore and the language shall be in English. Subject to the above, competent courts in Bangalore shall have exclusive jurisdiction to deal with any disputes or claims between the Parties arising out of this Deed. The recourse under arbitration provision shall not be relevant for acts done or omitted to be done through the negligence or misconduct or fraud or misappropriation of or his/her/its agents, action initiated/taken by statutory authorities with respect to the Premises as a result of which the Lessee's peaceful possession.” 8. Perusal of the aforesaid clause it is crystal clear that any dispute or claim between the parties arising out of lease deed, the competent Court would be in Bengaluru. Mandatory clause has been incorporated like “Competent Court in Bengaluru shall have exclusive jurisdiction to deal with any disputes or claims between the parties arising this deed.” 9. Having regard to the aforesaid clause the contention of the petitioner that question of approaching the Court in Bengaluru would arise only as and when arbitrator passed an award, is not appreciable. Further, reliance on Abdul Wajid case stated supra, is distinguishable for the reasons that both the petitioners and respondent were bound by lease deed dated 29.04.2013 in respect of disputed resolutions, if any. 10. Clause 20 is binding on both the parties in respect of jurisdiction like Courts in Bengaluru. In fact, mandatory clause has been imposed to the extent of Competent Courts in Bengaluru shall have exclusive jurisdiction to deal with any dispute or claims among the parties arising out of the lease deed dated 29.04.2013. Hence Abdul Wajid case do not assist the petitioner. 11. In view of these facts and circumstances, the petition stands dismissed reserving liberty to the petitioner to approach appropriate forum in accordance with Clause 20 of the Lease deed dated 29.04.2013. Registry is directed to return the original lease deed dated 29.04.2013 by keeping a Xerox copy in the file.