Designated Commercial Courts can hear matters under Arbitration Act-Supreme Court of India

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Arbitration-Jurisdiction of the Courts

The Supreme Court observed that Commercial Courts which are subordinate to the rank of the Principal Civil Judge in the District has jurisdiction to hear applications/appeals under Arbitration and Conciliation Act,1996.

The court upheld the Orissa High Court judgment and the notification issued by the State of Odisha to confer jurisdiction upon the court of learned Civil Judge (Senior Division) designated as Commercial Court to decide the applications or appeals arising out of arbitration.

Before the High Court, the petitioners contended 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.

Arbitration and Conciliation Act, 1996– Sections 2(1)(e), 9,14 and 34 – Commercial Courts Act, 2015 ; Section 3 – State Government can confer jurisdiction to hear applications 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 – 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.

Jaycee Housing Pvt. Ltd. Vs Registrar (General), Orissa High Court

Download Judgement below:

SC-Judgement-Copy-Jaycee-Housing-Vs-Registrar-General-Orissa-HCDownload

Source: Supreme Court Cases (SCC Online)

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