§10(1) of Commercial Courts Act 2015 requires an application or an appeal in an international commercial arbitration to be filed before the Commercial Division of a
Facts
Disputes arose between
Decision
- As per §2(e)(ii) of the Act, the word "Court" with respect to an international commercial arbitration means the
High Court exercising its ordinary original jurisdiction and having the jurisdiction to decide the questions forming the subject-matter of the arbitration, and in other cases aHigh Court having jurisdiction to hear appeals from subordinate court rulings. -
Since the
Karnataka High Court does not have original civil jurisdiction, the latter portion of §2(e)(ii) would be triggered, and the roster Judge of theKarnataka High Court , who has jurisdiction to hear appeals from subordinate Court decrees, is able to consider any aspect of the international commercial arbitration. -
§4 of the Commercial Courts Act 2015 does not bar the establishment of a Commercial Division in a
High Court not exercising ordinary original civil jurisdiction and §10(1) mandates an application or an appeal in an international commercial arbitration to be filed before theCommercial Division of the High Court . -
For a
High Court not exercising ordinary original civil jurisdiction, a Commercial Division is required to be established for the purposes of considering applications and appeals arising out of international commercial arbitrations. Furthermore, such Commercial Divisions would have to be constituted comprising of single judges so that in the event of a challenge, it could be filed before theCommercial Appellate Division of the High Court as per §37 of the Act. - Since, the Commercial Divisions were constituted as special divisions, the limitation of the pecuniary jurisdiction for the exercise of powers of the single judge would not apply.
- Reclassification of existing cases in relation to the nature of the proceedings in arbitration - one relating to proceedings under §34 as regards to international arbitration awards and another relating to the orders of the Commercial Divisions challenging orders passed under §9 in relation to international commercial contracts or arbitral proceedings.
- Proceedings in relation to execution of an international commercial arbitral award or interim relief in respect of international commercial arbitration would also have to be dealt with by the Commercial Division comprising of a single judge.
- All pending proceedings which meet the above criteria pending before the Commercial Appellate Division are to be reclassified and transferred to the single judge exercising jurisdiction over the Commercial Division.
Conclusion
A challenge to an international commercial award will lie before a single judge of the Commercial Division of a
* Decision dated
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