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abhijit (legal )     17 April 2010

arbitration matter.

Hi,

If a clause of arbitration is mentioned as 'Dispute resolution mechnism' in an agreement; and it is also mentioned that arbitration shalll be binding;  then-

1. Do we also need to mention a clause of jurisdiction if any party wants to file a case with civil court?

 2. can a case be simultaneously made with the civil court or /consumer court ?

3. Do civil courts have jurisdiction in such cases to interfere in the matter ?

thanks



Learning

 6 Replies

R.R. KRISHNAA (Legal Manager)     17 April 2010

If there is arbitration clause there need not be a clause for civil courts jurisdiction.  If a clause conferring jurisdiction of civil courts in case of disputes is added in addition to arbitration clause it will definitely entitle powers of civil courts over the dispute and arbitration clause will loose significance.

 

If the agreement has only arbitration clause, then a case cannot be filed before civil court.  But a complaint can be filed before consumer court as pendency of arbitration is not a bar for initiating consumer forum proceedings.

 

Civil courts jurisdiction in respect of matters covered under the arbitration clause is very limited in scope and usually civil courts will not interfere in disputes which are covered under arbitration clause.  But disputes beyond the purview of arbitration clause or not covered under the arbitration clause can certainly be entertained by civil courts.

N RAMESH. (Advocate Chennai. Formerly Civil Judge. Mobile.09444261613)     18 April 2010

I agree with Mr.Krishna

Vineet (Director)     15 May 2010

Once an arbitration clause has been made in the agreement, the only dispute resolution forum available is arbitration and courts do not interfere in such matters and have limited role.

 

The court has been defined u/s 2(1)(e) of Arbitration Act and the Consumer Court does not have any jurisdiction at all once an agreement has been subjected to arbitration clause. There may be a situation that multiple courts (which are mostly principal sessions court of district having original civil jurisdiction barring high courts of Bombay, Calcutta, Madras, Delhi and J&K) may have jurisdiction in a particular action due to cause of action arising in multiple jurisdictions, there is nothing wrong to limit jurisdiction to a particular court in the areement itself as forum convenience. Otherwise the court in which first application is filed under the Act, will have exclusive jurisdiction over the matter and jurisdiction of other courts is excluded by virtue of section 42 of the Act.

Smita_L01042008 (student)     22 May 2010

dear Mr. Krisha, kindly guide for the first two points mentioned by you. in case the agreement mentioned about jurisdiction of civil court, then the consumer forum the barred to look into the matter. is there any judgement supporting to this?

Prem Krishanan ( Legal)     25 May 2010

I'm very much in agreement with Mr Krishnaa.


naveen (engineer)     11 November 2013

Hello,

I have filed a case against builder in consumer court, builder gas demanded extra money as cost escalation which is not mentioned in agreement.

Now builder has initiated arbitration even though it is not in scope of agreement.

My lawyer has mentioned that both consumer court and arbitration will continue in parallel.

What does that mean? If both give different verdicts, how will that solve the situation.

Moreover, actually it is not in scope of arbitration but since arbitrator is appointed by builder so he will anyway hand in glove with builder. Please advise.


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