Arbitration award jurisdiction under Letters Patent Clause 12 governed filing in Bombay High Court despite Section 20 CPC limits

In arbitration proceedings, the court competent to take an award on file is the civil court having jurisdiction over the subject matter of the reference under the applicable jurisdictional rule. Section 31(1) of the Arbitration Act, 1940 requires filing in such a court, and ordinary civil jurisdiction would ordinarily follow Section 20 CPC where part of the cause of action arises. For a High Court exercising original civil jurisdiction, however, Section 120 excludes Sections 16, 17 and 20 CPC, so jurisdiction must be tested under Clause 12 of the Letters Patent. On that basis, the appellant's carrying on business in Bombay was sufficient to confer jurisdiction on the Bombay High Court.

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Issues: Whether the Bombay High Court had jurisdiction to take the arbitration award on file and entertain proceedings in relation to the award, having regard to the place where the charter party was signed, where the cargo was discharged, and where the appellant carried on business.

Analysis: The expression "Court" in Section 2(c) of the Arbitration Act, 1940 is to be understood as a civil court competent to decide the subject matter of the reference, and Section 31(1) requires filing of the award in a court having jurisdiction in the matter to which the reference relates. For ordinary civil jurisdiction, Section 20(a) of the Civil Procedure Code would apply, and no part of the cause of action had arisen within Bombay. The Explanation to Section 20 did not confer jurisdiction merely because the appellant was deemed to carry on business at its principal office in India. Section 120 excluded Sections 16, 17 and 20 from the original civil jurisdiction of a High Court, so the Bombay High Court's jurisdiction had to be tested under Clause 12 of the Letters Patent. Under Clause 12, the fact that the appellant carried on business in Bombay was sufficient to found jurisdiction.

Conclusion: The Bombay High Court had jurisdiction to entertain the award proceedings, and the challenge to its jurisdiction failed.

Ratio Decidendi: In arbitration matters, the court competent to take an award on file is the court having jurisdiction under the applicable civil jurisdictional rule, and for a High Court exercising original civil jurisdiction, Clause 12 of its Letters Patent governs jurisdiction notwithstanding Section 20 of the Civil Procedure Code.

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