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        Companies Law

        1993 (10) TMI 361 - SC - Companies Law

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        Territorial jurisdiction for foreign award filing may rest on judgment-debtor money within the court's limits Section 5(1) of the Foreign Awards (Recognition and Enforcement) Act, 1961 requires the filing court to have jurisdiction over the subject-matter of the ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Territorial jurisdiction for foreign award filing may rest on judgment-debtor money within the court's limits

                              Section 5(1) of the Foreign Awards (Recognition and Enforcement) Act, 1961 requires the filing court to have jurisdiction over the subject-matter of the award. In a money award, territorial jurisdiction may be made out if money belonging to the judgment-debtor is shown to be within the court's limits. Where the original pleading denied the existence of such assets but later material suggested that sale proceeds payable to the award-creditors were held by a third party, the proper course is to allow amendment of the jurisdictional averment and then test the amended claim. If proved, the court may take the award on file and proceed under the Act.




                              Issues: Whether the court at Bhavnagar had jurisdiction under Section 5(1) of the Foreign Awards (Recognition and Enforcement) Act, 1961 to entertain the application for filing the foreign award on the basis that money belonging to the award-debtors was held within its territorial jurisdiction, and whether the jurisdictional averment could be amended to reflect that fact.

                              Analysis: Section 5(1) permits an interested person to apply to a court having jurisdiction over the subject-matter of the award for filing of the award. In a money award, the subject-matter may be treated as money, and jurisdiction may exist if money belonging to the judgment-debtors is shown to be within the court's territorial limits. The initial petition proceeded on the footing that no such assets existed, but later events indicated that the third respondent held an amount of Rs. 6,40,000 representing part of the sale proceeds payable to the first and second respondents. Since the exact location of those monies was not established, the appropriate course was to permit an amendment of the jurisdictional averment and then inquire whether the amended assertion was correct. If the amended averment were proved, the court would have jurisdiction to take the award on file and proceed under the Act.

                              Conclusion: The court held that jurisdiction was not finally negatived and that the appellant could seek amendment to show that money of the award-debtors lay within the court's jurisdiction; if established, the Bhavnagar court would be competent to act under Section 5(1) of the Act.

                              Ratio Decidendi: For filing a foreign award under Section 5(1), jurisdiction depends on whether the court has territorial control over the subject-matter of the award, and in a monetary award this may be satisfied by showing that the judgment-debtor's money lies within the court's jurisdiction.


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                              ActsIncome Tax
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