1971 (1) TMI 109

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....; matter shall be   referred  to arbitration by two Arbitrators under the Arbitration Act of 1940 and such amendments thereto as may be enacted thereafter. 13.   Notwithstanding the place where the work under this contract is to be executed, it is mutually understood and agreed by and between the parties hereto that this Contract shall be deemed to have been entered into by the parties concerned in the City of G Bombay and the Court of law in the City of Bombay alone shall   have   jurisdiction   to  adjudicate thereon." Disputes arose between the parties and the   appellant submitted a petition to the Court of the Subordinate Judge at Varanasi for an order under s.....

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....the arbitration agreement could not be entertained by the Courts at Varanasi. Against the order of the High Court directing that the petition be returned   for presentation to the proper Court, the, appellant has appealed to this Court with special leave. Section 41 of the Arbitration Act 1940 provides in so far as it is relevant : "Subject to the provisions of this Act and of rules made thereunder (a)   the provisions of the Code of Civil procedure,   1908,   shall   apply   to all proceedings before the court, and to all appeals under this Act." The Code of Civil Procedure in its entirety applies to proceedings under the Arbitration Act. The jurisdiction of the Courts un....

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....me of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or (b).................................. (c)   the cause of action, wholly or in part, arises. "Explanation II.-A corporation shall be deemed to carry on business at its sole or principal office in India, or, in respect of any cause of action arising at. any place where it has also a subordinate office, at such place." Plainly by the terms of s. 20(a) read with Explanation II, the respondent Company was liable to be sued at Bombay where it had its principal place of business. The argument of counsel for the appellant that the expression "corporation" in Explanation II includes only   ....