2015 AIR CC 231 (HYD) ::(2014) 5 AndhLD 424

Hyderabad High Court

Hon'ble Judge(s): Kalyan Jyoti Sengupta, C.J. , J

( A ) Civil Procedure Code (5 of 1908) S. 20 — Arbitration and Conciliation Act (26 of 1996), S. 11 (5), (6) — Appointment of Arbitrator — Territorial jurisdiction — Agreement to develop property situated in Bangalore — Arbitration clause in agreement provided that seat of arbitral tribunal shall be at Hyderabad — However no cause of action arose at Hyderabad — Performance/non-performance of development agreement was related to land located at Bangalore — Court at Hyderabad would have territorial jurisdiction to appoint arbitrator.The parties entered into a development agreement for developing a property located at Bangalore. Arbitration clause in agreement provided for seat of arbitral tribunal at Hyderabad. There being dispute between parties, respondent filed civil suit against applicant in court of Bangalore. The applicant pleaded that ignoring arbitration agreement, respondent has filed suit, where it is specifically mentioned that in case of any dispute, matter must be referred to arbitration. The land in question was situated within Bangalore and agreement was registered and executed in Bangalore. Therefore, performance, non-performance, breach would certainly take place within territory of Bangalore. Court at Hydera-bad would have no territorial jurisdiction to appoint an arbitrator. 2012 AIR SCW 5950, Disting. (Paras13).....