2003 CLC 31 (BOM)

Bombay High Court

Hon'ble Judge(s): S. A. Bobde , J

Arbitration and Conciliation Act (26 of 1996) , S.85, S.31(4), S.42, S.2(e)— Special Court (Trial of Offences Relating to Transactions in Securities) Act (27 of 1992) , S.3, S.9B— Jurisdiction - 'Notified person' entering into arbitration agreement - Claim arising out of such agreement - Court as defined under Arbitration Act, 1940 have no jurisdiction to entertain arbitration proceeding - Position not changed even after enforcement of new Arbitration Act. The Arbitration and Conciliation Act, 1996 has completely replaced the Arbitration Act of 1940. The intention of S. 9-B of the Special Courts Act was to confer the powers of a Court under the 1940 Act on the Special Courts. On a repeal and re-enactment of the 1996 Act, the reference in S. 9-B to a Court under the Arbitration Act, 1940 must be construed as a reference to the Court under 1996 Act. Therefore, where a person has been notified under S. 3(2) of the Special Courts Act and he is said to have entered into an arbitration agreement a Court as defined by the Arbitration and Conciliation Act, 1996 does not have jurisdiction to entertain arbitration proceedings arising out of an arbitration agreement entered into by such a notified person. Reading S. 2(e) of 1996 Act as part of S. 42 of the Act of 1996, it is clear that S. 42 would operate when 'the application under this p....