Plea Of Territorial Jurisdiction Or Lack Thereof Cannot Be Entertained In A Transfer Petition U/Sec 25 CPC : Supreme Court

The Supreme Court observed that its jurisdiction under Section 25 of CPC cannot be extended to determine the question of territorial jurisdiction of the proceedings.

The plea of jurisdiction or the lack of it can be prompted before the Court in which the proceedings are pending, Justice JK Maheshwari observed.

In this case, Neilan International Co. Ltd. filed a transfer petition under Section 25 CPC, seeking the transfer of petition filed by Powerica Limited under Section 34 of the Arbitration and Conciliation Act, 1996  before the LXXII Addl. City Civil and Sessions Judge (Commercial Court) at Bengaluru, Karnataka to the Bombay High Court or any other court of competent jurisdiction in Mumbai, Maharashtra, in light of Petitioner having filed Arbitration Petition before the Bombay High Court under Sections 47 and 48 of the Act for the enforcement of arbitral award passed by Arbitral Tribunal in ICC International Court of Arbitration Case No.19933/TO in London under the ICC Rules 2012.

According to the petitioner, Bangalore Principal City Civil Court as it has no jurisdiction to entertain an award passed in the International Commercial Arbitration. This petition was opposed by the respondent contending that the plea regarding the lack of jurisdiction of the Bengaluru Court to entertain the petition cannot be taken in a transfer petition. Reliance was placed on an order passed in 'Naivedya Associates v. Kirti Nutrients Limited'

The bench therefore considered the primary issue whether the plea of territorial jurisdiction or the lack thereof can be entertained by this Court in its jurisdiction under Section 25 of CPC.

"Apropos, it is no longer res integra that there is limited scope vested in this Court while exercising its jurisdiction under Section 25 of CPC and the same cannot be extended to determine the question of territorial jurisdiction of the proceedings before it as the plea of jurisdiction or the lack of it can be prompted before the Court in which the proceedings are pending.", the court observed while it dismissed the Transfer petition.

Case details

Neilan International Co. Ltd. vs Powerica Limited 2022 LiveLaw (SC) 566 | Tr Petn 32/2020 | 6 July 2022

Coram: Justice JK Maheshwari

Headnotes

Code of Civil Procedure, 1908 ; Section 25 - Jurisdiction under Section 25 cannot be extended to determine the question of territorial jurisdiction of the proceedings- The plea of jurisdiction or the lack of it can be prompted before the Court in which the proceedings are pending - Referred to Naivedya Associates v. Kirti Nutrients Limited LL 2021 SC 356. (Para 4-5)

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