{"id":201484,"date":"1999-02-17T00:00:00","date_gmt":"1999-02-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-vs-ms-evdomen-corporation-on-17-february-1999"},"modified":"2016-01-26T21:58:34","modified_gmt":"2016-01-26T16:28:34","slug":"food-corporation-of-india-vs-ms-evdomen-corporation-on-17-february-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-vs-ms-evdomen-corporation-on-17-february-1999","title":{"rendered":"Food Corporation Of India vs M\/S. Evdomen Corporation on 17 February, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Food Corporation Of India vs M\/S. Evdomen Corporation on 17 February, 1999<\/div>\n<div class=\"doc_author\">Author: M S Manohar<\/div>\n<div class=\"doc_bench\">Bench: Sujata V. Manohar, R.C.Lahoti.<\/div>\n<pre>           PETITIONER:\nFOOD CORPORATION OF INDIA\n\n\tVs.\n\nRESPONDENT:\nM\/S. EVDOMEN CORPORATION\n\nDATE OF JUDGMENT:\t17\/02\/1999\n\nBENCH:\nSujata V.  Manohar, R.C.Lahoti.\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>Mrs.  Stljata V.  Manohar, J.\n<\/p>\n<p>\tLeave granted,<\/p>\n<p>\tThe appellant-Food Corporation of India entered into<br \/>\na charter party agreement with the respondent for  transport<br \/>\nof rice\t from  Bangkok\tto  Paradeep  Port  in\tOrissa.\t The<br \/>\ncharter party was signed at Delhi where the principal office<br \/>\nof the appellant is situated, on 30.9.1988.\n<\/p>\n<p>\tUnder the charter party agreement cargo was  brought<br \/>\nand discharged\tat Paradeep Port in the State of Orissa.  In<br \/>\nrespect of the cargo so discharged there were  disputes\t and<br \/>\ndifferences   between  the  parties  regarding\tfreight\t and<br \/>\ndemurrage charges.    Since  the  charter  party   agreement<br \/>\ncontained  an  arbitration  clause; the parties referred the<br \/>\ndisputes to arbitration.   The\tarbitration  took  place  in<br \/>\nBombay.\t  Arbitrators  gave  their award and filed it in the<br \/>\nBombay High Court.\n<\/p>\n<p>\tIt is contended before us by the appellant that\t the<br \/>\nBombay\tHigh  Court had no jurisdiction to take the award on<br \/>\nfile or to issue any process in connection  with  it.\t The<br \/>\nHigh   Court  in  the  impugned\t judgment,  has\t upheld\t the<br \/>\njurisdiction of the Bombay High Court on the ground that the<br \/>\nappellant who is in the position of a defendant, has one  of<br \/>\nits places of business at Bombay.\n<\/p>\n<p>\tUnder  Section\t2(c)  of  the Arbitration Act, 1940.<br \/>\n&#8220;Court&#8221; means a Civil Court having  jurisdiction  to  decide<br \/>\nthe questions forming the subject matter of the reference if<br \/>\nthe same  had  been  the  subject  matter  of a suit.  Under<br \/>\nSection 31(1) of the Arbitration Act, 1940 an award  may  be<br \/>\nfiled  in  any\tcourt  having  jurisdiction in the matter to<br \/>\nwhich the reference relates.\n<\/p>\n<p>\tOrdinarily,   the   phrase   &#8220;Civil   Court   having<br \/>\njurisdiction  to  decide&#8221; in Section 2(c) of the Arbitration<br \/>\nAct, 1940 would refer to a court having\t jurisdiction  under<br \/>\nSection 20  of\tthe  Civil Procedure Code.  Section 20(a) of<br \/>\nthe  Civil  Procedure  Code  provides,\t &#8220;Subject   to\t the<br \/>\nlimitations  aforesaid,\t every suit shall be instituted in a<br \/>\ncourt within the local limits of whose jurisdiction (a)\t the<br \/>\ndefendant  or  each  of\t the defendants where there are more<br \/>\nthan one, at the time  of  the\tcommencement  of  the  suit,<br \/>\nactually  and  voluntarily resides or carries on business or<br \/>\npersonally works for gain&#8230;.(c) the cause of action  wholly<br \/>\nor in part arises.&#8221; In the present case no part of the cause<br \/>\nof  action  has arisen within the jurisdiction of the Bombay<br \/>\nHigh Court.  We have,  therefore,  to  see  whether  Section<br \/>\n20(a)  would confer jurisdiction on Bombay High Court as has<br \/>\nbeen held in the impugned judgment.  Section 20(a) has to be<br \/>\nread along with the explanation to Section 20 which provides<br \/>\nas follows :-\n<\/p>\n<p>\t\t&#8220;Explanation:\tA  Corporation\tshall  be<br \/>\n\tdeemed to carry on business at its sole or<br \/>\n\tprincipal office in India or in respect of<br \/>\n\tany cause of action arisen  at\tany  place<br \/>\n\twhere  it has also a subordinate office at<br \/>\n\tsuch place.&#8221;\n<\/p>\n<p>In  view  of this Explanation the appellant under Section 20<br \/>\nis deemed to carry on business at its  principal  office  in<br \/>\nIndia.\t In respect of any cause of action which arises at a<br \/>\nplace where it has its subordinate office, the court at that<br \/>\nplace would  also  have\t jurisdiction.\t  In  view  of\tthis<br \/>\nexplanation,   the   Bombay   High   Court  would  not\thave<br \/>\njurisdiction under Section 20 of the Civil Procedure Code.\n<\/p>\n<p>\tIn this connection our attention was also drawn to a<br \/>\ndecision of this Court in <a href=\"\/doc\/1548537\/\">Hakam Singh v.  M\/s Gammon (India)<br \/>\nLtd.<\/a>  (1971 (3) SCR 314), where this  Court  said  that\t the<br \/>\nCode  of  Civil\t Procedure  in\tits  entirety  apples to the<br \/>\nproceedings under the Arbitration Act by virtue\t of  Section<br \/>\n41 of the Arbitration Act.  The jurisdiction of the court to<br \/>\nentertain   a  proceeding  in  connection  with\t arbitration<br \/>\nincluding taking on file an award, is  accordingly  governed<br \/>\nby the provisions of the Code of Civil Procedure.\n<\/p>\n<p>\tHowever,  under\t Section  120 of the Civil Procedure<br \/>\nCode, Sections 16.  17 and 20 of the Civil Procedure code do<br \/>\nnot apply to a High Court in the exercise  of  its  original<br \/>\ncivil jurisdiction.    Jurisdiction of the Bombay High Court<br \/>\nto entertain  a\t suit  under  its  ordinary  original  civil<br \/>\njurisdiction  is  determined  by  Clause  12  of the Letters<br \/>\nPatent of the Bombay High Court.  Under\t Clause\t 12  of\t the<br \/>\nLetters\t Patent\t a place where the defendant, or each of the<br \/>\ndefendants  where  there  are  more   than   one,   at\t the<br \/>\ncommencement of the suit, carry on business would be a place<br \/>\nwhere the  court  would have jurisdiction.  Therefore, under<br \/>\nClause 12 of the Letters Patent of the\tBombay\tHigh  Court,<br \/>\nthe  Bombay  High  Court  would\t have  jurisdiction over the<br \/>\nsubject matter of the dispute in the  present  case  because<br \/>\nthe appellant does carry on business in Bombay.\n<\/p>\n<p>\tIn the present case the Arbitrators gave their award<br \/>\non 29,11.1994.\t  The  appellant  received a notice from the<br \/>\nArbitrators of the  signing  of\t the  award  on\t 15.12.1994.<br \/>\nThereafter  on\t13i1.1995  the\tappellant  filed Arbitration<br \/>\nMisc.  Case No.\t 13 of 1895 before the Civil  Judge,  Senior<br \/>\nDivision,   Jagatsinghpur,   under   Section  14(2)  of\t the<br \/>\nArbitration Act, 1940 for directing the Arbitrators to\tfile<br \/>\nthe  original award and all relevant records in court and to<br \/>\npermit the appellant to file objections under Section 30  of<br \/>\nthe Arbitration\t  Act  against\tthe  said  award.    In\t the<br \/>\nmeanwhile  on  1,2.1995\t the  award  was  filed\t in  Bombay.<br \/>\nThereafter the appellant amended the application in Case No.<br \/>\n13\/95  to  ask for transfer of the award from Bombay to the.<br \/>\ncourt at Jagatsinghpur, Application being Misc.\t Case  13\/95<br \/>\nwas rejected by the Court at Jagatsinghpur.  It directed the<br \/>\nappellant to  file its objections in Bombay.  We do not know<br \/>\nwhether anything further is pending in connection with\tthat<br \/>\napplication.   The appellant did not rely upon Section 31(4)<br \/>\nof the Arbitration Act either before the Bombay\t High  Court<br \/>\nor before  us.\t The above facts were known to the appellant<br \/>\nand were brought to the notice of the High Court.   Perhaps,<br \/>\nlooking to the findings of the Civil Judge, Senior Division,<br \/>\nJagatsinghpur,\tregarding  lack of jurisdiction in his court<br \/>\nto decide claims for demurrage etc., Section 31(4)  has\t not<br \/>\nbeen pressed into service.\n<\/p>\n<p>\tWe, therefore, do not find it necessary to set aside<br \/>\nthe judgment of the Bombay High Court.\n<\/p>\n<p>\tThe appeal is, therefore, dismissed with no order as<br \/>\nto costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Food Corporation Of India vs M\/S. Evdomen Corporation on 17 February, 1999 Author: M S Manohar Bench: Sujata V. Manohar, R.C.Lahoti. PETITIONER: FOOD CORPORATION OF INDIA Vs. RESPONDENT: M\/S. EVDOMEN CORPORATION DATE OF JUDGMENT: 17\/02\/1999 BENCH: Sujata V. Manohar, R.C.Lahoti. JUDGMENT: Mrs. Stljata V. Manohar, J. Leave granted, The appellant-Food Corporation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-201484","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Food Corporation Of India vs M\/S. 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