Calcutta High Court Rules Applications And Appeals Under Arbitration Act Can Be Heard By Commercial Division, Even If Filed On Original Side

Calcutta High Court Rules Applications And Appeals Under Arbitration Act Can Be Heard By Commercial Division, Even If Filed On Original Side

Justice Sabyasachi Bhattacharyya of the Calcutta High Court has clarified the jurisdictional issues concerning applications filed under the Arbitration and Conciliation Act, 1996. The Court ruled that even if an application related to a commercial dispute is filed on the Original Side of the High Court, it must be heard and disposed of by the Commercial Division of the High Court.

“The language used in Section 10(2) is “shall”, which is mandatory and implies that even if an application is filed in the original Side of the High Court (without any distinction between Ordinary Original Civil Jurisdiction or Commercial Division), it would suffice if the same is heard and disposed of by the Commercial Division.” Justice Sabyasachi Bhattacharyya observed.

The case involved Siemens Healthcare Private Limited (Petitioner), which sought to recall an order from a co-ordinate Bench of the High Court that had appointed an arbitrator under Section 11 of the Arbitration Act. Siemens argued that the application was filed in the Ordinary Original Civil Jurisdiction rather than the Commercial Division, questioning the Court's jurisdiction to entertain and decide the matter.

Siemens relied on Section 15 of the Commercial Courts Act, 2015, which requires that all suits and applications related to commercial disputes pending in the High Court should be transferred to the Commercial Division. The Petitioner also cited the Commercial Courts Practice Directions, 2021, asserting that the Court should have rejected the application due to lack of jurisdiction as per the Directions.

The High Court noted that Clauses 4 and 9 of the Commercial Courts Practice Directions pertain specifically to civil suits and not to arbitration applications. It highlighted that the Arbitration Act and its applications are distinct from civil suits and that the Practice Directions do not cover arbitration matters.

The Court clarified that Section 10(2) of the 2015 Act specifically addresses arbitration-related applications, mandating their processing by the Commercial Division if such a division is constituted. The High Court therefore upheld that the application under Section 11(5) of the Arbitration Act was correctly handled by the Commercial Division.

The High Court dismissed the application, affirming that even if an arbitration application is filed on the Original Side, it must be heard and decided by the Commercial Division of the High Court, as mandated by Section 10(2) of the 2015 Act.