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Report No. 176

27. Substitution of new section for section 42

For section 42 of the principal Act, the following sections shall be substituted, namely :-

Proper court for filing subsequent applications

"42. (1) Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force, where with respect to any arbitration agreement any application under this Part has been made to a court in accordance with sub-sections (2) to (5), then all subsequent applications (other than the applications referred to in sub-section (2) of section 31A) arising out of that agreement and the arbitral proceedings (hereafter in this section referred to as the subsequent applications) shall be made to the same court and in no other court.

(2) Where an application is made to a court within the meaning of clause (e) of sub-section (1) of section 2,the subsequent applications shall be made in that court and in no other court.

(3) If in a pending action under section 8 before a Judicial authority, an application is made, seeking reference to arbitration with respect to an agreement, then the subsequent applications shall be made in the following manner, namely:-

(i) where the Judicial authority is a court within the meaning of clause (e) of sub-section (1) of section 2, the subsequent application shall be made in the said court in which the application is made and in no other court;

(ii) where the Judicial authority is a Court which is inferior in grade to the principal Civil Court of original jurisdiction in a district or the court of the principal Judge of the City Civil Court exercising original jurisdiction in a city (hereinafter called the principal courts), as the case may be, the subsequent application shall be made in the said principal Court to which the court where the application is made is subordinate and in no other court;

(iii) where the Judicial authority is a quasi-judicial statutory authority, the subsequent application shall be made in the principal Court mentioned in clause (ii) within whose territorial limits the said authority is situated and in no other court.

(4) If in a legal proceeding under section 8A before any of the courts referred to in that section, an application is made seeking reference to arbitration with respect to an agreement, then the subsequent applications shall be made in the following manner, namely:-

(i) where the application is made in the Supreme Court or in the High Court or in the principal Civil Courts mentioned in clause (ii) of sub-section (3), as the case may be, the subsequent application shall be made in the Court which made the reference and in no other Court;

(ii) where the application is made in a Court of coordinate jurisdiction or inferior in grade to the Principal Civil courts mentioned in clause (ii) of sub-section (3), as the case may be , the subsequent application shall be made in the Principal Court from where the legal proceeding was transferred to such court of coordinate jurisdiction or to which the said court is subordinate, as the case may be, and in no other court.

Explanation 1.- In this sub-section, the expression "legal proceeding" shall have the same meaning as assigned to it in the Explanation to section 8A.

Explanation 2.- For the removal of doubts, it is hereby declared that in the case of arbitral proceedings which have commenced pursuant to a reference made by the Supreme Court or the High Court under section 8A and awards passed pursuant thereto, the references to "court" wherever it is used in this Part shall, except in section 27 and section 31A, be construed as references to the Supreme Court or the High Court, as the case may be.

(5) Where an application seeking reference to arbitration with respect to an agreement is made under section 11, in the Supreme Court or in the High Court, as the case may be, the subsequent applications shall be made in the Court within the meaning of clause (e) of sub-section (1) of section 2 and in no other court.

Scheme for panel of arbitrators: 42A. The Chief Justice of India may prepare a scheme, for constituting a panel of arbitrators to enable either the parties or the Supreme Court or the High Court under section 11 or the judicial authority under section 8 or the courts referred to in section 8A or the parties under section 43A ,as the case may be, to appoint arbitrators from such panel and subject to such conditions as may be specified by the Chief Justice of India in that scheme.

Special provision relating to unregistered partnerships under the Indian Partnership Act, 1932 as amended by the Maharashtra Amendment Act 1984 42B The provisions of the Indian Partnership (Maharashtra Amendment) Act 1984, (Maharashtra Act 29 of 1984) amending section 69 of the Indian Partnership Act, 1932 in its application to the State of Maharashtra, shall not affect the initiation of any proceedings under the Arbitration and Conciliation Act, 1996 for the purpose of enforcement of any right to seek-

(a) the dissolution of a firm;

(b) the settlement of the accounts of a dissolved firm; or

(c) the realization of the property of a dissolved firm."



The Arbitration and Conciliation (Amendment) Bill, 2001 Back




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