Arbitration and Conciliation Act, 1996

Section 42 of the Arbitration Act: Jurisdiction of Court

Section 42 of the Arbitration and Conciliation Act, 1996 determines which court will have exclusive jurisdiction over arbitral proceedings and subsequent applications once an application under Part I of the Act has been made before a competent court.

Section 42: Jurisdiction

Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force, where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court.

Meaning and Effect of Section 42

Section 42 is intended to avoid parallel proceedings before different courts in relation to the same arbitration agreement. Once a competent court is properly approached through an application under Part I of the Act, that court becomes the court having exclusive jurisdiction over the arbitral proceedings and later applications arising out of the same arbitration agreement.

  • The provision begins with a non-obstante clause and is intended to override inconsistent jurisdictional rules.
  • The first application must be an application under Part I of the Arbitration and Conciliation Act, 1996.
  • The court first approached must itself be a competent "Court" within the meaning of the Act.
  • Once Section 42 is attracted, subsequent applications arising from the same arbitration agreement and arbitral proceedings must be made in that court and not in another court.

Definition of "Court" under Section 2(1)(e)

For a domestic arbitration, Section 2(1)(e) defines "Court" as the principal Civil Court of original jurisdiction in a district, and includes the High Court exercising ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject matter of the arbitration if they had been the subject matter of a suit. It does not include a civil court of a grade inferior to such principal Civil Court or a Court of Small Causes.

For an international commercial arbitration, the definition refers to the High Court exercising ordinary original civil jurisdiction where it has jurisdiction over the subject matter, and otherwise the High Court having jurisdiction to hear appeals from decrees of courts subordinate to it.

How the Exclusive Jurisdiction Rule Works

The key requirement is that an application under Part I must first have been made before a court competent to entertain it. Section 42 then channels later applications arising out of the same arbitration agreement and proceedings to that court.

Practical point: Before relying on Section 42, it is important to identify the nature of the earlier application, the court in which it was filed, and whether that court had jurisdiction under the Act. A filing before a court lacking jurisdiction does not automatically determine the proper forum for every later application.

What Is an "Application under this Part"?

Section 42 applies to applications made under Part I of the Act. Depending on the facts, these may include court applications concerning interim measures, appointment-related proceedings where court jurisdiction is invoked under the Act, challenges to awards, or enforcement-related proceedings governed by Part I. The precise application of Section 42 depends on the statutory provision invoked and the jurisdictional framework applicable to that proceeding.

Why Section 42 Matters

The provision promotes consistency, reduces the possibility of competing orders from different courts, and centralizes court supervision of a particular arbitration in one competent forum. It is therefore important when deciding where to file later applications connected with the same arbitration agreement.

Section 2(1)(e) - Definition of Court

Section 2(1)(e) identifies the court competent to exercise jurisdiction under Part I and is therefore central to determining whether Section 42 can be invoked.

Section 9 - Interim Measures by Court

Section 9 permits a party to seek interim measures from a court before, during, or after arbitral proceedings in the circumstances provided by the Act. Where a competent court is approached under Part I, Section 42 may become relevant to subsequent applications.

Section 34 - Application for Setting Aside Arbitral Award

Section 34 provides the statutory remedy for setting aside an arbitral award on the grounds specified in the Act. The proper court must be determined with reference to the Act, including the jurisdictional framework relevant to the arbitration.

Section 42A - Confidentiality of Information

Section 42A requires confidentiality of arbitral proceedings by the arbitrator, arbitral institution and parties, subject to the statutory exception for disclosure of an award where necessary for implementation and enforcement.

Official Statutory Source

The statutory text of Section 42 and the definition of "Court" in Section 2(1)(e) can be verified from the Government of India's India Code version of the Arbitration and Conciliation Act, 1996.