Messrs KA.M.GENERAL AVIATION (Pvt.) Ltd. Versus GOVERNOR OF BALUCHISTAN

It is an application under section 20 of the Arbitration Act of 1940. Mr.Ashraf Khan Tanoly submits that this Court has no jurisdictions to entertain the above matter as the proposal for maintenance of the Aircraft of the Government of Baluchistan , was made by the plaintiff and the same was accepted by the defendant at Quetta, where the agreement in question, containing the arbitration clause, was executed and completed. Accordingly the High Court of "'Baluchistan at Quetta alone has the jurisdiction in the case. Reliance is placed on section 20 of the Arbitration Act, which reads as under‑‑

"Section 20. Application to file in Court arbitration agreement.‑‑(1) Where any persons have entered into an arbitration. agreement before the institution of any suit with respect to the subject‑matter of the agreement or any part of it, and where a difference has arisen to which the agreement applies, they or any of them, instead of proceeding under Chapter Il, may apply to a Court having jurisdiction m the matter to which the agreement relates, that the agreement be filed in Court.

(2) The application shall be in writing and shall be numbered and registered as a suit between one or more of the parties interested or claming to be interested as plaintiff or plaintiffs and the remainder as defendant or defendants, if the application has been presented by all the parties or, if otherwise, between the applicant as plaintiff and the other parties as defendants.

(3) On such application being made, the Court shall direct notice thereof to be given to all parties to the agreement other than the applicants, requiring them to show cause within; the time specified in the notice why the agreement should not be filed.

(4) Where no sufficient cause is shown, the Court shall order the agreement to be filed, and shall make an order of reference to the arbitrator appointed b~ the parties, whether in the agreement or otherwise, or, where the parties cannot agree upon an arbitrator, to an arbitrator, appointed by the Court.

(5) Thereafter, the arbitration shall proceed in accordance with, and shall be governed by, the other provisions of this Act so far as they can be made applicable."

2. It is further submitted by the learned counsel that neither cause of action has arisen at Karachi nor the defendant resides, carries on business or works for gain within the jurisdiction of this Court. Hence the filing of the application in this Court is entirely misconceived for want of jurisdiction. Reliance is placed on

Section 20 of the Civil Procedure Code, which reads as under:--

"Section 20. Other suits to be instituted where defendants reside or cause of action arises.‑‑Subject to the limitations, aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction:‑

(a) The defendant, or the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for‑again; or

(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given or the defendants who do not reside, or carry on business, or personally work for gain as aforesaid, acquiesce in such institution; or

(c) the cause of action wholly or in part, arises.

Explanation I.‑ Where a person has a permanent dwelling at one place and also a temporary residence at another place, he shall be deemed to reside at both places in respect of any cause of action arising at the place where he has such temporary residence.

Explanation II‑. A Corporation shall be deemed to carry on business at its sole or principle office in Pakistan, or, in respect of any cause of action arising at any place where it has also subordinate office, at such place."

I find force in the submissions and held that this Court has no jurisdiction to entertain the above suit.

3. The plaint to be returned to the counsel for the plaintiff, to present it to the proper Court which in this case appears to be the High Court of Baluchistan at Quetta.

4. The suit is disposed of accordingly but in the circumstances of the case there will be no order as to costs and the same is not claimed by learned counsel for the defendant.

M.Y.H./K‑88/K Plaint returned.