JAYCEE HOUSING PVT. LTD. & ORS. versus REGISTRAR (GENERAL), ORISSA HIGH COURT, CUTTACK & ORS

Citation: [2022] 15 S.C.R. 800 · Decided: 19-10-2022 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Dismissed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2022] 15 S.C.R.
JAYCEE HOUSING PVT. LTD. & ORS.
v.
REGISTRAR (GENERAL), ORISSA HIGH COURT,
CUTTACK & ORS.
(Civil Appeal No. 6876 of 2022)
OCTOBER 19, 2022
[M. R. SHAH AND KRISHNA MURARI, JJ.]
Commercial Courts Act, 2015 – ss.3, 10, 15, 21, 30 –
Arbitration and Conciliation Act, 1996 – s.2(1)(e) – Odisha Civil
Courts Act, 1984 – ss.3, 9 – Whether in exercise of powers u/s.3 of
the Commercial Courts Act, 2015, the State Government can confer
jurisdiction to hear applications u/ss. 9, 14 and 34 of the Arbitration
Act, 1996, upon Commercial Courts which are subordinate to the
rank of the Principal Civil Judge in the District, contrary to the
provisions of s.2(1)(e) of the Arbitration Act – Held: Objects and
Reasons of the 2015 Act is to provide for speedy disposal of the
commercial disputes which includes the arbitration proceedings –
Legislature in its wisdom has specifically conferred the jurisdiction
in respect of arbitration matters as per s.10 of the 2015 Act – When
the 2015 Act was been enacted, more particularly ss.3 & 10, there
was already a provision in s.2(1)(e) of the 1996 Act – As per settled
position of law, it is to be presumed that while enacting the
subsequent law, the legislature is conscious of the provisions of the
Act prior in time and therefore the later Act shall prevail – Even as
per s.15 of the 2015 Act, all suits and applications including
applications under the 1996 Act, relating to a commercial dispute
of specified value shall have to be transferred to the Commercial
Court – Further, as per s.21 of the 2015 Act, the 2015 Act shall
have overriding effect – Thus, ss.3 & 10 of the 2015 Act shall prevail
and all applications or appeals arising out of arbitration under the
provisions of the 1996 Act, other than international commercial
arbitration, shall be filed in and heard and disposed of by the
Commercial Courts, exercising the territorial jurisdiction over such
arbitration where such commercial courts have been constituted –
In the present case, notification issued by the State of Odisha in
consultation with the High Court of Orissa to confer jurisdiction
upon the court of Civil Judge (Senior Division) designated as
[2022] 15 S.C.R. 800
800
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Commercial Court to decide the applications or appeals arising out
of arbitration under the provisions of the 1996 Act, cannot be said
to be illegal and bad in law – It is in consonance with ss.3 & 10 of
the 2015 Act – View taken by the High Court is agreed with.
Commercial Courts Act, 2015 – Object and purpose of –
Discussed.
Dismissing the appeals, the Court
HELD: 1.1 In the year 2003, the Law Commission of India
suo moto took up the issue of constitution of Commercial
Divisions in the High Courts with a view to facilitate fast disposal
of high value commercial disputes. In its 188th Report, the Law
Commission, after carrying out in-depth study of Commercial
Courts in United Kingdom, USA, Singapore etc. recommended
setting up of Commercial Division in each of the High Courts to
expedite commercial cases of high pecuniary value. On the basis
of the recommendations of the Law Commission, a Bill was
introduced in Lok Sabha on 16.12.2009 and passed on 18.12.2009
for setting up commercial divisions in the High Courts. The Bill
was referred to a Select Committee which suggested certain
amendments to the said Bill. The Bill was redrafted and placed
before the Rajya Sabha for its consideration. However, the same
came to be withdrawn by the Government and thereafter the
matter was again referred to the Law Commission for its report.
The Law Commission in its 253rd Report submitted in January,
2015 suggested a new approach for expediting commercial
disputes and therefore proposed a new Bill. Accordingly,
Commercial Courts, Commercial Division and Commercial
Appellate Division of High Courts Bill, 2015 was introduced in
Rajya Sabha on April 29, 2015 which was referred to Departmental
Related Parliamentary Standing Committee on Personnel, Public
Grievances, Law and Justice. While the matter was pending before
the Parliamentary Committee, an Ordinance was promulgated
by His Excellency the President of India on 23.10.2015, namely,
Commercial Courts, Commercial Division and Commercial
Appellate Division of High Courts Ordinance, 2015. That
thereafter, the Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Act, 2015 was
passed by the Parliament, which has been subsequently 

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