Manju Gandhi & Anr. vs. M/S Tata Capital Limited & Anr.
Background
The petitioners filed a petition under Section 14 of the Arbitration and Conciliation Act, 1996, seeking termination of the mandate of the sole arbitrator appointed in their dispute with Tata Capital Limited. On perusal of the pleadings, the amount in dispute was found to be less than Rs. 2 crores.
Decision Breakdown
Relying on the precedent National Highways Authority of India v. Third Rock Consultants Pvt. Ltd., the Court held that it lacked pecuniary jurisdiction to entertain the petition since the disputed amount fell below the High Court's jurisdictional threshold. Counsel for the petitioners sought leave to withdraw with liberty to approach the appropriate forum, which the Court granted, and the petition was dismissed as withdrawn.
Lesson Learnt
Before filing any arbitration-related petition in the High Court, check the pecuniary value of the dispute against the Court's jurisdictional threshold: petitions below that threshold will be dismissed for want of jurisdiction rather than decided on merits, even though the litigant retains the right to refile before the correct forum.