The High Court (HC) rules that the provisions of the Arbitration Act-2001, except those under sections 45, 46 and 47, are not applicable to any arbitration that sits overseas.
A larger bench of Justice Sheikh Hassan Arif, Justice Md Ashraful Kamal and Justice Ahmed Sohel delivered the verdict after hearing a civil appeal petition of Accom Travels and Tours Ltd on Wednesday.
Accom Travels has travel agency and air freight cargo handling business in Bangladesh.
According to the plea, Accom and Oman Air entered into a GSA agreement on 01 September 2008, followed by a GSSA agreement which were renewed subsequently in 2013. However, a dispute arose between the parties. Thus, Oman Air terminated both the deals.
Later, Accom issued a legal notice to Oman Air claiming a certain amount as against a huge loss of business and profit, but got no positive response. Accordingly, it filed a suit with the First Court of Joint District Judge, Dhaka, against Oman Air for realisation of damages of Tk 780 million.
Hearing both parties, it dismissed the entire suit on the ground that the suit was not maintainable. Being aggrieved by such dismissal of the suit followed by a decree, Accom preferred this appeal. The Chief Justice constituted a larger bench to hear the case as it involved legal issues.
The HC says, "In view of the provisions under sections 3(1) and 3(2) of the Arbitration Act-2001, the provisions of the said Act, except the provisions under sections 45, 46 and 47, are not applicable in respect of any arbitration where the seat of such arbitration is in a foreign country."
"Thus, the provisions under sections 7, 7A and 10 cannot be invoked in such a case except that the power of the Court concerned to take interim measures under section 7A of the said Act may only be invoked at the stage of enforcement of foreign arbitral award."
Accordingly, the impugned judgment and decree passed the First Court of Joint District Judge, Dhaka, in the money suit are hereby set aside, reads the verdict.
In an observation, the court said, "It appears that, by the agreements, the parties have not only agreed to resolve their disputes through arbitration in Oman, they have also agreed that their agreements shall be governed and construed in accordance with the law of Oman and that the Court in Oman shall have exclusive jurisdiction."
bikashju@gmail.com
