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1974 Supreme(SC) 438

V.R.KRISHNA IYER, A.C.GUPTA, P.K.GOSWAMI
Food Corporation Of India – Appellant
Versus
Thakur Shipping Company – Respondent


Judgment

GUPTA, J. :- In these two appeals by special leave the appellant, Food Corporation of India, challenges the correctness of two orders passed by the High Court of Madras staying under Section 34 of the Arbitration Act two suits for damages it had instituted in the Court of the Subordinate Judge at Tuticorin. The question for consideration is whether the first respondent in each of these two appeals, who is the first defendant in the respective suits out of which these appeals arise, was "ready and willing to do all things necessary to the proper conduct of the arbitration" as required by Section 34 This is really a question of fact and the trial court found that in neither case the defendant who applied for stay satisfied this test. On appeal, the High Court stayed the suits reversing the decision of the trial court by two separate orders passed on the same day. Whether the High Court acted rightly would depend upon the facts and circumstances of the two cases which are essentially similar. It is necessary therefore to state briefly the facts leading to the institution of the suits.

2. The appellant Food Corporation of India, referred to hereinafter as the Corporation, charte














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