A valid arbitration agreement compels parties to arbitrate disputes arising from it, regardless of allegations of fraud if they pertain to internal matters, reinforcing arbitration's role in resolving commercial disputes.

ORDER :

(J.B. Pardiwala, J.)

1. This petition arises from the judgment and order passed by the High Court of Judicature at Madras dated 09.01.2025 in C.R.P. No. 1272 of 2024 by which the Civil Revision Petition filed by the petitioners herein (original plaintiffs) came to be rejected thereby affirming the order passed by the Commercial Court (District Judge Cadre), Coimbatore allowing application filed by the respondents herein (original defendants) under Section 8 of the Arbitration and Conciliation Act, 1996 (for short, ‘the Act of 1996’) and referring the parties to arbitration.

2. It appears from the materials on record that the petitioners herein instituted a suit being C.O.S. No. 147 of 2023 in the Commercial Court seeking following reliefs:-

“(i) Permanent injunction restraining Defendant No. 1, by himself, partners, business successors, servants, agents, representatives and every other person claiming through Defendant No. 1 to offer, sell, open any other shop with the same name or for any other purpose using the plaintiff No. 1 mark in Application No. 3440505 of “SRI ANGANNAN BIRIYANI HOTEL” or “ABM SRI ANGANNAN HOTEL” or any other name format signifying the term ANGANNAN.

(ii) Permanent injunction restraining the Defendant No. 1 by himself, partners, successors in business, servants, agents, representatives and every other person claiming through the Defendant No. 1 from using or associating himself with the mark in Application No. 3440505 of “SRI ANGANNAN BIRIYANI HOTEL” OR “ABH SRI ANGANNAN HOTEL” or any other term ANGANAN in any kind of social media platform or any other media platform until the court passes further orders.

(iii) to pay for damages of Rs. 20,00,000 /- (Rupees Twenty Lakhs only) for the loss that the Plaintiffs had incurred due to the use of the Trademark in Application No. 6440505 of “SRI ANGANNAN BIRIYANI HOTEL” and pass any other order that this Hon'ble Court may deem fit and thus render justice.

(iv) For costs of the suit.

(v) and pass such further or other orders as this Hon'ble Court may deem fit and proper in the circumstances of the case and thus render Justice.”

3. The defendants appeared before the Commercial Court and preferred application under Section 8 of the Arbitration and Conciliation (Amendment) Act, 2019 stating as under:-

“APPLICATION FILED UNDER SECTION 8 OF THE ARBITRATION AND CONCILIATION AMENDMENT ACT, 2019

I. Petitioner/1st Defendant

N. J. Sundaresan S/o Jagadeeswaran, Hindu, aged about 45 years, residing at Flat No. 69, Sai Gangotri Apts., N.S.R. Road, Sai Baba Colony, Coimbatore 641 025.

The address for service of the Petitioner is same as above and in care of his counsel Mr. P.R. Ramakrishnan /Advocate, “Ram Prasad , No. 2, Ramar Koil Street, Ram Nagar, Coimbatore - 641 009.

II. Respondents/ Plaintiffs

1. Mrs. K. Mangayarkarasi, W/o. Late Mr. N. Kadiravadivei, Hindu, aged about 77 years, residing at A2/1, Sree Annapporna Apartments, Bharathi Park, 1st cross, Saibaba Colony, Coimbatore- 641011 Presently residing at No. 153, Lakshmi Mills Colony, Coimbatore South, Pappanaickenpalayam, Coimbatore - 541037.

2. Mrs. K. M. Shredevi, D/o Late N. Kathiravadivel, Hindu, aged about 48 Years, residing at Flat #503, Kanakadhara's Landmark Apts., Virat Nagar Colony, Saket Road, Kapra, Hyderabad - 500 062,

Both Rep. by their Power Agent Mrs. Jaishree S, W /o. Mr. Sandeep, Residing at 153, Lakshmi Mills Colony, Pappanaickenpalayam, Coimbatore - 641 037.

III. Respondent/2nd Defendant

3. Mrs. Manonmani Angannan D/o Late N. Kathlr