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HEMANT CHANDANGOUDAR
Thangavelu. R, S/O. Late T. Rajanna – Appellant
Versus
Santhosh. J, S/O. Joseph – Respondent
ORDER :
Hemant Chandangoudar, J.
The petitioner-plaintiff challenges the order dated 22.08.2019 passed by the XIX Additional City Civil and Sessions Judge, Bangalore, in O.S. No. 6370/2017, by which the application filed by the respondent No.1 (defendant No.1) under Section 8(1) of the Arbitration and Conciliation Act, 1996, came to be allowed. The said order was affirmed vide order dated 06.01.2022 passed in I.A. No. 4 in the O.S. No. 6370/2017, preferred by the petitioner seeking a review of the earlier order.
2. The suit filed by the petitioner-plaintiff was for the recovery of a sum of Rs.16,29,311.74 along with interest at the rate of 18% per annum, and was decreed ex parte on 10.04.2018. Thereafter, the defendant No.1 filed M.A. 358/2018 under Order IX, Rule 13 of the CPC, 1908, and the trial court restored the suit by order dated 20.02.2019. Subsequently, on 20.03.2019, defendant No.1 filed an application under Section 8(1) of the Arbitration and Conciliation Act, 1996, seeking referral of the dispute to arbitration, as stipulated in Clause 12 of the partnership deed dated 26.02.2006. Aggrieved by the order allowing the application on 22.08.2019 and the dismissal of the review
An application under Section 8 of the Arbitration and Conciliation Act must be filed before the first written statement and within the prescribed limitation period; otherwise, it is not maintainable.
The court established that a formal application under section 8(1) of the Arbitration and Conciliation Act is mandatory for referring parties to arbitration, and failure to comply with this requireme....
A party forfeits the right to apply under Section 8 of the Arbitration and Conciliation Act if it fails to file within the time allowed for submitting a written statement.
The court established that a party does not forfeit its right to apply for arbitration under Section 8 even after the expiration of the time to file a written statement, provided there are intervenin....
The limitation for filing an application under Section 8 of the Arbitration and Conciliation Act aligns with the time for submitting the written statement, and failure to comply results in a waiver o....
A party's previous unrelated legal action does not waive their right to invoke arbitration if the subsequent application under Section 8 is filed before their first substantive statement in a related....
Rejection of plaint – When a statute prescribes to do certain thing in a certain manner, the thing has to be done in same manner or not at all – All other modes are expressly forbidden.
The court emphasized strict adherence to procedural requirements for references to arbitration under the Arbitration Act, dismissing applications that do not explicitly comply.
Section 8 of the Arbitration and Conciliation Act, 1996 has a mandatory effect, and once the conditions are fulfilled, the court is obligated to refer the parties to arbitration.
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