JUDGMENT :

Rajasekhar Mantha, J.

1. An interesting question arises for consideration in this matter. Whether a prayer for stay of a Reference for Arbitration (RFA) can be maintained by a plaintiff in the suit, when the Defendant seeks the RFA 3 years after having entered his principal defense. It is also necessary to consider the law to be applied in this situation and as to whether the issues in the RFA are substantially similar to that of the Suit.

2. G.A. No. 820 of 2020 has been filed by the Plaintiff on 19th May 2020 seeking to restrain the Defendant from proceeding with the RFA made by communication dated 2nd March, 2020.

3. The brief facts as pleaded in the plaint are that the plaintiff No. 1 was engaged in the trade and supply of raw materials within and outside India since 1996, inter alia to the Mittal Group of Companies which are owned and controlled by the Defendant No. 1. The Defendant No. 1 is married to the oldest sister of the Plaintiff No. 2.

4. Sometime in the year 2010, the plaintiffs and the Defendant No. 3 agreed that the latter would be admitted and allotted 25% of issued, subscribed and paid up share capital of the Plaintiff No. 1. The balance 75% shares would be