Manmohan Singh, J.

1. The present suit was filed by the plaintiff for declaration that no arbitration agreement exists between the plaintiff and the defendants and for damages worth Rs. 25,08,365/-. The plaintiff is a duly incorporated company carrying on its business of manufacturing, selling importing, exporting and sourcing commodities, textiles etc. and is also involved in infrastructure development and sea ports.

2. Defendant No. 2, a duly incorporated company with its office at Mumbai introduced the plaintiff to defendant No. 1 in its capacity as a commodity broker. Defendant No. 1 is a company incorporated in Indonesia and engaged in the business of crude palm oil, i.e. in refining, trading and exporting the same.

3. Defendant No. 2 made certain representations to the plaintiff, including issuing a seller confirmation note dated 17.07.2008 for trading oil between the plaintiff and an identified buyer 'Jayesh Oil Trade Pvt. Ltd.', on the basis of which a Sales Contract was executed between the parties on 24.07.2008.

4. As per the contract, defendant No. 1 was to sell 500 MT Crude Palm oil to the plaintiff at a unit price of US$ 1040 per MT for which a marine insurance policy cove