Sasidharan Nambiar, J.

Whether a court before which an action is brought in a matter which is the subject of an arbitration agreement has only to refer the parties to arbitration or to appoint an arbitrator and refer the parties to arbitration before that arbitrator under section 8 of Arbitration and conciliation Act. 1996. This is the vital question to be resolved in the appeal.

2. Appellants were the plaintiffs in a suit for dissolution of a partnership firm and for accounting on the file of Sub court, Kozhikode. Respondents were the defendants in the suit who are the other partners of the firm M/s. Deepa Restaurant and Tourist Home, Ramanattukara. On appearance before court on receipt of the summons, respondents filed I.A.2676/03, a petition under section 8 of the Arbitration and conciliation Act 1996 (hereinafter referred to as the 1996 Act) for a reference to arbitration. The partnership deed admittedly contained an arbitration clause. Appellants did not oppose the petition. The learned Sub Judge allowed I.A.2676/03 and referred the parties to arbitration. The suit was disposed accordingly, as per judgment dated 31.7.04. Appellants are challenging the said judgment c