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1987 Supreme(Raj) 301

Rajasthan High Court, Jaipur Bench
M.B. Shrama, J.
Kumari Usha Rani - Appellant
Versus
Indermal & Sons - Respondents
S.B. Civil Revision Petition No. 65 of 1983
Decided On : September 16, 1987

Advocates Appeared:
H.C. Rastogi, for Petitioners; Akbar Khan, for Non-petitioners

Headnote:C.P.C, Sec. JO and Arbitration Act. 1940, Sec. 20 (2)—Stay of suit—It is applicable to suits only— Where arbitration proceedings are pending Sec. 10 C.P.C. will not apply. (Para 4) Revision allowed.

       

M.B. SHARMA, J.—The revision petition has been filed against be order dated October 15,1982, of the learned Additional District Judge No. 1 Alwar. Under the aforesaid order the learned Addl. District Judge allowed the applica-tion by the defendant non petitioners under Sec. 10 of the Code of Civil Procedure, and further proceedings in the case were stayed during the decision of civil suit No. 58/80.

2. The petitioners filed a suit in the court of learned District Judge, Alwar in which a prayer was made for dissolution of firm and for accounts of the firm since October 10 1979 to April 30, 1980 and also thereafter. The aforesaid suit was filed against the non-petitioners No 1 to 3. An application for appointment of Receiver was also filed under Order 40 Rule 1 CPC. In that suit on behalf of the non petitioners Nos. 2 and 3 an application under Sec. 34 of the Arbitration Act 1940 for short, (the Act) was filed praying that the proceedings in the suit be stayed. That application was contested on behalf of the petitioner and after hearing learned counsel for the parties the learned District Judge under order dated August 27, 1980 dismissed the application under Sec. 34 of the Act. The non petitioners Nos. 2 and 3 preferred an appeal against the aforesaid order and this Court under its order dated February 23,1981, allowed the appeal and the application under Sec. 34 of the Act filed on behalf of the non petitioners nos. 2 and 3 was allowed and further proceedings in the suit were stayed This Court further directed the parties to have the dispute which was the subject matter of the proceedings adjudicated by arbitration in accordance with the agreement contained in the partner ship deed.

3. After the decision of the aforesaid case by this court and the stay of the suit under Sec. 34 of the Act, the petitioners sent a notice to the non petitioners Nos 2 and 3 on June 16, 1981 informing them that within 15 days after the receipt of the notice an arbitrator may be appointed and on their failure to do so the petitioners shall take further necessary proceedings according to law after the expiry of the notice. It may be stated that Brijesh Kumar respondent No. 3, appointed Shri Rajendra Kumar Mittal as his arbitrator but respondent No. 2 Prabbudayal refused to accept the notice dated June 16,1981 and the refusal was endorsed by the postman. Since Prabhudayal did not appoint any Arbitrator on his behalf the petitioner made an application under Sec. 8 read with Sec. 20 of the Act on October 17,1981, before the learned trial court for the appointment of Arbitrator/Arbitrators and directing them to make an award and the read ter to make the award as a rule of the court, Several adjournments were taken by the non petitioner Nos. 2 and 3 but instead of filing reply to the application filed by the petitioner, the application under sec. 10 C.P.C. praying that further proceedings on the application under Sec. 8/20 of the Act be stayed. This application was opposed on behalf of the petitioners and as aforesaid the learned court under its impugned order allowed the application and stayed the proceedings on the application under Sec. 8/20 of the Act till the decision of the earlier suit.

4. It may be stated straight away that the order dated October 15, 1982 cannot be sustained. One test of the applicability of Sec. 10 C.P.C. to a particular case is whether, on the final decision being reached in the previous suit, such decision would operate as resjudicata in the subsequent suit. Proceedings under Sec. 8 read wish Sec. 20 of the Act by virtue of sub section (2) of Sec. 20 of the Act have to be numbered and registered as a suit between one or more parties as plaintiff and the other as defendant, as it is well known the suit is registered by filing a plaint. In Inderpal Singh Rassanwalla Vs. M/s Dir Tibetan Woolen Mills (1), an application under Sec. 20 of the Act was filed by Inderpal Singh praying that the agreement be filed in the court and arbitrato





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