JUDGMENT :

(Satyen Vaidya, J.)

1. By way of instant Regular Second Appeal, judgment and decree dated 03.03.2016, passed by learned Additional District Judge (II), Shimla, H.P. in Civil Appeal No.16-S/13 of 2015 affirming judgment and decree dated 28.06.2014 passed by learned Civil Judge (Senior Division), Shimla, H.P. in Civil Suit No. 31/1 of 2011/2009, has been assailed.

2. On 10.08.2016, the appeal was admitted for hearing on following substantial questions of law:

(i) Whether the findings of the learned Courts below are perverse and without considering the provisions of taking preliminary objections at the initial stage and limitation?

(ii) Whether the learned Courts below have failed to appreciate the arbitration agreement in its true perspective and the conclusions arrived at by the learned Courts below are perverse?

3. The parties hereinafter shall be referred to by the same status as they held before the learned trial Court. The appellant herein was the plaintiff and the respondents herein were the defendants.

4. Plaintiff sued defendants for recovery of Rs.9,00,000/- with interest pendente lite and future at the rate of 24% per annum. The suit was filed on the premise that