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1977 Supreme(J&K) 35

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Mian Jalal-ud-Din, J.
Behari Lal - Appellant
Versus
Prakash Chand - Respondent
Civil Revision No. 59/1976
Decided On : 13 May, 1977

Advocates Appeared:
Advocate For Appellant: M.L. Qureshi
Advocate For Respondent: P.L. Kaul

An application for stay of proceedings under section 34 of the Arbitration Act is not maintainable if the party does not show willingness to conduct arbitration and has taken steps in the proceedings.

Headnote:

Arbitration Act - Application for Stay of Proceedings - The court held that the defendant's application for stay of proceedings under section 34 of the Arbitration Act was not maintainable as the defendant did not meet the requirements of the section and had taken steps in the proceedings.

Fact of the Case:

The defendant sought a stay of proceedings under section 34 of the Arbitration Act in a suit for rendition of accounts and dissolution of partnership. The court initially passed orders on the plaintiff's applications, and the defendant made several applications to the court.

Finding of the Court:

The court found that the defendant's application for stay of proceedings was not maintainable as he did not meet the requirements of the section and had taken steps in the proceedings.

Issues: The key issue was whether section 34 of the Arbitration Act was attracted to the case.

Ratio Decidendi: The court held that the defendant's application for stay of proceedings was not maintainable as he did not show willingness to conduct arbitration and had taken steps in the proceedings.

Final Decision: The court affirmed the lower court's decision to dismiss the defendant's application and dismissed the revision petition, leaving the parties to bear their own costs.

1. This revison petition is directed against the order of the 1st Additional Munsiff Srinagar dismissing the application of the petitioner under section 34 of the Arbitration Act.

2. Briefly speaking the facts of the case are that in a suit for rendition of accounts and dissolution of partnership brought by Prakash Chand the plaintiff respondent against Behari Lal the defendant petitioner the court initially passed certain orders on the applications filed by the plaintiff alongwith the suit. Notices were issued to the defendant to appear and file objections to these orders and also written statement in the case. The defendant appeared. He made a number of applications to the court for recalling these orders. He even sought time to file written statement as is evident from the two interlocutory orders of the court dated 25-5-76 and 9-6-76. Time was granted by the court for this purpose. However, on a subsequent date the defendant made an application under section 34 of the Arbitration Act asking the court to stay the proceedings in view of the Arbitration clause in the partnership deed. This application was resisted by the plaintiff on the ground that it was not maintainable and could not be filed at this stage of the suit.

3. Elaborate arguments were addressed by the learned counsel for the parties before the learned court below. The learned Judge agreed with the plaintiff that the application was not maintainable and was misconceived. It was accordingly dismissed. Aggrieved by this order the defendant has come up in revision before this court.

4. The important point that falls for determination in this revision petition is as to whether section 34 is attracted to the case. Section 34 of the Arbitration Act provides; "Where any party to an arbitration agreement or any person claiming under him commences any legal proceedings, against any other party to the agreement or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings may, at any time before filing a written statement or I taking any other steps in the proceedings, apply to the judicial authority before which the proceedings are pending to stay the proceedings; and if satisfied that there is no sufficient reason why the matter should not be referred in accordance with the arbitration agreement and that the applicant was, at the time when the proceedings were commenced, and still remains, ready and willing to do all things necessary to the proper conduct of arbitration, such authority may make an order staying the proceedings."

5. It is clear that before the request of the defendant to stay proceedings could be acceded to it was important for him to show that he was willing to do all things necessary to the per conduct of the arbitration and that he was prepared to abide by the decision of the arbitrator. This is not at all indicated in the application filed by the defendant. The application Incomplete and does not meet, the requirements of the section. Again, what is important is that the defendant should not be taken any steps in the proceedings. As is clear from the various interlocutory orders of the court below the defendant sought several adjournments for filing objections to the applications filed by the plaintiff and the orders passed by the court. He further sought two opportunities to file the written statement. It cannot, therefore, be said that the defendant did not take any steps in the proceedings. I need not quote several authorities of the Indian High Courts as well of this court where the proposition of law has been broadly stated that "even a request by the defendant for grant of adjournment for filing the written statement amounts to taking steps in proceedings after appearance. Therefore where a party such as in the present case makes an application whatsoever in the court or prays for time in filing the written statement that would constitute a step in the proceedings."

6. For these reasons the


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