K.Govindarajan,J.

The above Appeal is filed against the order dated 20.3.1997, passed by the learned single Judge in rejecting the Application filed in A.No.3758/1996.

2. The respondents filed a suit in C.S.No.1007/1994 on the file of this Court to declare that the licence agreement dated 25.4.1991, as amended, is unenforceable, illegal, invalid and void, and to direct the defendant to pay the plaintiffs a sum of Rs.10,92,710/- towards the losses sustained by the plaintiff on account of the constructive fraud played by the defendant through illegal agreements and means and also for a direction to pay a sum of Rs.4,40,000/- towards compensatory damages suffered by the plaintiffs on account of the tortious acts committed by the defendant. Pending Appeal, the appellant/defendant filed Application No.3758/1996 under Sec.8 of the Arbitration and Conciliation Act, 1996, hereinafter called 'the Act', to stay further proceedings of the suit in C.S.No.1007/1994 and to refer a dispute for arbitration in terms of Article 15 of the agreement dated 25.4.1991. The said Application was contested by the respondents/plaintiffs.

3. The learned Judge accepted the case of the respondents/pla