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1980 Supreme(Mad) 107

Madras High Court
RATNAM
J.Sreenivasalu Chettiar - Appellant
Versus
V.Parthasarathi Naidu - Respondent
Decided On : 02/26/1980

Advocates:
V. Sridevan and G. Masilamani, for Petitioner; D.C. Krishnamurthi, for Respondent.

Filing an application for time to file the written statement constitutes a step in the proceedings within the meaning of Section 34 of the Arbitration Act, 1940, and disentitles the defendant from invoking the provisions of the said section for a stay of proceedings.

Headnote:

ARBITRATION ACT, 1940 - SECTION 34 - STAY OF PROCEEDINGS - PARTICIPATION IN PROCEEDINGS - STEP IN PROCEEDINGS - FILING OF WRITTEN STATEMENT - APPLICATION FOR TIME TO FILE WRITTEN STATEMENT - WHETHER CONSTITUTES A STEP IN PROCEEDINGS - INTERPRETATION.

Fact of the Case:

The petitioner, who was the defendant in a suit for possession of property, filed an application under Section 34 of the Arbitration Act, 1940, seeking a stay of further proceedings in the suit. The petitioner contended that he had not participated in the proceedings and had not taken any step in the suit, and therefore, he was entitled to invoke the provisions of Section 34 of the Act. The respondent, on the other hand, contended that the petitioner had taken a step in the proceedings by filing an application for time to file the written statement, and therefore, he was not entitled to a stay of proceedings.

Finding of the Court:

The court held that the petitioner had taken a step in the proceedings by filing an application for time to file the written statement, and therefore, he was not entitled to a stay of proceedings under Section 34 of the Arbitration Act, 1940.

Issues: Whether the petitioner had taken a step in the proceedings by filing an application for time to file the written statement.

Ratio Decidendi: The court held that the petitioner had taken a step in the proceedings by filing an application for time to file the written statement, and therefore, he was not entitled to a stay of proceedings under Section 34 of the Arbitration Act, 1940. The court observed that the petitioner was fully aware of his right to invoke the provisions of Section 34 of the Act, and yet he chose to instruct his counsel to appear before the court and pray for time for filing the written statement. This, in the court's view, was a clear manifestation of a desire on the part of the petitioner to take almost the first step in the suit indicating that he intended to go on with the suit and not to resort to the arbitration provision.

Final Decision: The court dismissed the civil revision petition with costs.

Judgement

ORDER :- The defendant in O.S. No. 75 of 1978, District Munsif's Court, Mayuram, who succeeded in obtaining stay of further proceedings in the suit under S.34 of the Arbitration Act, 1940 (hereinafter referred to as the Act) before the learned District Munsif of Mayuram and lost before the learned Subordinate Judge, Mayuram, is the petitioner in this civil revision petition. Certain facts which would held to appreciate the rival contentions of the parties are not in dispute. It is admitted that the petitioner and the respondent entered into a lease agreement dated 21-12-1964 under which is the respondent wants the petitioner to vacate the premises, sufficient time had to be given and a provision for the nomination of four arbitrators to decide the market value of the superstructure was also made and the value so fixed should be paid by the respondent to the petitioner. Originally, the respondent instituted O.S. No. 397 of 1975 on the file of the District Munsif's Court, Mayuram, for the recovery of possession and that suit was also decreed. However, on appeal, in A.S. No. 28 of 1977, Sub-Court Mayuram, preferred by the petitioner, the suit was dismissed Thereafter, the respondent issued a notice on 25-1-1978 to the petitioner terminating the tenancy in favour of the petitioner and demanding surrender of possession of property expressing his willingness to pay the value of the superstructure as well as the compound wall in a sum of Rs. 950/-. In response to this, the petitioner had on 8-2-1978 sent a reply setting out the terms of the agreement between the parties dated 21-12-1964 and in particular inviting the attention of the respondent that resort would be had to the provision of the Arbitration Act in the event of the respondent filing the suit for the recovery of possession. It was thereafter that the respondent instituted a suit in O.S. No. 75 of 1978 on 15-3-1978 praying for a decree against the petitioner to surrender possession of the suit property with the superstructure or to surrender possession without the superstructure and for other incidental reliefs. It is not disputed that the petitioner was served with the summons in the suit and the suit was posted for appearance on 16-6-1978. On that day. the petitioner entered appearance through counsel and a vakalat on his behalf was also filed. It is admitted that the suit was adjourned to 17-7-1978 for filing of the written statement by the petitioner. However, on 12-7-1978 the petitioner filed an application under S.34 of the Arbitration Act to stay all further proceedings in the suit till the determination of the rights of the parties in accordance of the provisions of the Act. That application was opposed by the respondent herein on the ground petitioner had entered appearance through counsel and had registered time for written statement, that would amount to participation of the proceedings and a submission to the jurisdiction of the court and therefore, S.34 of the Act cannot be invoked by the petitioner.

2. The learned District Munsiff. Mayuram, who heard this application on 1-11-1978, in the course of his order dated 13-11-1978 was of the view that the court automatically and in the usual course adjourned the suit to 17-7-1978 for filing the written statement and no oral representation was made by the learned counsel for the petitioner for filing the written statement and therefore, it cannot be said that the petitioner had participated or had taken any step in the proceeding contemplated under S.34 of the Act. On this conclusion, the learned District Munsif held that the petition was maintainable and allowed the same. However, on appeal in C.M.A. No. 2 of 1979, Sub-Court. Mayuram, the learned Subordinate judge held that the circumstance that time had been granted for filing the written statement indicates that it must have been only on the request of the petitioner and that it is not known how the learned District Munsif was able to recollect a








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