BALASUBRAMANYAN
VOC Industrial Workers Co-operative Housing Society – Appellant
Versus
M. Karuppuswami – Respondent
JUDGMENT :- This second appeal relates to a suit stayed by the trial court under S. 34 of the Arbitration Act. The stay of suit was granted to enable the parties to go to the arbitrator for resolving the dispute which was the subject-matter of the suit. The arbitration, however, became infructuous. The second appeal raises the question as to how the trial court should have proceeded in the circumstances stated above.
2. The suit in this case was filed in the District Munsif Court, Coimbatore, by a building contractor against a cooperative building society and two of its principal office-bearers. The suit was for accounts. The defendants entered appearance in the suit, but did not file any written statement. They moved the court, instead, for an order staying the suit under S. 34 of the Arbitration Act. They invoked the arbitration clause in the suit contract. The learned District Munsif granted the application of the defendants and stayed the suit. That was on 18-3-1966. For a long time thereafter, however, nothing happened in the arbitration. The defendants did not take any initiative in the matter. In fact, contrary to what was said before the learned District Munsif in t
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