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2010 Supreme(Ori) 420

R.V.RAVEENDRAN, J.M.PANCHAL
Afcons Infrastructure – Appellant
Versus
Cherian Varkey Construction – Respondent


JUDGMENT

R.V.RAVEENDRAN, J. — Leave granted. The general scope of Section 89 of the Code of Civil Procedure (‘Code’ for short) and the question whether the said section empowers the court to refer the parties to a suit to arbitration without the consent of both parties, arise for consideration in this appeal.

2. The second respondent (Cochin Port Trust) entrusted the work of construction of certain bridges and roads to the appellants under an agreement dated 20.4.2001. The appellants sub-contracted a part of the said work to the first respondent under an agreement dated 1.8.2001. It is not in dispute that the agreement between the appellants and the first respondent did not contain any provision for reference of the disputes to arbitration.

3. The first respondent filed a suit against the appellants for recovery of Rs.210,70,881 from the appellants and their assets and/or the amounts due to the appellants from the employer, with interest at 18% per annum. In the said suit an order of attachment was made on 15.9.2004 in regard to a sum of Rs.2.25 crores. Thereafter in March 2005, the first respondent filed an application under Section 89 of the Code before the trial court praying





















































































































































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