High Court Of Himachal Pradesh
K.C.SOOD
Shobit Construction - Appellant
Versus
T.K.International Limited - Respondent
O.M.P. Nos. 32 and 57 of 2004, Civil Suit No 752 of 2003 OMP. Nos 12 and 56 of 2004, Civil Suit No. 51 of 2003
Decided On : 03/07/2005
Arbitration and Conciliation Act, 1996 - Referral to Arbitration - Section 8 - Order 8 Rule 1 of the Code of Civil Procedure - [Arbitration] - [Referral to Arbitration] - [Section 8 of the Arbitration and Conciliation Act, 1996, Order 8 Rule 1 of the Code of Civil Procedure] - The court discussed the application of Section 8 of the Arbitration and Conciliation Act, 1996, and Order 8 Rule 1 of the Code of Civil Procedure in the context of referring the dispute to arbitration and the time limit for filing a written statement. The court emphasized the requirements for referring parties to arbitration under Section 8 and the limitations on extending the time for filing a written statement under Order 8 Rule 1. The court also highlighted the applicability of the Original Side Rules, 1997 in governing the procedure for exercise of original civil jurisdiction in the High Court of Himachal Pradesh.
Fact of the Case:
The defendant filed applications under Section 8 of the Arbitration and Conciliation Act, 1996 and Order 8 Rule 1 of the Code of Civil Procedure for referring the dispute to arbitration and rejecting the plaint. The plaintiff sought to close the defence of the defendant for failing to file the written statement within the specified time limit.
Finding of the Court:
The court found that the defendant's application for referral to arbitration was liable to be dismissed as the original arbitration agreement or a duly certified copy thereof was not filed. The court also found that the defendant lost the right to file the written statement within the specified time limit and that the provisions of Order 8 Rule 1 were not applicable to suits filed on the original side of the High Court of Himachal Pradesh.
Issues: The issues involved the application of Section 8 of the Arbitration and Conciliation Act, 1996, and Order 8 Rule 1 of the Code of Civil Procedure, the time limit for filing a written statement, and the applicability of the Original Side Rules, 1997 in the High Court of Himachal Pradesh.
Ratio Decidendi: The court held that the defendant's application for referral to arbitration was misconceived as the original arbitration agreement or a duly certified copy thereof was not filed. The court also held that the time limit for filing a written statement under Order 8 Rule 1 was not applicable to suits filed on the original side of the High Court of Himachal Pradesh.
Final Decision: The court rejected the defendant's application for referral to arbitration and the plaintiff's applications for closing the defence of the defendant for failing to file the written statement within the specified time limit. The court directed the Registry to take further steps in the case in view of the observations made.
K.C. Sood, J.—The order will dispose of O.M.P. s No. 32 and 57 of 2004 in Civil Suit No. 52 of 2003 and O.M.P. s No. 12 and 56 of 2004 in Civil Suit No. 51/2003 as parties in both the suits are same and one of the question raised is same in both the suits.
2. O.M.P. No. 32 of 2004 is filed by the defendant under Section 8 of the Arbitration and Conciliation Act, 1996 for referring the dispute raised in civil suit No. 52 of 2003 to the Arbitration. By OMP No. 57 of 2004 in Civil Suit Nos. 52 of 2003 and 56 of 2004 in civil suit No. 51 of 2003 under Order 8 Rule 1 of the Code, the plaintiffs pray for closing the defence of the defendant for having failed to file the written statement within the time limited under Order 8 Rule 1 of the Code of Civil Procedure. O.M.P. No. 12 of 2004 (Civil Suit No. 51 of 2003) is filed by the defendant for rejection of the plaint.
3. Plaintiff in civil suit No. 52 of 2003 is M/s. Shobit Construction and another and in civil suit No. 51 of 2003 is Shobit Fabricator and another. The defendant is the same in both the suits.
4. Plaintiff in both the suits claim recovery of the amount due to the plaintiff along with pendente lite and future interest. Relevant facts.
5. In answer to writ summons, Mr. Ramnik Sharma and Mr. S.K. Aggarwal, Advocates appeared for the defendant Company on December 30, 2003 in both the suits, but written statement was not filed. Learned Counsel for the defendant represented that the defendant has not been supplied the documents but the learned Counsel for the plaintiff insisted that the documents have been supplied and affidavit in this respect has already been filed in the Court. Notwithstanding this stand, the Plaintiffs Counsel agreed to supply the copies of the documents on that date itself and the matter was adjourned by the Registrar for filing of the written statement and reply to Misc. Petition No. 386 of 2003 within four weeks. Neither written statement nor reply to the petition was filed by the defendant within the time granted by the Registrar.
6. When the matter came up before the Registrar on March 3, 2004, six weeks time was sought and granted for filing the written statement. The matter was directed to be listed on April 21, 2004. On April 21, 2004, the Registrar found that the written statement was not filed even though the period of six weeks granted to the defendant to file the written statement had expired. Learned Senior Counsel for the Plaintiff contended that the defendant has lost the right to file written statement in view of the provisions of Order 8 Rule 1 of the Code of Civil Procedure. The order of the Registrar in civil suit No. 52 of 2003 reads: "30.12.2003: Present: Mr. Sushil Kukreja, Advocate, for the plaintiff. Mr. Ramnik Sharma, Advocate along with Mr. S.K. Aggarwal, Advocate, for the defendant. The learned Counsel for the defendant states that he has not been supplied with the documents. However, the Counsel for the Plaintiff states that he has supplied the documents and the affidavit has already been filed. The Counsel for the plaintiff states that despite having sent the documents, he will again supply the documents today. Now the matter be listed for filing reply to OMPs No. 386 and 456 of 2003 along with written statement within four weeks. Sd/- (P.C. Sharma) Registrar (Inspection)". 30.12.2003. Similarly, the order of the Registrar in Civil Suit No. 51 of 2003 reads: "30.12.2003: Present: Mr. Sushil Kukreja, Advocate, for the plaintiff . Mr. Ramnik Sharma Advocate, for the defendant alongwith Mr. S.K. Agarwal, Advocate. The learned Counsel for the defendant states that he has not been supplied with the documents. However, the Counsel for the plaintiffs states that he has supplied the documents and the affidavit, has already been filed. The Counsel for the plaintiff states that despite having sent the documents, he will again supply the documents today. Now the matter be listed for filing reply to OMP No. 385/2003 along with written
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