STELLAR INDUSTRIES Vs. INTERNATIONAL COMBUSTION INDIA LTD

JUDGEMENT

(1.) The petitioner-original plaintiff has put to challenge order dated 1.10.2005, below Exh.22 for making reference of the dispute to the arbitrator in view of Clause -19 of the purchase order.

(2.) The petitioner/plaintiff filed a summary suit for recovery of Rs.20,65,275.63 paise from respondent/defendant. It was the claim of the petitioner that the respondent used to issue purchase orders to the petitioner from time to time with a stipulation of payment of 100% bill amount against receipt of the goods supplied by the petitioner. But there was no clause for payment of interest on unpaid bills. The respondent however, failed to pay certain amounts during the course of transactions and ultimately there was accumulation of outstanding bills which led to filing of summary suit for recovery.

(3.) Respondent appeared in the suit and applied for grant of leave to defend the suit by filing written statement which was granted on 23.4.2004. No written statement was filed. The suit, thereafter, proceeded without written statement for evidence. At that stage an application under Section 8 of the Arbitration and Conciliation Act 1996 r/w Order 7 Rule 11and Section 151 of the Code of Civil Procedure was moved by the respondent for referring the dispute to the arbitrator. The application was opposed on various grounds. After hearing the Counsel for the parties the said application was allowed on 1.10.2005. The petitioner then filed a review application, which also stood dismissed by another order below Exh.35 on 19.4.2006.