TOBU ENTERPRISES PVT LTD Vs. CAMCO INDUSTRIES LTD
LAWS(CAL)-1983-4-9
HIGH COURT OF CALCUTTA
Decided on April 08,1983

TOBU ENTERPRISES PVT.LTD Appellant
VERSUS
CAMCO INDUSTRIES LTD Respondents

JUDGEMENT

M.M.Dutt, J. - (1.) THE appellant Tobu Enterprises Private Limited has preferred this appeal against the judgment and order dated Jan. 25, 1983 of a learned single Judge of this Court granting leave to the respondent, Cameo Industries Limited, under Clause 12 of the Letters Patent to file an application under Section 20 of the Arbitration Act, 1940; the said application has since been registered as a suit being Special Suit No. 3A of 1983.
(2.) BY an agreement in writing dated Nov. 1, 1980 entered into in Calcutta within the ordinary original jurisdiction of this Court between the appellant and the respondent, it was agreed that the appellant would appoint the respondent its distributor of Children Vehicles produced by it. In the said agreement, the appellant was the first party and the respondent was the second party. The agreement, inter alia, provides as follows : "(1). The agreement can be terminated by a notice of three months in writ-Ing from either side. (2). The First Party will give the Children Vehicles for the aforementioned areas to the Party of the Second Part only till this agreement is in force. (3). Payment will be made in full advance for each supply by a crossed bank draft in favour of the First Party, payable at New Delhi. (4). In the event of any dispute arising out of the contract the matter will be given to arbitrators appointed by both the parties failing which the jurisdiction Of Delhi High Court will apply." The agreement further provides that the distributorship of the respondent relates to the whole of West Bengal excluding Darjeeling and Jalpaiguri districts. Further, a sum of Rs. 1,00,000/-will be kept in deposit with the appellant by the respondent till the distributorship of the respondent continues. The deposit amount will bear simple interest at the rate of 12% per annum payable annually.
(3.) DISPUTES and differences arose between the parties in regard to the distributorship of the respondent which resulted in the filing of the application under Section 20 of the Arbitration Act by the respondent in this Court. In the said application, the respondent prayed for leave under Clause 12 of the Letters Patent alleging, inter alia, that a part of the cause of action arose within the ordinary original jurisdiction of this Court. The learned Judge, by the impugned order dated Jan. 25, 1983, granted leave under Clause 12 of the Letters Patent enabling the respondent to file the application under Section 20 of the Arbitration Act in this Court. Thereafter, the respondent, made an application under Section 41 of the Arbitration Act praying for an interim order in terms of prayers (a) and (b) of the application under Section 41. The learned Judge passed an interim order dated Jan. 25, 1983 in terms of prayers (a) and (b), which are as follows : "(a). An injunction do issue restraining the defendant, its servants or agents or representatives or officers, employees or assigns or otherwise whosoever in the State of West Bengal (excluding Darjeeling and Jalpaiguri districts') of its products (sic) except through the petitioner until disposal of the arbitration proceedings and/or until further orders of this Hon'ble Court. (b). An injunction do issue restraining the defendant, its servants or agents or representatives or officers or employees or assigns or otherwise whosoever from making any deliveries of any goods or giving effect to any contract or order or agreement made by the defendant directly with any party other than your petitioner in respect of its products in the State of West Bengal (excluding Darjeeling and Jalpaiguri districts) until further orders of this Hon'ble Court.";


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.