APAR PVT LTD Vs. B S E BOARD

JUDGEMENT

(1.) THIS miscellaneous appeal by the defendants under S.39(1)(v) Arbitration Act, 1940 (hereinafter called 'the Act') is directed against the judgment and order dated 16th November, 1979 passed in Money Suit No. 226 of 1976 rejecting an application filed under S.34 of the Act.

(2.) THE application under S.34 of the Act was filed by the defendants under the following circumstances :- A money suit has been filed by the Bihar State Electricity Board in the Court of the Subordinate Judge I, Patna with a prayer to decree the suit for a sum of Rs. 65,49,535.42 paise, as per details given in the plaint. After service of notice of the suit the defendants appeared and filed an application under S.34 of the Act to refer the suit to arbitration and to stay the proceedings of the suit. THE suit was filed by the plaintiff on 22-7-1976. THE defendants appeared on 25-9-1978 and filed the present application under S.34 of the Act. It is not disputed that before any step was taken in the suit, the defendants at the first opportunity filed the said application.

(3.) THE defendants filed a reply to the said rejoinder reiterating the stand taken in the application under S.34 of the Act. It has also been alleged therein that the defendants were not legally bound to express their willingness and readiness in their reply to the plaintiff's notice. Allegation of waiver on the part of the defendants has also been denied. It further alleged that the points involved in the suit were not complicated.