SANSARCHAND DESHRAJ Vs. STATE OF M P

JUDGEMENT

(1.) THIS is a plaintiffs appeal under Section 39 of the Arbitration Act by which the order passed by the First Additional District Judge, Jabalpur, in Civil Suit No, 26-A of 1959 staying the proceedings in the suit under the provisions of Section 34 of the Arbitration Act is challenged.

(2.) THE main contention urged on behalf of the plaintiff-appellant is that it is too late now for the applicant to ask for stay of proceedings under Section 34 of the Arbitration Act (hereinafter Called the 'Act') inasmuch as he has already taken 'other steps in the proceedings' within the meaning of Section 34 of the Act.

(3.) THE plaint was filed on 5-8-1959 and on the same day, an application for grant of temporary injunction against the defendants was also made. On 6-81959, ex parte temporary injunction restraining the defendants from attaching moveable property except cash was passed by the trial Court. On behalf of defendants Nos. 1 and 3 vakalatnama was filed on 1-9-1959. THE counsel for defendants Nos. 1 and 3 stated on that day that he was prepared to file reply to the original application for temporary injunction but as on 1-9-1959 the plaintiff amended his previous application for temporary injunction the Court ordered the reply to be filed to the amended application on 8-9-1959. THE reply was filed by Shri Uppadhyaya opposing the grant of temporary injunction and raising these points also in the reply, that both the lease deeds contained arbitration clauses according to which the dispute between the parties had to be decided by an award of the Superintending Engineer and that the Court had no jurisdiction to entertain the suit by virtue of the provisions of Section 34 of the Northern India Ferries Act. THE case was then fixed for arguments on the application for temporary injunction on 19-9-1959. On this date, the defendants took an adjournment to argue the case. Arguments were heard on 22-9-1959 and the Court rejected the application for temporary injunction on 23-9-1959. On 17-11-1959, an application was made on behalf of the defendants under Section 34 of the Act to stay the proceedings in the suit. THE plaintiff filed his reply to this application cm 21-12-1959 and the proceedings were ordered to be stayed by the trial Court on the same day.