- (1.) Leave granted.
(2.) The respondent-M/s AK & I Advertising Pvt.Ltd. and the appellants were admittedly in a contractual relationship wherein the respondent was assigned with the responsibility of handling advertisement work of the appellants. According to the agreement between the parties, the payment mechanism settled between the parties required the respondent to raise bills with supporting vouchers within 15 to 30 days of the publication of the advertisement. The bills were to be honoured within 55 days of the date of publication and/or telecast of the advertisement. It is also not a matter of dispute, that Clause 11 of the contract contemplated, that disputes and differences arising between the parties in connection with their contractual obligations would be referred to an arbitrator as agreed to by the parties. And that, the dispute would be settled in consonance with the provisions of the Indian Arbitration Act.
(3.) It is also not a matter of dispute, that consequent upon differences arising between the parties, the contract was eventually terminated by the appellants in December, 2006. After the termination of the contract, the respondent - M/s AK & I Advertising Pvt.Ltd issued a letter requiring the appellants to clear the outstanding dues, which were quantified at Rs.3,17,82,789/-, and in addition thereto, interest on delayed payment till 31.12.2006. After the receipt of the aforesaid communication, the appellants released an amount of Rs.71,58,100/-, and a further amount of Rs.60,00,000/-, totalling in all Rs.1,31,58,100/- (less TDS of Rs.4,12,678/-).;