- (1.) Leave granted.
(2.) An order of the Andhra Pradesh High Court dated 16th December, 2005 passed in Civil Revision Petition No. 5241 of 2004 directing the parties to take recourse to the provisions of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act") opining that the suit filed by the appellant herein was not maintainable, is in question before us.
(3.) Appellant and the predecessor-in-interest of the respondents entered into a Memorandum of Understanding on 8.05.2002 in relation to their businesses of export. The same Memorandum of Understanding contained an arbitration clause in the following terms: "In case of any dispute between the two parties, the same shall be referred to Arbitration, by two Arbitrators, nominated by each of the parties. The Award of the Arbitrators shall be binding on both the parties.";