- (1.) This is an application under Section 8 of the Arbitration and Conciliation Act, 1996. The Defendants suggest that the claim cannot be proceeded with in any Civil Court in view of the specific arbitration agreement between the parties. The principal part of the arbitration agreement, which runs into several sub-paragraphs dealing with the procedure, provides as follows: 12.1 All disputes and differences between the parties hereto regarding the construction or interpretation of any of the terms herein shall be referred to the sole arbitration of Sri R.L. Gaggar, Solicitor and Advocate...or any person nominated by him...
(2.) It is the Plaintiff's case that the second Defendant approached the Plaintiff for an inter-corporate deposit of Rs. 2 crore to finance the purchase of an immovable property in Delhi. The plaint narrates the circumstances in which the Plaintiff made over the sum of Rs. 2 crore and the execution of an agreement of December 17, 2009 between the parties hereto. The cause of action in this money suit is found at paragraph 8 onwards of the plaint. The Defendants apparently made over a cheque dated April 23, 2010 for Rs. 2.5 crore on account of repayment of the inter-corporate deposit of Rs. 2 crore and the commitment charges of Rs. 50 lakh agreed to be paid thereon. Such cheque was dishonoured upon presentation. Paragraph 9 speaks of the notice issued under Section 138 of the Negotiable Instruments Act. Paragraph 10 refers to criminal proceedings being launched by the Plaintiff. Paragraph 11 is in furtherance of the presumption that the cheque was drawn for consideration received. The claim follows thereafter.
(3.) The Plaintiff suggests that the arbitration agreement cannot encompass the present suit within its fold. The Plaintiff's argument is two-fold: the Plaintiff says that the arbitration agreement does not cover all disputes relating to or arising out of the agreement or the underlying transaction, but only covers disputes as to the construction or interpretation of the agreement; and, the cause of action is in respect of a dishonoured cheque for which statutory interest has also been claimed.;