AIR INDIA Vs. R M INVESTMENT AND TRADING CO PVT LTD
LAWS(CAL)-1993-12-17
HIGH COURT OF CALCUTTA
Decided on December 21,1993

AIR INDIA Appellant
VERSUS
R.M.INVESTMENT AND TRADING CO. PVT. LTD Respondents

JUDGEMENT

A.M.Bhattacharjee, CJ. - (1.) THESE two appeals involve two questions-(1) whether the trial Court could proceed with the hearing of the application for amendment of the plaint and allow amendments thereof in view of the order staying the suit passed by this Court and (2) whether the amendments allowed by the trial Judge are justified on merits. An affirmative answer to both the questions will entail dismissal of the appeal while a negative answer to any of the questions would require us to allow the appeal and to set aside the impugned order allowing amendments.
(2.) THE suit giving rise to tire impugned order under these two appeals has been filed by the respondent R.M. Investment and Trading Company Private Limited (hereinafter referred to as R.M.I.) against the appellant Boeing Company (hereinafter referred to as Boeing) being Suit No. 363 of 1990 in the Original Side of this Court. THEre was an agreement, labelled as "Consultant Service Agreement," between the appellant Boeing and the respondent R.M.I. whereunder R.M.I. was to promote sales of the commercial aircrafts of the Boeing to parties within the territories of India on condition of certain remuneration payable to R.M.I. by Boeing for rendering its service. A part of the remuneration being the fixed retainer was duly paid by the Boeing to R.M.I., but it was the case of R.M.I. that it was not paid any further remuneration as was payable under the Agreement. R.M.I. has filed the aforesaid suit for the recovery of the unpaid amount of the remuneration along with incidental reliefs against Boeing. THEre is also a claim for the said amount on a quantum meruit basis. The Consultant Service Agreement between the parties has an Arbitration Clause in a very wide form as will appear from Clause 10 of the Agreement. On the strength of the said Arbitration Clause, Boeing moved an application under section 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961 for stay of the aforesaid suit. The trial Court has dismissed the application but on appeal, the application has been allowed and the aforesaid suit has been stayed under section 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961.
(3.) BUT while admitting the appeal on 19th April, 1993, it was ordered inter alia that "there shall also be an order of stay of the suit being No. 363 of 1990 (RM. Investment Trading Co. (P). Ltd. v. Boeing Company) till the hearing of the appeal." The application or amendment of the plaint, which was filed earlier, was nevertheless proceeded with by the trial Court in spite of the aforesaid order of stay of the suit while admitting the appeal. The first question, as already stated, therefore, is whether the trial Court could so proceed in view of the aforesaid order of stay of the suit while admitting the appeal on 19th April, 1993.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.