- (1.) This is an application under S. 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961, inter alia, praying for an order that Suit No. 363 of 1990 (R. M. Investment and Trading Co. Pvt. Ltd. v. Boeing Company), filed by the respondent be stayed and for further reliefs.
(2.) The petitioner's case is that the respondent, R. M. Investment and Trading Co. Pvt. Ltd., was appointed by the petitioner under a Consultant Service Agreement dated 1-1-86. Under the said agreement, the respondent was to be paid on annual retainer and in addition was entitled to 5% commission for the sale of each aircraft made during the term of agreement. The agreement was to remain in force until 31-12-86. Certain provisions of the agreement was subsequently modified and its terms were extended for a limited period up to 30-4-87. The said arbitration agreement expressly provided that the respondent shall not receive any compensation for sale of aircraft concluded after 30-4-87. Both the original agreement and the modified agreement were partly executed in Calcutta.
(3.) On 16-7-92, the petitioner came to know that the respondent has instituted a suit being Suit No. 363 of 1990 before this Court praying for a decree for U.S. Dollars 17.5 Million equivalent to Rs. 10,07,12,500.00 being the 5% commission payable under the agreement for sale of aircraft. The said suit was filed by the respondent in breach of its contractual obligation to refer all controversies or claims arising out of or relating to the agreement to arbitration as per Clause 10 of the agreement. The further case of the petitioner is that the entire subject-matter of the Suit No. 363 of 1990 is covered by the arbitration clause in the agreement.;