JUDGEMENT
SANJIB BANERJEE, J. -
(1.) THE respondents have no defence on merits to the
present request under Section 11 of the Arbitration and Conciliation Act, 1996.
However, as is fashionable for dexterous litigants without any substantial
defence, the only attempt is to delay the matter by referring to points which are of
no concern to the respondents.
(2.) AT the initial stage of the present proceedings, it was submitted on behalf of the respondents that the document containing the arbitration clause
was an unregistered agreement pertaining to an immovable property and, as
such, the Court could not take cognizance thereof without due stamp duty in
respect thereof being tendered. The original agreement was produced by the
petitioner and it was directed to be carried to the appropriate official for
assessment of stamp duty. It is not in dispute that stamp duty has been paid,
but the respondents seek to make an issue as to the appropriateness of the
stamp duty or the adequacy thereof. Such aspect of the matter is between the
State and the person who presented the document and is of no concern of the
respondents. As to the execution of the agreement for sale of the immovable
property on March 26, 2011, the respondents are not in a position to deny the
same. Indeed, it is the respondents' assertion that such agreement for sale had
been terminated on June 13, 2011. The petitioner invoked the arbitration clause
contained in the agreement for sale of March 26, 2011 by a letter of November
30, 2011. In response, the respondents asserted by their letter of December 5, 2011 that since the agreement had been terminated on June 13, 2011, there was no scope for invocation of the arbitration clause contained therein.
It is elementary that the termination or attempted termination or perceived termination of an agreement containing an arbitration clause does not
necessarily amount to the arbitration clause being extinguished and it survives
the termination or expiry of the matrix contract. Since the merits of the disputes
between the parties are not required to be adjudicated at this stage and all that is
required to be done is to assess whether the arbitration agreement was executed
between the parties and as to whether there are any live disputes between the
parties covered thereby, such assessment has to be made in favour of the
petitioner. There was, admittedly, an agreement executed for sale of an
immovable property. The sale has not been concluded. The agreement -holder
seeks a reference on the ground that the agreement has been illegally terminated.
(3.) THE disputes between the parties are, inter alia, as to whether the agreement has been terminated or whether it could have been terminated or whether the
petitioner had notice of such termination or accepted the same. These are
matters which can be conveniently carried to an arbitration reference in
accordance with the arbitration clause contained in the agreement of March 26,
2011.;
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