Sabyasachi Mukherji, J. - (1.) THIS is an application under Section 34 of the Arbitration Act, 1940 for stay of the Suit No. 214 of 1977.
(2.) THE said suit was instituted on/or about 16th of April, 1977 by the Shahadara (Delhi) Saharanpur Light Railway Company Limited (in voluntary Liquidation). THE basis of the claim of the said suit is that the plaintiff was operating a tramway under the Indian Tramways Act, 1886 and/or a light railway under the Indian Railways Act, 1890 between Shahadara (Delhi) Railway Station and Saharanpur. THE length of the said system was about 92.5 miles equivalent to 148 kilometers. For operating the said system the plaintiff prepared and built extensive earth work on which the said tramway and/or railway tracks were based of which the average width was about 10 ft. stretching for the said 148 kilometers. THE said earth work on which the tramway and/or railway tracks was placed was of a permanent character and the plaintiff had incurred huge expenses in the execution. It is also the case of the plaintiff that as part of the said system the plaintiff had also built and/or constructed extensive buildings, railway stations, sidings, sanitary equipments and other things all of which have been dismantled and/or sold by the plaintiff since the plaintiff's voluntary liquidation.
(3.) THE plaintiff company had gone into voluntary liquidation by a resolution dated 10th of Dec. 1970. THE plaintiff further stated that it was a permanent licensee under the defendant in respect of the said system for value paying to the defendant 50% of its surplus profits.;