- (1.) The petitioners have challenged order dated 28.9.2013, dismissing the application filed under Section 8 of the Arbitration and Conciliation Act,1996 (for short,'the Act'), for referring the dispute to the Arbitrator in terms of the agreement.
(2.) In short, the petitioners entered into an agreement with the dealer for custom milling of paddy for the year 2010-2011. The agreement contains Arbitration Clause 26 which provides that in the event of disputes/differences arising out of or touching or concerning the agreement, the parties may invoke the arbitration clause.
(3.) Since the miller did not mill the entire stock of paddy and committed breach of contract, the matter was referred to the Arbitrator, who sent a notice of arbitration proceedings to the miller on 30.4.2013. The miller/respondent also filed a suit for mandatory injunction directing the defendants to settle the accounts of the plaintiff for the crop year 2010-11 and 2011-12, to refund the amount of cash guarantee, amount of four cheques and milling charges after deducting the costs of bardana retained by the miller, with consequential relief of permanent injunction restraining them, their servants and agents from interfering in the day to day business of the plaintiff.;