Arun Bhansali, J. - (1.) THIS writ petition is directed against order dated 28.07.2006 passed by Additional District Judge No. 3, Udaipur, whereby, the application filed by the petitioners under Section 8 of the Arbitration and Conciliation Act, 1996 ('the Act') has been rejected by the trial court.
(2.) THE respondent Nos. 1 to 4 filed a suit for rendition of accounts, declaration and permanent injunction against petitioners and respondent No. 5 (partners) and respondent No. 6 - Andhra Bank seeking the following reliefs based on the averments made in the plaint: - It appears that the petitioners filed applications under Order VII, Rule 11 CPC read with Section 69 of the Partnership Act, 1932, Order VII, Rule 11 CPC read with Section 3 of the Limitation Act, 1961 and Order VII, Rule 11 CPC read with Sections 10, 11 and 33 of the Rajasthan Court Fees and Suit Valuation Act, 1961 which applications were rejected by the trial court on 17.11.2004 leaving it open for the petitioners to raise the objections in the written statement; whereafter, the petitioners filed application under Section 8 of the Act, inter alia, with the averments that the plaintiffs have referred to partnership deed dated 09.03.1990 and the same has been made the basis for the suit; in the partnership deed at page 9, the Clause pertaining to 'dispute' has been indicated, which provides for settlement of disputes mutually and that decision of majority of partners shall be binding on the parties, which agreement was arbitration agreement and, therefore, the parties deserve to be referred to arbitration in terms of Section 8 of the Act.
(3.) THE application was opposed by the plaintiffs; it was, inter alia, indicated that no arbitration clause exists and the application has been filed for delaying the proceedings; it was prayed that the application be rejected and as the petitioners have failed to file the written statement within the stipulated period, the same may be closed.;