KOHINOOR CREATIONS Vs. SYNDICATE BANK

JUDGEMENT

(1.) THIS appeal is against order dated 6.8.2001 passed by the Debts Recovery Tribunal-II, Delhi in O.A. No. 58/2001 -- Syndicate Bank v. M/s. Kohinoor Creations

(2.) By the impugned order appellant's Interim Application No. 180/2001 praying for stay of proceedings in the O.A. on the ground that the Appellant No. 1 has an arbitration agreement with the respondent Bank, has been rejected. Feeling aggrieved with the order, this appeal has been filed. The appeal has been vehemently opposed by the respondent Bank.

(3.) THE aforesaid O.A. has been filed by the respondent Bank against five defendants. THE first defendant is M/s. Kohinoor Creations and the rest of defendants are individual persons. THE first defendant executed an Export Credit Agreement with the said Bank to avail packing credit facility from the said Bank and the rest four defendants stood guarantors for the loan. THE Export Credit Agreement between the first defendant and the said Bank contains an arbitration clause. THE guarantee agreements executed by rest of the defendants do not contain any arbitration clause.