N D DEVELOPERS PRIVATE LIMITED Vs. V SIDDA REDDY S/O VENKATAPPA REDDY; KANTHAVENI W/O GOVINDA REDDY AND ORS

JUDGEMENT

(1.) The petitioner herein is the plaintiff in O.S.No.909/2010. The respondents herein are the defendants in the said suit. In the suit, the respondents herein filed an application in I.A.No.3 under Section 8(1) of the Arbitration and Conciliation Act, 1996, seeking that the matter be referred to arbitration as the parties are governed by an arbitration clause. The Court below accepting the said contention has allowed the application in I.A.No.3 and referred the matter to arbitration. The plaintiff claiming to be aggrieved by the same is before this Court in this petition.

(2.) In the instant petition, the only question that would arise for consideration is as to whether the Court below has properly noticed the arbitration clause existing in the agreement and as to whether in the nature of the relief sought in the plaint, the Court below was justified in referring the matter to arbitration.

(3.) Learned counsel for the petitioner while assailing the order of the Court below would refer to the arbitration clause contained at Clause 41 of the Joint Development Agreement dated 14.09.2004 (Annexure-C) to contend that the clause is specific insofar as the referable arbitral disputes which is only with regard to the specific performance, recovery of damages and compensation. In that context, it is contended that the instant suit being one for injunction would not fall within the purview of the arbitration clause and therefore, the Court below was not justified.