THANGAVELU R. Vs. SANTHOSH J.

JUDGEMENT

(1.) The petitioner-plaintiff challenges the order dtd. 22/8/2019 passed by the XIX Additional City Civil and Sessions Judge, Bangalore, in O.S. No. 6370/2017, by which the application filed by the respondent No.1 (defendant No.1) under Sec. 8(1) of the Arbitration and Conciliation Act, 1996, came to be allowed. The said order was affirmed vide order dtd. 6/1/2022 passed in I.A. No. 4 in the O.S. No. 6370/2017, preferred by the petitioner seeking a review of the earlier order.

(2.) The suit filed by the petitioner-plaintiff was for the recovery of a sum of Rs.16,29,311.74 along with interest at the rate of 18% per annum, and was decreed ex parte on 10/4/2018. Thereafter, the defendant No.1 filed M.A. 358/2018 under Order IX, Rule 13 of the CPC, 1908, and the trial court restored the suit by order dtd. 20/2/2019. Subsequently, on 20/3/2019, defendant No.1 filed an application under Sec. 8(1) of the Arbitration and Conciliation Act, 1996, seeking referral of the dispute to arbitration, as stipulated in Clause 12 of the partnership deed dtd. 26/2/2006. Aggrieved by the order allowing the application on 22/8/2019 and the dismissal of the review petition by order dtd. 6/1/2022, the petitioner has filed the present petition.

(3.) Before the ex-parte decree, defendant No.1 had entered appearance on 27/10/2017 and sought time to file a written statement. Defendant No.2, though served with notice, remained absent and was subsequently placed ex parte. Since defendant No.1 failed to file a written statement, the trial court posted the matter for the plaintiff's evidence on 1/1/2018. Due to the failure of the defendants to contest the suit, the trial court decreed the suit, directing the defendants to pay Rs.16,29,311.74 along with interest at the rate of 10% per annum.