SHRIRAM TRANSPORT Vs. ABDUL KALEEL SAB

JUDGEMENT

(1.) This revision petition is field against rejection of the application filed by the petitioner under Section 8 of the Arbitration and Conciliation Act, 1966 (for short 'Act" herein afterwards) in O.S.No.292/2013, a suit filed by the respondent herein. The petitioner has filed an application under Section 8 of the Act, with a prayer to refer the case to Arbitration and entire suit of the plaintiff - petitioner be disposed off.

(2.) It is the case of the petitioner that the respondent has filed Suit O.S.No.292/2008 seeking injunction against the petitioner on the ground that he had entered into loan-cum-hypothecation agreement with the petitioner on 30.06.2010, in respect of a lorry bearing No. KA-24-5445 and defaulted to pay the installments and to prevent the repossession of the vehicle, he had entered into fresh loan-cum-hypothecation agreement on 11.03.2013 which contained Arbitration Clause as per Clause No.15. The respondent had again defaulted to pay the installments and to prevent the repossession of the vehicle, he had filed the above said suit taking advantage of the arbitration clause in the said agreement to the effect that, "all disputes, differences and / or claims arising out of these present or as to the construction, meaning or effect here of or, as to the rights and liabilities of the parties hereunder shall be settled by arbitration to be held in Hosur".

(3.) Learned counsel for the petitioner submitted that when an agreement provides provision for the arbitrator / arbitration at Hosur, the civil court is ceased of its power / discretion / jurisdiction to interfere in the matter and further, in support of his submission he referred to a decision of the Hon'ble Supreme Court reported in 2015 (4) SCJ 52 in the case of "M/s. Sundaram Finance Limited Vs. T. Thankam" wherein it has been held as under:-