NEPG MICON LIMITED Vs. PERFECT ENGINEERING MYSORE WORKS

JUDGEMENT

(1.) WITH the consent of the parties these writ petitions and the appeals have been heard together for final disposal. For the sake of convenience we will be referring to the parties as per their ranks arrayed in the proceedings before the Court below.

(2.) THE petitioner/appellant is the sole defendant in Arbitration Case Nos. 3 and 4 of 1996 purported to have been filed before the principal District Judge. Mysore, under Section 8 of the Arbitration and Conciliation Act, 1996 ("1996 Act" for short ). In the said cases the plaintiff-respondent had sought for appointment of an Arbitrator in terms of the Arbitration Clause and referring of the dispute to the said Arbitratior.

(3.) THE plaintiff is a proprietary concern. It had undertaken job work of bending an fabricating "shell plates" supplied by the defendants. According to him Rs. 12,55,406/- and rs. 33,03,738/- in two different accounts had fallen due to him on account of the above job work done by him for the defendants. His case before the Court below was that the defendant-Company neither cleared the dues nor had referred the matter to the Arbitrator as per the agreement between them. According to the plaintiff the arbitration clause is contained in the purchase order itself, which is to the following effect : "all disputes are subject to arbitration and the matter shall be referred to the sole Arbitration of the Chairman of the company or the person nominated by him on his behalf and the venue of Arbitration will be at Madras. The decision of the Arbitrator described above shall be final and binding on both the parties".