MARUTI UDYOG LIMITED Vs. MAHALAXMI MOTORS LIMITED

JUDGEMENT

(1.) Admittedly the suit for recovery has been confined to the admitted liability of Rs.7.63 crores. The documents referred to and relied upon by the plaintiff in this regard are as follows :- (i) Letter dated 5/04/1997 by defendant no.1. The relevant para of the same is as under:-

(2.) The defendants have resorted to the arbitration clause of the dealership agreement between the parties. Admittedly there is no dispute that dealership agreement contains an arbitration clause in the form of clause 57 which is to the following effect:-

(3.) It is settled law that the .arbitration clause can be invoked only when there are differences and disputes with regard to certain payments or breach of obligations of the respective parties of the terms of the agreement. However wherever there is an admitted liability, the arbitration clause cannot be invoked. The very connotation "admitted liability" suggests that there are no disputes or differences with regard to the said admitted liability.