SNAB PUBLISHERS PVT LTD Vs. VARIETY BOOK DEPOT

JUDGEMENT

(1.) IA No.1771/2011 (u/S. 8 of Arbitration & Conciliation Act) In this suit for recovery of Rs.1,10,16,922.87p. with interest, defendant has come up with this application to invoke the 9th Arbitration Clause as contained in the Agreement of September, 2008 seeking reference of the dispute raised herein as well as the proposed counter claims of the defendant, to an Arbitrator who is to be appointed jointly by the parties to this suit.

(2.) PLAINTIFF-company is engaged in the business of printing and publishing of books and the defendant firm is in the business of distribution and bankings and the business dealings between the parties related back to the year 1994 when the plaintiff/publisher had approached the defendant for distribution of the books "Vegetarian Wonders" etc. Initially there was no formal written agreement between the parties and in the usual and ordinary course of business on account payments were being made by the defendant to the plaintiff who had been maintaining a running account which was continuous, mutual, open and current. However, the present suit is based upon Invoices, which is said to be a written contract.

(3.) CLAUSE 17 of the aforesaid Distribution Agreement of 9th September, 2008 (Annexure-A) contains an Arbitration CLAUSE which is comprehensive one. It reads as under:- "ARBITRATION: In the event of any dispute, difference or claims arising between the parties hereto in connection with this agreement or the construction or interpretation of any of the clauses hereof, or any rights and entitlements of the respective parties, or anything done or omitted to be done pursuant hereto the parties shall first endeavour to amicably settle such disputes, differences or claims, failing which the same shall be referred to the arbitration of a sole Arbitrator jointly appointed by both the parties under the provisions of the Arbitration and Conciliation Act, 1996 as amended from time to time or any statutory replacement thereof. The arbitration proceedings shall be held at New Delhi a place to be mutually agreed between the parties. The provision of this clause shall survive the period/termination of this agreement."