EXPORTS APPAREL GROUP LIMITED Vs. SARVARYA TEXTILES LIMITED

JUDGEMENT

(1.) This order will dispose of the application of the defendant under Section 34 of the Arbitration Act seeking stay of the suit filed by the plaintiff for recovery of Rs. 19,76,427.00 . Brief facts giving rise to filing of the application are that:-

(2.) Under a sales contract dated 18th August, 1992 stated to have been entered into between the parties, the defendant had agreed to supply 3,60,000 metres of autoloom grey fabric '30s X 30s - 76/68' with 98" width. The defendant failed to supply any part of the material as stipulated in the agreement. On account of the breach alleged to have been committed by the defendant, the plaintiff states that it had suffered loss of Rs. 19,08,254.00 . The present suit has, therefore, been filed for the recovery of the said loss, alleged to have been suffered by the plaintiff, along with interest.

(3.) Instead of filing the written statement, the defendant has filed this application under Section 34 of the Arbitration Act for stay of the suit on the allegations that the agreement contained an arbitration clause being clause No. 11 under which the disputes were liable to be referred to an Arbitrator and as such the suit was liable to be stayed. It is stated that the defendant was always ready and willing to refer the matter to the arbitration in accordance with the agreement between the parties; he had not taken steps in the proceedings; the application was being filed without any undue delay and was bona fide. Therefore, it was prayed that the suit be stayed.