ATLAS INDUSTRIAL CORPORATION Vs. GRAPHIC MACHINERIES

JUDGEMENT

(1.) By this order I would be disposing of the above application filed by the respondent under Section 34 of the Arbitration Act, 1940 for stay of the present suit.

(2.) The present suit for recovery was filed by the plaintiff for recovery of Rs. 6,17,000.00 together with interest on 25th of January, 1995. The defendant immediately on being served, submitted that he would be moving an application under Section 34 of the Arbitration Act for stay of the suit. The present application thus, came to be filed. The contention of the applicant/defendant in brief is that :

(3.) The learned Counsel for the plaintiff has opposed the application on the ground that the transaction of the loan given under the Sole Selling Agreement was a collateral one. It had been reached after the Sole Selling Agreement has been concluded and the terms settled. In other words, the submission of the learned Counsel for the plaintiff is that the loan transaction is outside the ambit of the arbitration agreement and the payment of the loan instalment cannot be a subject matter for arbitration. It has further been contended by the learned Counsel for the plaintiff that the defendant was not ready and willing for arbitration and had in fact delayed the same by not filling in the vacancy after the death of the Arbitrator. The learned Counsel for the plaintiff contended that the defendant had been delaying the filling of the vacancy with the ulterior purpose of allowing the plaintiff's claim to become barred by limitation.