APPLIED ELECTRONICS LIMITED Vs. MAHANAGAR TELEPHONE NIGAM LIMITED

JUDGEMENT

(1.) The defendant No. I M/s. Mahanagar Telephone Nigam Limited (MTNL) has moved the above application in the suit, under Section 34 of the Arbitration Act, 1940, for staying proceedings in the suit, in view of their being an arbitration agreement in the contract dated 28.2.1995, which is the subject matter of the aforesaid suit.

(2.) The defendant's case is that Clause 2 of the aforesaid contract contains an arbitration Clause, categorically providing for reference of disputes and differences to the sole arbitration of the Chief Managing Director of MTNL or his nominee.

(3.) The present suit has been filed by the plaintiff for recovery of Rs. 1,97,11,751 .00 (Rs. One crore ninety seven lakh eleven thousand seven hundred and fifty one only) against MTNL as defendant No. I and U.O.I as defendant No. 2. In addition, the plaintiff sought an injunction restraining the defendants from disconnecting the existing pay phones. A further declaration is sought that the defendants are not entitled to reduce the commission payable. The plaintiff also claims compensation for the losses suffered on account of excessive metering and billing and wrongful disconnection of telephone connections and downward revision in the commission.