JMC PROJECTS (INDIA) LIMITED Vs. RITES LIMITED

JUDGEMENT

(1.) This application has been filed by the defendant under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the said Act) seeking stay of the suit which has been filed by the plaintiff on account of the existence of a valid and binding arbitration agreement between the parties.

(2.) It is not disputed that the agreement between the parties contains a clause for settlement of disputes through arbitration. As disputes had arisen between parties, an arbitral tribunal consisting of three members was constituted. It is not in dispute that the question arose before the Tribunal as to whether the matters in dispute fell within the category of excepted matters.

(3.) The present case is peculiar in as much as although the plaintiff had invoked the arbitration clause, it was the case of the plaintiff itself that the claims raised by it fell within the category of excepted matters under sub- para 25.3 of para 25 of the General Clauses of Contract which lists matters deemed as excepted matters. The defendant/respondent also joined in the stand and repeatedly asserted that the disputes were not capable of arbitration as they fell within the category of excepted matters. It may be useful in this regard to refer to the communications between the parties and the proceedings before the arbitral tribunal.