SEEMA BHATIA Vs. YAMAHA MOTOR INDIA PVT LTD

JUDGEMENT

(1.) A Dealer Sales Agreement ('DSA' for short) was entered into on 1.11.1996 between Escorts Yamaha Motors Limited (claim to be the predecessor-in-interest of the defendant) and the plaintiff for sale and service of Escorts Yamaha Motors Limited products. The agreement was operated and apparently some disputes arose between the parties inasmuch as the plaintiff owed amounts to Escorts Yahama Motors Limited.

(2.) On 8.12.2000, an agreement/Memorandum of Understanding ('MOU' for short)was entered into by exchange of letters. The matter did not get resolved even thereafter with the result that a legal notice was served by the plaintiff on the defendant dated 2.8.2004 pointing out the alleged failures of the defendant in complying with the terms of the MOU dated 8.12.2000. In view of these disputes, the defendant invoked the arbitration clause in the DSA dated 1.11.1996 being clause 'L', which is as under:

(3.) The plaintiff has thereafter filed the present suit for a decree of declaration and permanent injunction. The plaintiff seeks a decree of declaration that there is no subsisting arbitration clause between the parties and for injunction against the proceedings before the arbitrator so appointed by the Indian Council of Arbitration.