VIRENDER YADAV Vs. AEROSVIT AIRLINES

JUDGEMENT

(1.) THE present application is filed by the defendants No. 1 and 2 under Section 8 of the Arbitration and Conciliation Act, 1996 (for short `the act") praying inter alia for rejection of the plaint and for reference of all the disputes between the defendants No. 1 and 2 and the plaintiff to arbitration on the ground that the parties are governed by an arbitration clause, in terms of Article 8 of the Agreement.

(2.) A brief reference to the facts of the case is necessary. The plaintiff has filed the present suit against the defendants for permanent and mandatory injunction. It is the case of the plaintiff that the defendant No. 1 appointed the plaintiff as its Sole Carrier Cargo Sales Agent in the Indian territory for a period of four years vide Carrier Cargo Sales Agent Agreement dated 20. 10. 2004 The grievance of the plaintiff is that during the currency of the Agreement, the defendants no. 1 and 2 have appointed the defendant No. 3 as their Cargo Agent within entire Indian territory as assigned exclusively to the plaintiff and thus breached the Agreement governing the parties. The relief sought by the plaintiff in the prayer clause is reproduced herein below for ready reference:-

(3.) COUNSEL for the applicants/defendants No. 1 and 2 submitted that article 8. 1 of the Agreement dated 20. 10. 2004 provides that in case of any dispute or claims concerning the scope, meaning, construction or effect of the agreement, or arising in any manner relating to the Agreement, such dispute/claim shall be submitted for consideration and final settlement to the international Commercial Arbitration Court at the Chamber of Commerce of ukraine, Kiev. The said Article further provides that all the disputes and claims between the parties shall be governed by the laws of Ukraine and the rules of International Commercial Arbitration Court at the Chamber of Commerce of Ukraine. It was stated that as the disputes raised by the plaintiff in the present suit are in connection with the Agreement which specifically provides for a remedy by way of arbitration, the present suit be rejected and all the disputes between the defendants and the plaintiff be referred for adjudication to arbitration. Thus it was stated that the suit instituted by the plaintiff in connection with the disputes arising out of the Agreement is not maintainable against the defendants, and the jurisdiction of this Court is barred.