MOHAN & COMPANY Vs. PEC LIMITED

JUDGEMENT

(1.) THIS application is made on behalf of Respondent No.2 under Section 151 CPC for referring the counter claims of the Respondents to the learned Arbitrator. It is submitted by the Applicant/Respondent that vide order dated 24th July, 2006 this Court allowed the application of the Petitioner under Section 11(6) of the Arbitration and Conciliation Act (hereinafter called as the Act) and appointed Justice H.C.Goel (Retd.) as Arbitrator to decide the disputes between the parties. Pursuant to appointment of the Arbitrator, the Petitioner filed its claim. The Applicant/Respondent filed reply to the said claims of the Petitioner and also filed its counter claims. Petitioner raised a preliminary objection that counter claims of the Applicant/Respondent were not maintainable since the same had not been referred to the Arbitrator. Hence, the present application.

(2.) IT is argued by the Counsel for the Applicant that Applicant in its reply given to the another application of Petitioner under Section 9 of the Act had stated that the Applicant was not liable to pay any amount to the Petitioner and it was the Applicant, who was entitled to receive amounts from the Petitioner as had fallen due to it under the terms of agreement dated 27.1.2004 The Applicant/Respondent therefore, filed counter claim of the said amounts and the same required adjudication by the learned Arbitrator. Counter claims of Rs. 1042 lac approximately have been filed by the Applicant under various heads like loss of business, service charges, overhead expenses, loss of prestige, damages,mental agony etc.

(3.) THE Counsel for the Petitioner also raised a preliminary objection that the application has been made in a disposed of Petition and cannot be entertained. I consider that it is a valid objection. Once the Petition is disposed of, no interim application can be entertained in such a Petition unless, it is an application under Section 152 CPC in the nature of correction of typographical or arithmetical error. If, there is any fresh cause of action in favour of any party, a separate Suit or Miscellaneous Petition can be filed.