IFCI FACTORS LTD Vs. SPANCO LIMITED

JUDGEMENT

(1.) I.A. 3918/2017 in CS(OS) 2781/2015 1. Present application has been filed on behalf of the defendant No.2 under Section 8 read with Section 5 of the Arbitration and Conciliation Act , 1996.

(2.) In the present application, it has been averred that the Clause 25 of the Agreement for the Factoring of Receivables dated 26th July, 2011 executed between the plaintiff and defendant No.1 contains an arbitration clause.

(3.) Learned counsel for defendant No.2 states that since the plaintiff has filed the present suit jointly against defendants No.1 and 2, it will have to first prove that the defendant No.1 has defaulted in making repayments under the said Agreement for the Factoring of Receivables dated 26th July, 2011-which contains an arbitration clause. In support of his submission, he relies upon the judgment of the Apex Court in Chloro Controls India Private Limited Vs. Severn Trent Water Purification Inc. & Ors., (2013) 1 SCC 641.