FIRST STONEX LIMITED Vs. MANOJ KUMAR

JUDGEMENT

(1.) This order shall also- govern the disposal of I.A.Nos. 686/95,693/95 and 696/95 in Suit Nos. 1440/94, 1439/94, 1441/94 respectively.

(2.) By this petition under Section 20 of the Arbitration Act, the petitioner seeks directions to the respondents to file original agreement before the Court and to appoint an Arbitrator to adjudicate upon the disputes which have arisen between the parties in respect of the said agreement. The respondents have filed the application under Order 7, Rule 11, Civil Procedure Code for rejection of the petition on the ground that there is no valid and binding contract between the parties.

(3.) Facts relevant and requisite for the purpose of deciding the application under Order 7, Rule 11, CFC lie in a narrow compass. By the collaboration agreement dated 26.6.1992, the respondents agreed to grant mining lease to the petitioner after obtaining the requisite statutory approval under M.P. Minor Minerals Rules from the Competent Authority. As per terms of the agreement, the petitioner paid a sum of Rs. 2,47,(XX).00 to the respondents. The petitioner also incurred expenditure amounting to Rs. 12,45,978.00 in mobilising machinery, labour and equipment for undertaking mining operations. However, the performance of the contract became impossible as the respondents were restrained by the Competent Authority' from entering into collaboration agreement with the petitioner. The petitioner demanded refund of the amount paid by the petitioner but the said demand did not invoke any response from the respondents.