TATA FINANCE LTD Vs. T R S VIJAIRAM

JUDGEMENT

(1.) THE present revision is directed against the order of the learned Additional District Munsif, Madurai Town, dated 28.10.2004, made in I.A.No.946 of 2001 in O.S.No.710 of 2001.

(2.) THE first defendant who has unsuccessfully contested the application under Section 8 (1) of the Arbitration and Conciliation Act, 1996, (hereinafter called the Act,) is the petitioner before this Court. THE respondents 1 and 2 who are the plaintiffs 1 and 2 in O.S.No.710 of 2001, have filed the suit against the petitioner herein as well as against three others. Though the suit has been filed against the defendants 1 to 4, the plaintiffs have prayed for relief only against the defendants 1 to 3 only. THE prayer in the suit that has been sought for by the respondents 1 and 2 herein is as follows:-

(3.) IN the said suit, the first defendant has filed the application under Section 8(1) of the said Act, to refer the parties to Arbitration as per Arbitration clause in the said agreement. The plaintiffs 1 and 2 who are the respondents 1 and 2 herein have resisted it. The Court below dismissed the application on the ground that the plaintiffs 1 and 2 stating that the agreement is not valid and binding on them have filed the suit. The Court below further has held that such matters have to be decided only by the Civil Court and not by the Arbitrator.