UNION OF INDIA OWNING THE SOUTHERN RAILWAY Vs. RAJESH DAMANI PROPRIETOR ALLIED GENERAL SALES CORPORATION

JUDGEMENT

(1.) THIS Civil Revision Petition is directed against the order dated 23.11.2006 in I.A. No.9425 of 2004 in O.S. No.6112 of 2003 on the file of XVII Assistant City Civil Court, Chennai.

(2.) THE Suit in O.S. No.6112 of 2003 has been preferred by the respondent against the revision petitioners before the City Civil Court, Chennai praying for a declaration that the action of the revision petitioners in invoking the risk purchase recovery in respect of the Purchase Order dated 19.8.1999, as amended by the order dated 12.5.1999 is illegal, invalid and unenforceable and for a direction to the revision petitioners to pay to the respondent a sum of Rs.99,072/- with further interest on Rs.57,600/- at 24% per annum from the date of the Plaint till realization and for other incidental reliefs.

(3.) IN response to the summons issued by the Trial Court, the revision petitioners entered appearance and filed an Application in I.A. No.9425 of 2004 praying for a reference to the parties to arbitration, in accordance with the terms as contained in Clause 2900 of the INdian Railway Standard Conditions of Contract.