QUEENS COLLEGE KANETRA Vs. COLLECTOR VARANASI

JUDGEMENT

(1.) The applicants filed a suit against the opposite parties in the court of the Civil Judge, Varanasi. On the ap plication of the plaintiffs, an ex parte ad interim injunction was issued against the defendants. When the defendants appear ed, they moved an application under Sec tion 34 of the Arbitration Act for staying the hearing of the suit as there was a binding agreement between the parties to refer the dispute to arbitration. This ap plication was allowed on January 14, 1972. Thereafter the defendants moved an application that the ex parte ad interim injunction be vacated. The plaintiffs rais ed an objection that, after the stay of the hearing of the suit under Sec. 34 of the Arbitration Act. the court had no jurisdiction to hear the injunction mat ter. By its order dated May 6, 1972, the trial Court held that the injunction mat ter could be disposed of by it and fixed May 20. 1972, for its disposal. Against this order, the plaintiffs filed a revision before the District Judge, Varanasi. The District Judge rejected the revision sum marily, holding that the order of the trial court did not amount to a case de cided and that the stay of a suit did not divest the trial court of its jurisdiction to dispose of interlocutory matters. The plaintiffs have now come up to this Court in revision.

(2.) The trial court has relied on certain decisions based on the provisions of Sec. 41 of the Arbitration Act in coming to the conclusion that it has juris diction to dispose of interlocutory mat ters, even though the hearing of the suit is stayed under Sec. 34. Some decided cases, in which Sec. 41 has been inter preted, were cited before me also. Sec tion 41 reads thus:-

(3.) In the present case, since a re gular suit had been filed before the trial court, it had, under the Code of Civil Procedure, power to consider and dispose of applications for injunctions and for vacating injunctions. There is no provi sion in the Arbitration Act which, in any way, prevents the court from disposing of such matters. A stay under Sec. 34 of the Arbitration Act does not affect the powers of the court which it possesses under the Code.