SUGAR DEALERS Vs. SITA RAM SRI GOPAL

JUDGEMENT

(1.) This is a first appeal from an order passed Under Sec. 34 of the Indian Arbitration Act.

(2.) The Plaintiff brought a suit on the basis of an agreement between the parties by which the Defendant agreed to supply sugar to the Plaintiff. A certain sum of money is alleged to have been paid as advance. The Defendant, according to the allegation in the plaint, failed to supply sugar and, therefore, this suit has been filed for the refund of the amount.

(3.) When summonses were received by the Defendants they filed an application Under Sec. 34 of the Arbitration Act for the stay of proceeding on the ground that there had been an agreement for reference to arbitration. This plea did not find favour with the learned Additional Civil Judge, Kanpur who heard the case and he came to the conclusion that there was no agreement at all in writing to refer the matter to arbitration and, therefore, Sec. 34 of the Arbitration Act did not apply. Secondly he held that even if there be an agreement, the provisions of Sec. 34 of the Arbitration Act were not mandatory and in the present case he did not see his way to stay the proceedings as the matter involved was purely a question of Law. Aggrieved with that decision the Defendants have come to this Court Under Sec. 39 of the Arbitration Act.