MILIND AND ORS. Vs. PRAMOD

JUDGEMENT

(1.) Admit. Heard finally by consent of the learned Advocates appearing for the parties.

(2.) The respondent/plaintiff-Pramod s/o Deshraj Budhraja has filed Summary Civil Suit No. 108 of 2015 under Order XXXVII of the Code of Civil Procedure on 10-8-2015 for a decree in the sum of Rs. 3,51,26,250/- along with future interest at 21% per annum compounded quarterly from the date of filing of the suit till its payment, against the appellant-defendants, alleging that the defendants had issued four cheques dated 25-2-2015, 25-3-2015, 25-4-2015 and 25-5-2015 for an amount of Rs. 1,00,00,000/- each in favour of the plaintiff to discharge their liability, and all the four cheques were dishonoured due to insufficient funds. The first cheque dated 25-2-2015 was presented on 26-2-2015, and upon its dishonour, it was returned to the defendant No. 1, who made the payment of Rs. 70,00,000/- and assured to make the balance payment of Rs. 30,00,000/-, which he has failed to make. The other three cheques were dishonoured on 13-6-2015 upon presentation, and no payment has been made. Thus, the claim was for the principal amount of Rs. 3,30,00,000/- with interest at the rate of 21%. The parties shall hereinafter be referred accordingly to their status as the plaintiff and the defendants.

(3.) In response to the suit summons, the defendants at the very first opportunity produced an arbitration agreement dated 9-4-2014 along with an application Exhibit 23 filed under Section 8 of the Arbitration and Conciliation Act, 1996 read with Section 9-A of the Code of Civil Procedure on 30-9-2015 for referring the matter to the Arbitrator named therein. The plaintiff filed his reply on 7-10-2015, opposing this application. The Trial Court has, by an order dated 27-10-2015, rejected the application at Exhibit 23 and hence the defendants have approached this Court by filing this appeal under Section 37(1) of the Arbitration and Conciliation Act.