BOMBAY GAS COMPANY LIMITED Vs. PARMESHWAR MITTAL

JUDGEMENT

(1.) THIS petition is filed under section 8 of the Arbitration and Conciliation Ordinance, 1996 for referring the parties to arbitration for resolution of disputes and differences that have arisen between them.

(2.) BY an agreement dated 23rd December, 1986 between the petitioner and the respondents and two memoranda of understanding, the parties agreed to carry on the business in partnership in the firm name and style of M/s. Gas Property Developers as a single venture undertaking upon the terms and conditions mentioned in the agreement. The agreement contains an arbitration Clause and the same is reproduced hereunder :---

(3.) IT seems that disputes and differences have arisen between the parties in connection with the agreement dated 23rd December, 1986. The respondents have filed Suit No. 4430 of 1994 claiming various declarations and injunctions. In that suit, the petitioner filed Notice of Motion bearing No. 852 of 1995 for stay of the suit under section 34 of the Indian Arbitration Act, 1940. During the pendency of these proceedings, the Arbitration and Conciliation Ordinance, 1996 was brought into force on 25th January, 1996. Under section 8 of the Ordinance, where there is an existing arbitration agreement, the Court is required to refer the parties to arbitration. In pursuance of these provisions, the petitioner has filed the present petition for reference to arbitration. It may be stated that the said Arbitration and Conciliation Ordinance, 1996 has since become an Act of Parliament viz. Arbitration and Conciliation Act, 1996 (Act 26 of 1996 ).