MOMENTUM CONSULTING PVT. LTD. Vs. SAFFRON INDUSTRIES LTD.

JUDGEMENT

(1.) Admit. Heard finally with consent of counsel for the parties.

(2.) The order dated 16th September, 2017 passed on an application filed under Section 8 of the Arbitration & Conciliation Act , 1996 [for short, "the said Act"] rejecting the same is the subject- matter of challenge in the present Civil Revision Application.

(3.) According to the applicants, an Agreement was entered into on 5th April, 2013 along with the non-applicant by which negotiations were to be held for compromising a proposal with the secured lender - State Bank of India. On such negotiations being successful, the applicants were to receive Success Fees of Rs.25,00,000-00. The said agreement contained a clause for referring disputes to arbitration. As the negotiations were successful, the applicants demanded the Success Fees from the non-applicant. On the same not being paid, the applicants filed a Summary Suit at the City Civil Court, Mumbai. In those proceedings, the non-applicant put forth the aforesaid agreement along with the arbitration clause as defence. On that basis, those proceedings were referred for arbitration.