STANDARD BATTERIES LTD Vs. CASINGS (INDIA) PVT. LTD

JUDGEMENT

(1.) THIS is a suit under Section 20 of the Arbitration Act, 1940 (hereinafter called 'the said Act') asking that the arbitration agreement between the parties be filed in Court and that the dispute between the parties be referred to an arbitrator to be appointed by the Court.

(2.) ON August 28, 1973 an agreement was entered into between the parties which recited that the plaintiffs had offered to provide technical know -how and assistance to the defendants for the procurement of equipment and its installation and commission and to supply technical data and process details for the manufacture by the defendants of containers and covers for batteries. The said agreement provided that the entire production of containers and covers by the defendants would be purchased by the plaintiffs upon the terms and conditions therein contained. The agreement was, in the first instance, to remain in force for ten years. Clause 6 of the said agreement provided as under: In the event of any dispute or difference of opinion between STANDARD AND CASINGS arising out of or in connection with this Agreement or with regard to the performance of any obligations hereunder by either party, such dispute shall be settled amicably by negotiations. Any dispute which will not be amicably settled by negotiation between the parties shall be referred to arbitration under the Indian Arbitration Act.

(3.) THE defendants have filed a written -statement in which they contend: that the suit has been filed without proper notice, that the disputes between the parties were not crystallised when the suit was filed and that this Court has no jurisdiction to entertain the suit because it relates to a dispute about the performance at Ernakulam of the said agreement.