CHANDRASEKHAR RAO M Vs. FORTIS FINANCIAL SERVICES LTD

JUDGEMENT

(1.) This writ petition is directed against the judgment and order dated 20-10-2000 passed by a learned Single Judge of this Court whereby and whereunder a reference in relation to the disputes and difference between the parties had been referred for arbitration to a former Judge of this Court.

(2.) Before adverting to the question involved in this writ petition, the facts of the case may be noticed. An agreement was entered into by and between the respondents 1 and 2 herein and in terms whereof they had agreed to subscribe and the first respondent agreed to allot certain number of shares for consideration on the terms and conditions laid down therein. The 1st respondent alleged that it forwarded a Demand Draft bearing No. 024343 for a sum of Rs. 25 lakhs together with a covering letter dated 28-4-1995 to the 2nd respondent herein towards the value of the 50,000 equity shares, but, contrary to the terms and conditions of the subscription agreement, it did not take any steps to bring out the public issue of equity shares nor did it get the share of the company listed on OTCEI. In the aforementioned situation, clause 7.1 (a) of the Subscription Agreement was sought to be invoked. It stated that although the 2nd respondent agreed to refund the amount to the 1st respondent, in terms of clause 7.1 (a), but such assurances had not been implemented.

(3.) The said agreement contains an arbitration agreement, being Article IX therein, which reads thus: Article IX: Disputes: