MP HOUSING BOARD Vs. NIRMAL SINGH SURI

JUDGEMENT

(1.) (26.04.2012) This revision is directed against the order dated 08.02.2007 passed in Regular Civil Suit No.396-A/2006 by the III Civil Judge, Class-I, Bhopal, rejecting the application of the petitioners made under Order 7 Rule 11 of the Code of Civil Procedure. This revision has already been admitted and an interim stay has been granted on 16.07.2007.

(2.) BRIEF facts giving rise to filing of this revision are that the respondent, who was a contractor of the petitioners, was given a contract to construct certain houses. The order in this respect was issued on 29.10.2005. In the agreement, there was an arbitration clause. Because of the alleged misconduct of the respondent, it was found that the construction made by the respondent was not up to the mark and, therefore, the order was issued by the petitioner Housing Board to cancel the registration of the respondent. It appears that certain arbitration proceedings were initiated by the respondent and an application under Section 9 of the 2 Arbitration & Conciliation Act, 1996 for grant of injunction was filed by the respondent before the VI Additional District Judge, Bhopal. The said application was rejected vide order dated 06.12.2006 passed in Arbitration Case No.67/2006. It appears that thereafter the respondent has approached the Court of III Civil Judge, Class-I, Bhopal by filing a suit for declaration and permanent injunction and in the said suit, the reliefs were claimed to the effect that the order passed by the petitioners restraining the respondent/plaintiff to act as a contractor be declared null and void. The further relief of permanent injunction was claimed by the respondent.

(3.) IN view of the aforesaid, the order passed by the Court below is not required to be interfered. However, the fact further remains that if there is an arbitration agreement, the suit itself would not be maintainable in case such a bar is created under the agreement. This particular objection is required to be raised by filing a written statement and denying other allegations made in the plaint. It would be better for the petitioners to file the written statement, raising all the aforesaid grounds and it will be open to the Court below to frame the issues on such pleadings and to try the issues simultaneously and give a finding.