BHOPAL PAPERS AND BODARS LIMITED Vs. PRAKASH CHANDRA

JUDGEMENT

(1.) Head Shri C.L. Yadav, for the applicant and Shri S.J. Dhanji for the non-applicant.

(2.) The applicant is aggrieved by the order dated. 27.6.1991 passed by the trial court whereby it rejected an application wider sections 31 and 32 of the Arbitration Act (for short "the Act") filed by the applicants who were defendants in the suit filed by the non-applicant herein for recovery of Rs. 1,01,000/-. The suit was filed on 14.9.1990 and a notice was served on the defendant (applicant herein) on 20.9.1990. On that date the defendants complained that they did not receive the copy of the plaint and the application etc. and on 25.9.1990 that copy as supplied to them. Thereafter the case went on an interim application for injunction and the applicants filed an application under Sections is 31 and 32 of the Act on 4.10.1990. It was contended that the court had no jurisdiction to entertain the suit by virtue of Section 32 of the Act and it was prayed that the suit be dismissed. The trial court rejected the application by the impugned order holding that the suit was not barred by Sections 31 and 32 of the Act. This is the order under challenge before me.

(3.) So far as Section 31 and 32 are concerned, they do not seem to be applicable to the case. Section 31 of the Act relates to the jurisdiction of the Court which can entertain the application under the Act. It does not relate to the filing of the suit in a court. Section 32 of the Act bars a suit for a decision upon the existence, effect, the authority of an arbitration agreement or award. It also provides that no arbitration agreement or award shall be enforced set aside amended modified or in any way affected otherwise than as provided in this Act. It is therefore, clear that Section 32 of the Act does not create a bar against the suit for recovery of money on the basis of an agreement in which resolution of dispute arising out of an agreement is provided through arbitration. The revision application, has therefore, no force. It is dismissed. There shall however be no order as to costs.