LAHAR PUBLICITY SERVICE Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a revision by the defendant against the order by which its application under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter, to be referred to as 'the New Act') for referring the parties to arbitration in view of the arbitration agreement between the parties, has been rejected.

(2.) THE plaintiff filed the suit for recovery of Rs. 4,66,764/- from the defendant It was stated in the plaint that the defendant is an accredited agency appointed by the plaintiff for collecting advertisements for being telecast by the plaintiff. According to the plaintiff, an amount of Rs. 3,89,619/- is due from the defendant as telecasting charges. The plaintiff has also claimed interest at the rate of 18% per annum on this amount.

(3.) THE defendant submitted an application supported by an affidavit stating therein that there is an arbitration clause in the agreement dated 1-12-1999 and, therefore, the parties should be referred to arbitration in terms of the arbitration clause.