LINDSAY INTERNATIONAL PRIVATE LIMITED Vs. LAXMI NIWAS MITTAL

JUDGEMENT

(1.) The issue in this application for reference of the dispute to arbitration, is whether the dictum of the Supreme Court in Sukanya Holdings (P) Ltd. v. Jayesh H. Pandya; (2003) 5 SCC 531 - non-permissibility of bifurcation of subject-matter or causes of action in the suit - should be considered by a court in an application under sec. 8 of The Arbitration and Conciliation Act, 1996, as amended in 2016.

(2.) The present application for reference is of Vesuvius India Ltd., the defendant no. 39, in the suit filed by Lindsay International Private Limited and its majority shareholders and directors.

(3.) Lindsay has filed the suit for a decree for specific performance of a pre-incorporation agreement against the defendant nos. 1-38 and for specific performance of a non-competition agreement against the defendant nos. 39-42 and for declaration and injunction. The applicant Vesuvius - the defendant no. 39 in the suit - wants all claims, disputes and differences made by the plaintiff no.1 Lindsay against Vesuvius which are the subject matter of the suit to be referred to arbitration in terms of the arbitration agreement contained in Purchase Orders issued by Lindsay upon Vesuvius. The applicant also prays for stay of all further proceedings in the suit as against the applicant Vesuvius. The arbitration clause refers to Vesuvius as the 'Seller ' and Lindsay as the 'Buyer ' and covers any dispute, controversy or interpretation of any terms or claims arising out of or in connection with the Purchase Orders.