SUDHANGSU BHATTACHARJEE Vs. RUPLEKHA PICTURES

JUDGEMENT

(1.) THIS appeal can be disposed of on a short ground. It is an appeal against a judgment and order of Bachawat J. dated 27-6-1952, by which the learned Judge, acting under Section 34, Indian Arbitration Act, directed further proceedings in a suit brought by the appellant to be stayed. He did so on the ground that the subject-matter of the suit lay within the ambit of an arbitration clause.

(2.) IN view of the ground upon which we are going to base our decision, it is not necessary to state the facts at any great length. It will suffice to" say that the appellant brought a suit for the recovery of a sum of Rs. 40,189-6-3 on the basis of an account stated which he annexed to his plaint. That account, according to him, had been signed and accepted on behalf of the respondent-firm by one of its partners. The plaint proceeded to state that the respondent-firm had failed and neglected to pay the amount or any part thereof in spite of demands and asked for a decree for the amount claimed as also the usual incidental reliefs.

(3.) IT is for a stay of that suit that the respondent-firm made an application under Section 34, Indian Arbitration Act. In para. 5 of the application it was stated that a suit had been brought "on the basis of the said Distribution Agreement referred hereinbefore", and the agreement set up is one dated 13-8-1949, more particularly described in para. 3 of the application. Except stating in general terms that the suit had been brought on the basis of the agreement, the respondent-firm did not disclose what its defence to the claim would be or what dispute it wanted to raise. Reference was, however, made to an arbitration clause contained in the agreement which, so far as is material, provides that the parties have agreed "to settle all disputes and differences arising out of this agreement by reference to arbitration". To the application for stay a copy of the agreement was annexed.