UNION OF INDIA (UOI) Vs. RATILAL R. TAUNK

JUDGEMENT

(1.) This is an application made by the Union of India for stay under Sec. 34 of the Arbitration Act of a suit, being suit No. 317 of 1965, filed by one Ratilal R. Taunk, a contractor, claiming that the contract No. 1/CKP/SPL/CRG/62 -63 was void from its inception by reason of mutual mistake of fact as to a matter of fact essential to the contract and alternatively, the contract was voidable by reason of misrepresentation made by the Union of India to the Plaintiff and the Plaintiff after knowledge of the same avoided the contract and accordingly claimed compensation of Rs. 10,25, 894.52 P.

(2.) The Respondent resisted the application for stay on the ground that the claim in this suit falls within the purview of the Arbitration Clause which is widely worded, in the alternative, that the grounds of mistake and misrepresentation have not been made bona fide and in the further alternative, that the question whether the agreement is void for reasons alleged in the plaint should be tried on evidence before an order is made under Sec. 34 on this application.

(3.) In the affidavit -in -opposition the Respondent Ratilal R. Taunk has also relied, besides the grounds made in the plaint, on the ground that there is no arbitration agreement subsisting between the parties and/or the same is void.