KOPPERS INDIA PVT LTD Vs. BAL RAJ CHAWLA

JUDGEMENT

(1.) THIS appeal arises from the judgment and order dated 23rd August, 1974 of Sabyasachi Mukharji, J. passed in an application under Section 34 of the Arbitration Act, 1940. The learned Judge has by an order stayed the suit, being Suit No. 530 of 1970 filed by the appellant herein, in terms of prayer (a) of the petition. Regarding the defendants Nos. 2 and 3 the learned Judge ordered that the stay, as against the said defendants 2 and 3 was to be operative only during the pendency of the arbitration proceeding between the petitioner and the respondent No. 1 and it was only after the completion of the said arbitration proceeding that the respondent No. 1 would be at liberty to proceed with the suit herein being No. 530 of 1970 as against the said two defendants.

(2.) THE matter arises out of a sub-contract which was sought to be given in favour of the respondent No. 1 Balraj Chawla by and on behalf of the appellant herein. THEre were two contracts and the second contract provided the following arbitration clause :

(3.) THE question for consideration here is about the scope and ambit of the arbitration agreement in relation to the disputes as raised in the plaint filed on behalf of the appellant. We have considered the plaint very carefully and to our mind, the disputes raised therein are not covered by the arbitration clause contained in the contract. THE disputes raised in the plaint relate to the validity and the existence of the contract itself. That can certainly not come within the scope of the arbitration clause agreed to by and between the parties herein. It is not so wide as to cover the disputes as raised in the plaint.