VISHAL RETAIL LTD Vs. ACHHAR SINGH BHUMBER

JUDGEMENT

(1.) In this writ application, Petitioners have assailed legality of order dated 8.1.2009 passed by learned Civil Judge, (Senior Division), Jeypore in I.A. No. 24 of 2009, arising out of C.S. No. 53 of 2009, by which their application under Section 8(1) of the Arbitration and Conciliation Act, 1996 (for short 'the Act') was rejected.

(2.) Petitioners are Defendants and opposite parties are Plaintiffs in the suit. The suit has been filed for realization of security deposit and arrear rent alongwith interest and cost. Plaintiffs' case is that in terms of agreement in the Memorandum of Understanding dated 2.7.2008 (for short 'the MOU') Defendants took on lease the suit property for a period of ten years in order to run a retail show room on payment of rent at the rate of Rs. 18/- per sq. feet per month. Show room over the suit land was constructed by the Plaintiffs as per the specification of Defendants. Defendants occupied and used the building without payment of security deposit and monthly rent. Plaintiffs wrote letters to the Defendants in response to which Defendants issued letter dated 13.6.2009 stating that agreement has been terminated.

(3.) On their appearance Defendants filed application under Section 8(1) of the Act on 28.10.2008. Thereafter, written statement was filed on 14.12.2009. Defendants' prayer for amendment of written statement was allowed by order dated 3.5.2010. P.W. 1, examined on behalf of Plaintiffs on 22.9.2010, was partially cross-examined by Defendants on 24.9.2010.