UNION ROADWAYS PVT LTD Vs. VINAY CEMENTS LTD

JUDGEMENT

(1.) In this petition under Section 115 of the Code of Civil Procedure, the petitioner M/s. Union Roadways Pvt. Ltd. has challenged the order dated 8.6.1992 passed by the Asstt. to Deputy Commissioner, Shillong in Misc. Arbitration Case No. 78(T) of 1991 inviting the parties "to suggest name of arbitrator or to suggest modalities to make the appointment" for the purpose of referring them to arbitration.

(2.) I have heard Mr. B.N. Sharma, learned counsel for the petitioner and Mr. R. Choudhury, learned counsel for the respondent No. 3. None appeared for respondent Nos. 1 and 2.

(3.) The controversy precisely relates to claim and counter-claim of amount due between the parties out of contract entered into by M/s. Vinay Cements Limited, the principal Opp. party and M/s. Union Roadways (P) Ltd. on 8.12.1988 for transportation of materials from various places in India to the plant of M/s. Vinay Cements at Umrangshu in N.C. Hills District in the State of Assam and to Shillong in the State of Meghalaya. Para 22 of the agreement contains an arbitration clause which reads "The arbitration shall be as per Indian Arbitration Act and jurisdiction shall be Shillong". M/s. Union Roadways raised certain alleging non-payment of dues and served a notice through their counsel M/s. Murthi & Vasan vide letter No. M&V/UR/1 11/91 dated 5th March, 1991. In reply, the principal opposite party M/s. Vinay Cements Limited vide letter dated 26.4.1991 asked them (M/s. Union Roadways) to settle the account within one month. As there was no response, the principal opposite party (M/s. Vinay Cement) issued a notice under provisions of the Arbitration Act, 1940 on 8.6.1991 as was then in force. M/s. Union Roadways (P.) Ltd. vide letter dated 20.6.1991 termed the invocation of arbitration clause as illegal on the ground that there was no dispute at all.