AKASH FINANCIERS PVT. LTD. Vs. RAM SINGH KAPUR

JUDGEMENT

(1.) THIS is a revision petition against the order of the Additional District Judge, Amritsar dated 19th March, 1982.

(2.) BRIEFLY , the facts are that the Defendant was carrying on the business of chit fund at Amritsar. The Plaintiff became a member of group 'S' with a subscription of Rs. 300/ - per month on 1st February, 1972 for 60 months with a condition that in case he was declared lucky, he would be paid Rs. 18,000/ - in Chit No. S -56 allotted to him He regularly subscribed in the said group upto October, 1975 and thus paid a sum of Rs 13,500/ -. The Scheme matured on 31st January, 1977 It is alleged that the Defendant did not pay the amount with interest subscribed by him to which he was entitled according to the terms of the agreement. Consequently, he filed a suit for recovery of Rs. 17,900/ -.

(3.) THE application was opposed by the Plaintiff who inter alia pleaded that there was no agreement between the parties to refer the matter to arbitration and, therefore, the application was liable to be dismissed. The learned trial Court held that there was an agreement between the parties to refer the matter to arbitration and the Defendant was ready and willing to refer the matter in dispute to the arbitrator, and therefore, the suit was liable to be stayed. The Plaintiff went up in appeal before the Additional District Judge who reversed the finding of the trial Court and held that the Defendant did not give the correct date of arbitration agreement; that the application has not been filed by a properly authorised person and that in a suit filed by the Defendant against the Plaintiff an application under Section 34 of the Indian Arbitration Act had been dismissed on the ground that there was no arbitration agreement. Consequently, he accepted the appeal and dismissed the application. The Defendant has come up in revision against the order of the Additional District Judge to this Court.