HINDUSTAN ANTI BIOTICS LIMITED Vs. CITY AGRO CENTRE

JUDGEMENT

(1.) This revision petition is directed against order dated 4.8.2004 vide which the learned Trial Court dismissed an application filed by the petitioner (defendant before the Trial Court-hereinafter referred to as the petitioner) under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the New Act) for the stay of the proceedings.

(2.) The respondent(Plaintiff before the Trial Court, hereinafter referred to as the respondent) had been appointed an agent by the petitioner and the terms and conditions governing the agency were contained in agreement dated 14.5.1999. The agency was terminated by the petitioner vide letter dated 6.3.2001. The respondent filed a suit for rendition of accounts. Ex. parte proceedings were ordered against the petitioner by the Trial Court. Those proceedings were set aside. Instead of filing the written statement thereafter, the petitioner opted to file the impugned application under Section 8 of the New Act. Reliance, in support of the application, was placed upon clause 26 of the Agreement dated 14.5.1999. That clause is reproduced as under for facilitating appropriate appreciation of the controversy:

(3.) The application was opposed by the respondent on the plea that it (application) was not maintainable as the agency itself stood terminated and the impugned agreement did not subsist thereafter. Yet another plea was that the application was incompetent as the petitioner had already taken steps in the proceedings by seeking a number of adjournments for filing of written statement. There was also a plea that the application under Section 8 of new Act is not competent in a suit for rendition of accounts.