RELIANCE INFRATEL LTD. AND ANR. Vs. BIHARI LAL

JUDGEMENT

(1.) THIS petition is directed against the order dated 20th April, 2010 whereby the application filed by the Defendant under Section 8 of the Arbitration and Conciliation Act, 1996 (here -in -after referred to as the Act) has been dismissed.

(2.) BRIEFLY stated the facts of the case are that the Respondent (here -in -after referred to as the Plaintiff) filed a suit praying that a decree for recovery of Rs. 1,00,000/ - plus arrears of rent amounting to Rs. 10,500/ - w.e.f. January 2009 onwards, be passed in his favour and against the Defendants. The Defendants, who are the Petitioners before this Court, filed an application under Section 8 of the Act, in which it was prayed that the parties had entered into a lease agreement which contains an arbitration clause and therefore, the suit may not be proceeded with and the dispute arising between the parties be referred to arbitration in terms of Clause 7 (e) of the agreement.

(3.) IT is correct that there is a blank space in this agreement which shows that the place of arbitration has not been fixed but it is more than apparent that the parties had agreed to refer all disputes arising between them to arbitration. Section 8(1) of the Act read as follows :