GRAVISS FOODS PRIVATE LIMITED Vs. ICE CREAM GARDEN

JUDGEMENT

(1.) By way of instant appeal, the appellant has assailed order dtd. 18/4/2016 passed by learned Single Judge in OMP No. 221 of 2015 in Civil Suit No. 16 of 2015, whereby the application of appellant filed under Sec. 8 of the Arbitration and Conciliation Act, 1996 (for short "1996 Act") has been rejected.

(2.) Brief facts necessary for adjudication of this appeal are that respondents herein have filed a suit for recovery of Rs.60,00,000.00 on account of damages against the appellant herein. The suit was registered as Civil Suit No. 16 of 2015 in this Court. The appellant/defendant filed an application under Sec. 8 of 1996 Act in Civil Suit No. 16 of 2015 seeking reference of the matter to arbitration, basing its claim on an arbitration clause allegedly existing in an agreement between the parties. Respondents/plaintiffs resisted the application and finally learned Single Judge dismissed the application of appellant/defendant and held the suit to be maintainable.

(3.) Respondents/plaintiffs at the out set have challenged the maintainability of instant appeal. As per respondents/plaintiffs, order refusing to refer the parties to Arbitration under Sec. 8 of 1996 Act has been made appealable w.e.f. 23/10/2015, whereas the application under Sec. 8 of 1996 Act was filed by the appellant/defendant on 10/7/2015, therefore, the court proceedings out of which the instant appeal has arisen, had commenced prior to inclusion of right of appeal. By virtue of Sec. 26 of Act No.3 of 2016, the amendments made in 1996 Act have been made applicable prospectively.