COUNTRYSIDE BUILDERS Vs. RAJESH KUMAR BANSAL

JUDGEMENT

(1.) UNDER challenge in this appeal filed under Section 12 of the Delhi High Court Act (as applicable to the State of Himachal Pradesh) read with Clause 10 of the Letters Patent is the judgment dated 23rd July, 2004 passed by a learned Single Judge of this Court rendered in two miscellaneous applications, being OMPs No. 179 and 195 of 2004 arising out of Civil Suit No. 8 of 2004. By the aforesaid impugned judgment, the learned Single Judge dismissed both the aforesaid applications after rejecting the prayer of the appellants that the Court should, in terms of Section 8 of the Arbitration and Conciliation Act, 1996 (1996 Act, for short) refer the parties to arbitration.

(2.) BRIEF facts leading to the filing of the appeal may be summarized as under.

(3.) THE arbitration agreement upon which the appellants sought reliance in filing the above referred applications under Section 8 of the 1996 Act is contained in Clause 12 of the Deed of Partnership which admittedly has been executed by and between the parties. Clause 12 reads thus: Any dispute that may arise amongst the partners pertaining to the affairs of partnership shall be referred to the arbitration of arbitrator whose decision shall be final and binding on the partners. Arbitrator shall be chosen mutually by both the partners. However, jurisdiction of the civil Court shall not be ousted.