ROURKELA STEEL PLANT Vs. ASSOCIATED CEMENT COMPANIES LTD

JUDGEMENT

(1.) HEARD the parties and with their consent this appeal is disposed of at the stage of hearing under Order 41 Rule 11 of the Code of Civil Procedure.

(2.) THE plaintiff -respondent no. 1 filed Money Suit No. 59 of 1994 in the court of the Subordinate Judge, Patna, against the defendants -appellants, seeking a decree for a sum of Rs. 12,70,658.06 paise, as per account shown in Schedule I to the plaint. The defendants appeared in the suit and on 5.7.1995 filed a petition under Section 34 of the Arbitration Act, 1940, contending, inter -alia, that the suit was not maintainable and the parties were obliged to approach the named arbitrator for adjudication of the disputes, if any. A prayer, therefore, was made to stay the suit, till adjudication by the arbitrator.

(3.) IN their rejoinder dated 22.1.1996, the plaintiffs denied to have entered into or signed such agreement containing an arbitration clause, nor they were bound by it nor the provisions of Section 34 were attracted.