DEWAN CHAND Vs. STATE OF J&K

JUDGEMENT

(1.) THIS is an application tiled by the defendant under S. 34 of the Arbitration Act for staying the suit and referring the matter in dispute to the arbitrator appointed by the parties under the arbitration agreement.

(2.) THE suit was filed by the plaintiff for recovery of Rs. 25000/ - due to breach of a contract committed by the defendant. The defendant appeared through the Advocate General on 15 -12 -60 and was allowed a months time to file his written statement. It appears, however, that the Advocate General filed a regular Vakalat Namma after getting instructions from his client on 7 -3 -1961 and on the same day he filed an application under S. 34 of the Arbitration Act. The plaintiff has also filed his objections to this application and the matter was argued before me on 7 -4 -1961. The original agreement between the parties which formed the basis of the suit has also been filed by the defendant which is marked Ex. D. in the case.

(3.) THE contention of the defendant is that as by virtue of agreement Ex. D the parties had agreed to refer their dispute to the Chief Engineer for arbitration, the court should stay the proceedings and refer the matter to the arbitrator, it is well settled that where parties agree that their disputes should be settled by arbitration, any of the parties has got a right to move the court to stay the suit provided the party concerned is willing to perform its obligation and has come up to the court before filing the written statement or before taking steps in the proceedings. It is conceded in this ease that the defendant has come up at the proper time, that is, before filing his written statement or before taking any effective steps in tire proceedings.