ACE ENTERPRISES Vs. R.K. ARORA AND ORS.

JUDGEMENT

(1.) The petitioner has filed this petition invoking the power of superintendence of this Court under Sec. 104 of the Constitution of Jammu and Kashmir read with Art. 227 of the Constitution of India to set aside the order dated 06.11.2013 whereby the learned Sub-Judge (CJM), Srinagar, has dismissed the contempt petition, alleging wilful violation of the ad interim court order dated 22.06.2011, filed by the petitioner against the respondents on the ground that proceedings initiated by any party in exercise of statutory right, cannot be construed as flouting of the order of the civil court or wilful or deliberate violation of the order.

(2.) Briefly put, the facts of the case are that in a suit titled M/s ACE Enterprises Vs. Union of India and others praying for multiple reliefs of declaration and of permanent injunction filed by the petitioner against respondent no. 1 herein and others, the defendants had made an application before the trial court on 17.05.2006 under Sec. 8 of the J &K Arbitration Act, 2002 for referring the parties to arbitration in view of clause 25 of the Agency Agreement for IBP stockist and Agency Agreement for sale of automotive grades of lubricants both dated 01.01.2006, and clause 32 of the Satellite Depot Contractor Agreement dated 30.09.1997. While the said application was pending consideration before the trial court, the defendants of their own, initiated arbitration proceedings on 25.05.2010, appointing respondent no. 2 herein as Arbitrator. On an application moved by the petitioner, the trial court on 22.06.2011 passed an ad interim direction staying the proceedings before the Arbitrator with regard to the matter titled M/s ACE Enterprises Vs. Union of India and Ors. The order passed by the learned trial court is quoted hereunder in to:

(3.) Subsequently, the defendants in the suit made an application before the Arbitrator on 04.11.2011 seeking recall of the order dated 24.06.2011 on the ground that the interim order dated 22.06.2011 passed by the civil court was in civil suit titled M/s ACE Enterprises Vs. UOI and others and that the Arbitrator had not to enter upon any dispute which was the subject matter in the suit. The Arbitrator, by order dated 16.09.2011, allowed the application, expressing the view that there was no direction to him to stay the proceedings in the arbitration proceedings.