FOREST CO J&K Vs. STATE OF J&K

JUDGEMENT

(1.) IN this suit, the defendant who was summoned in this court has made application under section 34 of the Arbitration Act wherein he has submitted that as the matter in controversy between the parties arises out of and relates to the subject matter of the agreement dated 22 -3 -1960 executed by the parties to the suit, therefore the suit be stayed and parties referred to arbitrator pursuant to Clause 44 of the agreement which provides that every dispute which may at any time arise between the parties in respect of the agreement or the subject matter thereof shall be referred to the Chief Conservator of Forests unless he is a party to the agreement in which case the dispute shall be referred to the Government whose decision there on shall be final and binding on both the parties. It is pointed out that the parties are bound to settle their dispute through arbitration as envisaged in the agreement itself. Keeping in view the nature of the dispute between the parties the ends of justice also demand that the matter be referred to Arbitration. The defendant was at all material times and is still ready and willing to do all things necessary for the proper conduct of the arbitration as contemplated under the agreement entered into by the parties. It is therefore, prayed that no further proceedings in the suit be held and the matter in dispute between the parties be referred to arbitration in accordance with the terms and conditions of the agreement. The agreement in original has been filed in the case,

(2.) THE plaintiff has filed his objections to this application. In his objections he has stated that there is no arbitration clause as such in the agreement and therefore the application does not lie, that the Chie Conservator of Forests has taken decision in the matter and therefore he cannot be an arbitrator in the case.

(3.) I have heard the arguments in the matter raised before me. It is not denied that the dispute out of which the present suit has arisen in the respect of the agreement and the subject matter thereof and as such the only question to be considered is the application of section 3 4 of the Arbitration Act This Section provides that : - "Where any party to an arbitration or any person claiming under him commences any legal proceedings against any other party to the argument or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings may at any time before filing a written statement or taking any other steps in the proceedings, apply to the judicial authority before which the proceedings are pending to stay the proceedings and the authority if satisfied may make an order staying the proceedings "