KOTA STRAW BOARDS P LTD Vs. B GOPALDAS

JUDGEMENT

(1.) IN connection with the petition which has been filed by the three potitioners for the winding up of the Kota Straw Board (Private) Limited, Kota, hereinafter called 'the respondent Company', an application has been made by the respondent Company under Section 34 of the Arbitration Act for stay of the proceedings. The question for decision therefore is whether that application should be allowed

(2.) IT will be sufficient to state, for purposes of the present controversy, that the petition for winding up has been made with the allegation that the respondent Company is unable to pay its debts within the meaning of clause (e) of Section 433 of the Companies Act and that it is just and equitable that it should be wound up under clause (f) of that section. In substance, the petitioners have alleged that the Comapny should be deemed to be unable to pay its debts within the meaning of Section 434(1)(a) of the Companies Act. The respondent Company has, in its turn, made the aforesaid application under Section 34 of the Arbitration Act on March 25, 1968 and the question whether it should be allowed has arisen in these circumstances.

(3.) HAVING put aside argument of Mr. Lodha, I shall proceed to examine whether there was an arbitration agreement in the present case. Mr. Garg, learned Counsel for the respondent Company, has. in this connection, relied on paragraph 10 of the respondent Company's letter Ex. 2 dated Jan. 16, 1964. That paragraph, it is admitted, is similar in the case of all the petitioners, and reads as follows - - (10) That in case of any dispute arising between us, the matter may be referred to arbitration mutually agreed upon and acceptable by you and us.