Plaza Garments Vs. Textile Apparels - Court Judgment

Excerpt:
civil procedure code, 1908 - order 7 rule 11--rejection of plaint--by no stretch of imagination the application under section 9 of the arbitration and conciliation act can be placed at the pedestal of a suit or even substantive proceedings and as such the provisions of order 7 rule 11, cpc are not at all applicable. order 7 rule 11--rejection of plaint--when petition under section 9 of arbitration and conciliation act, 1996, unless and untill arbitration clause is invoked, it would not be necessary that the arbitration clause must be issued to the opposite party. ;by no stretch of imagination the application under section 9 of the arbitration and conciliation act can be placed at the pedestal of a suit or even substantive proceedings and as such the provisions of order 7 rule 11, cpc are not at all applicable. ;section 9 of the arbitration and conciliation act contemplated that there should be an intention of the party to get its disputes arbitered upon. merely a party does not notice the opposite party for appointment of the arbitrator does not mean that the aggrieved party has no intention to seek the redressal of the disputes by way of arbitration. ;in view of the aforesaid provision of law the instant application has no merit and is dismissed. - j.d. kapoor, j.1. this is an application under order 7 rule 11 cpc on behalf of respondent no.1 seeking rejection of the petition under section 9 of the arbitration act, 1996 on the ground the unless and until arbitration clause is invoked, the application under section 9 is not maintainable. provisions of order 7 rule 11 strictly pertain to the suits where the plaints are filed. the plaint can be rejected if it does not disclose a cause of action or where the relief claimed is properly valued but the plaint is wrong insufficiently stamped or the suit is barred by any law.2. by no stretch of imagination the application under section 9 of of the act can be placed at the pedestal of a suit or even substantive proceedings and as such the provisions of order 7 rule 11 cpc are not at all applicable.3. moreover the objection raised in the application as to its maintainability, is also of no substance as according to the respondent without giving notice to the respondent the petitioner cannot approach directly under section 9 of the arbitration act for seeking interim relief or directions.4. section 9 of the act contemplates that there should be an intention of the party to get its disputes arbitered upon. merely a party does not notice the opposite party for appointment of the arbitrator does not mean that the aggrieved party has no intention to seek the redressal of the disputes by way of arbitration. in a recent judgment in sundaram finance limited v. nepc india limited 1999 (1) sc 126 the supreme court has taken a categorical view that when the application under section 9 is filed and the proceedings have not commenced under section 21 of the act it would not be necessary that notice invoking the arbitration clause must be issued to the opposite party before an application under section 9 is made.5. in view of the aforesaid provision of law the instant application has no merit and is dismissed.6. the application stands disposed off.omp 75/97the pleadings are complete.7. list on 7th may, 2002.