The division judge bench of the Tripura High Court held that the language of Section 8 of the A & C Act is very clear, and it casts upon an obligation upon the parties to the agreement to refer any of their disputes to the Arbitrator.
Brief facts
The factual matrix of the case is that the suit for recovery of Rs.1,27,07,727/- along with interest @18% per annum was instituted by the Plaintiff. Later on, when the summons and copy of the plaint were issued, the written statement was filed by the defendant and the charges were framed. Furthermore, the learned trial judge had found that there is a clear arbitration clause in the Partnership Deed entered into between the plaintiff and defendant no.1 and held that since there is an Arbitration Clause in the Partnership Deed, it is the obligation of the parties to exhaust the remedy mentioned in the said agreement. Aggrieved by this, the appeal is filed in order to challenge the judgment of the learned civil judge.
Contentions of the Appellant
The appellant submitted that the judgment passed by the learned civil judge is not sustainable in law as under Subsection (2) of Section 8 of the Arbitration and Conciliation Act, 1996, the defendant at the very first instance had to raise the issue that there was an Arbitration Clause in the agreement itself, which the defendant no.1 failed to raise.
Contentions of the Respondent
The Respondent submitted that as per the object and spirit of the A & C Act, it is the duty of the parties to exhaust the remedy in the partnership deed, irrespective of filing any application under Sub-Section (2) of Section 8 of the A & C Act.
Observations of the court
The Hon’ble court observed that the plaintiff brought the instant money claim despite being fully aware that the Partnership Deed has an arbitration clause. The Partnership Deed itself contains terms that the plaintiff has breached. It is extremely evident from the language of Section 8 of the A & C Act that the parties to the agreement shall address any disputes to the Arbitrator.
Based on these considerations, the court was of the opinion that there exists no infirmity in the judgment passed by the learned civil judge. The court affirmed the judgment passed by the learned civil judge.
The decision of the Court
With the above direction, the court disposed of the appeal.
Case Title: Sri Siddhartha Nag V. Sri Arijit Bhattacharjee
Coram: Hon’ble Mr. Justice Arindam Lodh and Hon’ble Mr. Justice S.D. Purkayastha
Case No.: RFA 11 of 2022
Advocates for the Petitioner: Mr. D. Bhattacharjee, Sr. Advocate Mr. Samar Das, Advocate Mr. S. Saha, Advocate
Advocates for the Respondent: Mr. DC Roy, Advocate Mr. S. Bhattacharjee, Advocate
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