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Case Law Details

Case Name : Chat Aroma Vs Hamir Real Estate Pvt. Ltd (Punjab & Haryana High Court)
Appeal Number : CR No.574 of 2022 (O&M)
Date of Judgement/Order : 28/02/2022
Related Assessment Year :
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Chat Aroma Vs Hamir Real Estate Pvt. Ltd (Punjab & Haryana High Court)

Respondents had made a statement before the trial court qua not dispossessing the plaintiff, except in accordance with law, however, the respondents had specified the law which they would be following to get eviction of the petitioner. The said statements show that respondents had made these statements subject to seeking recourse under the agreement and the arbitration. Hence, by any means, it cannot be said that the respondents had waived of their right to seek arbitration and had shown any intention to submit it to the jurisdiction of the civil court qua the subject matter of the suit. Hence, even if the statements dated 20.07.2021 or 27.07.2021 are taken to be the first statement made by the respondents, then also, the intention of the respondents is clear that they had communicated to the court that they would take recourse to the provisions of the agreement between the parties and accordingly, to the arbitration proceedings.

Although the learned counsel for the petitioner has submitted that the respondents had made the first statement qua the subject matter of the dispute by making a statement that they would not dispossess the petitioner except in accordance with law, and that had the matter not been referred to the Lok Adalat the civil court could have disposed off the suit on the same day as well, hence, any application moved thereafter is prohibited under the provisions of Section 8 of the Arbitration Act, however, this court does not find any substance in this argument of the counsel for the petitioner. Rather, this court finds the reliance of the counsel for the respondents on the judgment in case of Booz Allen (supra) to be well placed. That judgment of the Supreme Court has amply clarified that any statement made at the stage of and for the purpose of opposition to the application under Order 39 Rules 1 & 2 or to prevent any interim order being passed by the court, could not be taken as a statement on the subject matter of the dispute. Hence, it is clear that in the present case the date of making first statement on the subject matter of the dispute had not yet come by the time the application under Section 8 of the Arbitration Act was filed by the respondents. Except the above mentioned statements made by the respondents, no other statement was ever made. Rather the time was taken to file written statement, which, if filed, could have been taken as a first statement. Anything said earlier to this was nothing but an attempt to prevent the interim order being passed by the court.

As mentioned above, any of the statements dated 20.07.2021 or 27.07.2021 does not show any intention of the respondents to waive of the recourse to the arbitral proceedings. Rather the statements are in the nature of re-enforcing their assertion that they would seek arbitration under the agreement between the parties. Besides the above said statement, the counsel for the petitioner has not been able to refer to any other statement of any kind, made by respondents, which could be interpreted by this court as the respondents waiving the intention to go in arbitration proceedings and submitting to the jurisdiction of the civil court. Merely because, on the statements referred above, the matter was sent by the trial court to the Lok Adalat for disposal, would not be conclusive to show that the above said expression was a willingness to the submission to the jurisdiction of the civil court. Again, this conclusion is reiterated by the fact that before the Lok Adalat as well; the respondents had not agreed to any claim made on the subject matter of the dispute and the matter was referred back to the court. Hence, it is clear that except above said statements, which reflect the intention of the respondents to take recourse to the arbitration proceedings, there is nothing on record to show that the respondents ever submitted to the jurisdiction of the court.

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