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2011 (8) TMI 962 - MADRAS HIGH COURTDiversion of money - Arbitration clause - arbitration proceedings - joint venture agreement - the appellants initiated/participated substantially in various litigation proceedings. - held that:- in compliance of the order of the Company Law Board, the appellants offered to pay the amount of Rs. 545.52 lakhs as the sum refundable to N. Athappan in full settlement. The waiver is clearly implicit from the acts of the appellants, which indicates their intention not to proceed with the arbitration. On the facts and circumstances of the case and in view of the pitched battle of litigations between the parties, the learned single judge rightly held that there is a waiver by estoppel and that the arbitration clause in JVA has become "inoperative". Criminal proceedings - injunction - held that:- On the mere fact that OARC and ORE have included several causes of action, the prayer in respect of the JVA does not make it scandalous or frivolous. Nothing can be scandalous which is relevant for the determination of the suit. In our considered view, the learned single judge was not right in striking off the words "joint venture agreement dated January 30, 2004" including the investment of the second plaintiff in Cheran Enterprises P. Ltd., in the relief "A" to the plaint. In the light of our findings in O. S. A. Nos. 2 to 5 of 2009, the order of the learned single judge in Application No. 5848 of 2007 in C. S. No. 709 of 2007 is liable to be set aside and O. S. A. No. 258 of 2009 is allowed.
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