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2007 (1) TMI 612 - SC - Indian LawsMaintainability Of Suit - Arbitration Agreement - businesses of export - predecessor-in-interest - non-payment of the amount under the two dishonoured cheques - application dismissed opining that no dispute existed between the parties for reference to an arbitration - HELD THAT:- Admittedly, the appellant’s claim is not confined to the question regarding non-payment of the amount under the two dishonoured cheques. Thus, there existed a dispute between the parties. Had the dispute between the parties been confined thereto only, the same had come to an end. Appellant evidently has taken before us an inconsistent stand. If he was satisfied with the payment of the said demand drafts, he need not pursue the suit. It could have said so explicitly before the High Court. It cannot, therefore, be permitted to approbate and reprobate. Section 8 of the 1996 Act is peremptory in nature. In a case where there exists an arbitration agreement, the court is under obligation to refer the parties to arbitration in terms of the arbitration agreement. Hindustan Petroleum Corpn. Ltd. v. Pinkcity Midway Petroleums [2003 (7) TMI 493 - SUPREME COURT] and Rashtriya Ispat Nigam Limited [2006 (8) TMI 515 - SUPREME COURT] No issue, therefore, would remain to be decided in a suit. Existence of arbitration agreement is not disputed. The High Court, therefore, in our opinion, was right in referring the dispute between the parties to arbitration. Thus, there is no merit in this appeal which is dismissed accordingly with costs.
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