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2021 (6) TMI 277 - Tri - Companies LawStay on present proceedings - reference of parties to Arbitration in light of mandate of Section 8 of Arbitration and Conciliation Act, 1996 - original agreement is executed but frustrated later on - performance of contract came to an end - Sections 241-242 of The Companies Act, 2013 - HELD THAT:- In case of, BRANCH MANAGER, MAGMA LEASING & FINANCE LTD. AND ANR. VERSUS SMT. POTHURI MADHAVILATA AND ANR.[2009 (9) TMI 592 - SUPREME COURT], it is decided that if the original agreement is executed but frustrated due to repudiation/frustration/breach etc., it is performance of contract that has come to an end, but contract if still valid, arbitration clause operates for the purposes of resolution of disputes - In the amendment in the Arbitration and Conciliation Act of the year 2015, the specific word is mentioned as 'shall'. The power of referral court can be exercised even if there is previous court judgment to the contrary. The court must refer parties to arbitration unless it thinks that a valid arbitration agreement does not exist. This matter can be referred to arbitration. The parties are at loggerheads since 2006 onwards and have probably approached every judicial forum to seek reliefs. We see that during the process some parties have left for heavenly abode, some have reached super-senior/senior citizen status and those recently getting involved in this unending litigation, are young generation, who should walk the road of living peaceful life rather than wasting time, energy and money on litigations, which can be resolved amicably. The parties are referred to arbitration as prayed for in the application.
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