TMI Blog2017 (4) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... t had alleged breach of contract on the part of the Appellants in not making the entire payments for the services rendered to the Appellants. On the other hand, it is not in dispute that substantial amounts have been paid by the Appellants to the Respondent-company for the services rendered. Reason for non-payment of the balance amount as given by the Appellants is that the services rendered by the Respondent-company were not in terms of the agreement entered into between the parties and were deficient in nature. For this reason, even the Appellants have filed claims against the Respondent-company alleging that Appellant suffered losses because of the defective services provided by the Respondent - it cannot be said that at the time of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilise the services of the Respondent, i.e., knowledge based back and works and software development skills as well as professional services capabilities. In this behalf, an agreement dated 01.05.2009 was entered into between the Appellant-company and the Respondent whereby the Respondent agreed to provide the aforesaid services on certain remuneration, terms whereof were also stipulated in the said agreement. 4. According to the Respondent, the Appellant company was irregular in making payments. As on November, 2010, under the said agreement, for the services rendered by the Respondent, the Appellant-company had to make a total payment of USD 316,513 and as against this, the Appellant-company had made payment of USD 207,558.05. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement in respect to quality and timely providing of services and failed to discharge its contractual obligations which resulted in suffering of losses by the Appellant-company. On the other hand, the Respondent-company maintained that it had provided satisfactory and complete quality services as per the agreement and it is the Appellant-company which failed to make payment of the services provided as per the second agreement and, also, they did not discharge their obligation to pay the outstanding amount of USD 108,954.95 as well which was due in the first agreement. According to the Respondent, only two payments in the sum of USD 24,735 and USD 122,997 were made which were not complete payments in respect of the dues which were payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. 7. To record the events that have taken place thereafter and have a bearing on the present case, we may note that when the Respondent-company had refuted the allegations of the legal notice dated 20.06.2012 sent by the Appellants for appointment of the Arbitrator, the Appellant-company filed petition Under Section 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of an Arbitrator in this Court in terms of the arbitration agreement. Though this application was contested by the Respondent, ultimately, on a consensus being arrived at between the parties, orders dated 08.10.2014 were passed in the said arbitration application of the Appellants, appointing Mr. Justice Doraiswamy Raju, a former Judge of this Court, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion when prima facie criminal case was also made out against the Appellants. In the three question formulated, the High Court took the view that the Magistrate had conducted a proper inquiry Under Section 202 of the Code of Criminal Procedure before proceeding against the Appellants. 10. The moot question before us revolves around Question No. 1 which was formulated by the High Court and it is to be seen as to whether dispute between the parties is essentially of a civil nature or any case is made out against the Appellants for launching criminal prosecution under the aforesaid Sections. 11. After going through the allegations contained in the complaint and the material on record, we are of firm conclusion that the matter entirely pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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