TMI Blog2023 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... tration clause, if the issue concerning cancellation is not mutually resolved, the same must be referred to arbitration. The only ground on which the High Court has interfered is that the adjudication pursuant to invocation of Section 31 of the Specific Relief Act is an adjudication in rem. However, in the case of Deccan Paper Mills Company Limited1, this Court has categorically held that it is impossible to hold that an action instituted under Section 31 of the Specific Relief for cancellation of an instrument is an action in rem. In view of the applicability of the arbitration clause to the dispute subject matter of the suit filed by the respondent, the learned Trial Judge was justified in passing an order under Section 8 of the Arbitr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il Procedure, 1908 (for short, CPC ). The application was filed on the ground that in view of the arbitration clause in the Development Agreement, the dispute ought to be referred to arbitration. There was a prayer made for referring the dispute to arbitration. The Trial Court rejected the plaint. The Trial Court also exercised power under Section 8 of the Arbitration and Conciliation Act, 1996 (for short the Arbitration Act ). The Trial Court directed the parties to refer their dispute to arbitration. In a revision application preferred by the respondent, the High Court has interfered and has set aside the order of the Trial Court. SUBMISSIONS 3. The learned counsel appearing for the appellant pointed out that the High Court re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the parties. In case of disputes not resolved by mutual discussions, the same shall be referred to the arbitration in accordance with the provisions of the Arbitration and Conciliation Act 1996. The disputes shall be referred to the mutually agreed arbitrator within from the cause of action. The award of the arbitrator shall be binding and final on both the parties. (emphasis added) 7. The dispute, whether the Development Agreement stands cancelled or whether the agreement can be lawfully cancelled, is a dispute arising out of or in connection with the Development Agreement. Therefore, as per the arbitration clause, if the issue concerning cancellation is not mutually resolved, the same must be referred to arbitration. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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