Law: Civil Procedure Code (V of 1908)

Section: 1

  Civil Procedure Code (V of 1908)--- ---O. XXIII, R.1---Money suit---Two claims arising out of two contracts---Claims could easily be segregated or separated---Claimant can give up part of its claims related to one of the contract. Civil Procedure Code (V of 1908)--- ---S.151.---Stay of proceedings---Initiation of arbitration proceedings---Challenge as to ---Pendency---Supreme Court in the meanwhile to save bar of limitation permitting claimants to continue legal proceedings in suit---Claimants filing suit---Merely because of filing suit by claimants proceedings of arbitration cannot be stayed---Arbitration Act (X of 1940), Ss. 34 & 35. AIR 1987 SC 643; AIR 1981 SC 2085; AIR 1971 SC 1; AIR 1964 Punj. 395; AIR 1960 Cal. 47 and AIR 1945 Bom. 497 ref. G. Ramaswami, Addl. Solicitor General, Mukul Mudgal, Advocate with him for Petitioner. Anil B. Diwan, Senior Advocate, D. N. Misra, M.P. Bharucha and S. J. Vajifdar, Advocate with him for Respondent. JUDGMENT SABYASACHI MUKHARJI, J.--This application for leave is from the decision of the Division Bench of the High Court of Bombay, dated 26th April, 1988. By the said decision the Division Bench summarily dismissed the appeal thereby affirming the order of the learned Single Judge of the High Court. On 12th January, 1950 the petitioner herein signed what has been treated as the first contract with the respondent for the supply of 5000 Mts. of Indian H.P.S. groundnut Kernels Javas (hereinafter referred to as the said goods) for the year 1979-80. The second contract in respect of the same was signed for 4000 Mts. on 3rd April, 1980. On 18th August. 1980 since 3100 Mts. of the remaining first contract arid total of 4000 Mts. of the second contract had not been supplied, the contract was extended for the balance quantity for the next crop season 1980-81. On 20th December, 1980 the petitioner informed the respondent not to nominate any vessels to load goods as they were unable to get necessary clearance from the Government. The petitioner on 27th January, 1981 sent a telex informing the respondent that the goods could not be exported on account of executive/ legislative ban on such exports. On 6th March, 1981 the…