Law: Arbitration Act, 1940

Section: 34

Law: Arbitration Act, 1940

Section: 34

Specific Relief Act (I of 1877)-------S. 12---Arbitration Act (X of 1940), S.34---Suit for specific performance of agreement and recovery of amount---Agreement containing an arbitration clause---Stay of suit, application for---Plaintiff's plea was that before filing of suit, defendant had refused for amicable settlement, thus, was not entitled to ask for referring dispute to arbitration---Validity---Plaint showed existence of dispute between parties regarding settlement of plaintiff's share in land and completed and ongoing projects---Defendant's refusal to accept plaintiff's offer of amicable settlement could not be equated with arbitration as plaintiff in his offer had not appointed Arbitrator---Parties for resolving dispute between them had agreed to a mechanism, which could not be bypassed by filing suit---Dispute between parties was covered by agreement, thus, plaintiff was required to ask for arbitration before approaching Court---Defendants after receiving notice of suit without participating in proceedings had filed such application showing their willingness to refer dispute to arbitration---Suit was stayed in circumstances. Mahmood Abbas for Plaintiff. Muhammad Masood Khan for Defendants Nos.1 to 5. ORDER NADEEM AZHAR SIDDIQI, J.---By these applications the defendants Nos. 1 to 5 have prayed for stay of suit and to refer the matter for arbitration in terms of the agreement, dated 15-12-1994. The plaintiff has opposed the applications by filing counter-affidavit. The defendants have filed their affidavit-in-rejoinder to the counter-affidavit of the plaintiff. Learned counsel for the defendants submit that admittedly the claim of the plaintiff is arising out of the agreement dated 15-12-1994 in respect of sale of plaintiff's shareholding in defendant No.5. He refers to clause (11) of the agreement, dated 15-12-1994 which provides arbitration between the parties. He further submits that the dispute between the parties is of such nature which can be referred to the arbitration and suit in view of arbitration clause in the agreement cannot proceed. Learned counsel apart from other reported cases had relied upon the following reported cases:--- (1) Dar Okaz…

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