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Judgment
Admit. Heard finally with consent of counsel for the parties.
The order dated 16th September, 2017 passed on an application filed under Section 8 of the Arbitration & Conciliation Act, 1996 [for short, "the said Act"] rejecting the same is the subject-matter of challenge in the present Civil Revision Application.
According to the applicants, an Agreement was entered into on 5th April, 2013 along with the non-applicant by which negotiations were to be held for compromising a proposal with the secured lender - State Bank of India. On such negotiations being successful, the applicants were to receive Success Fees of Rs.25,00,000-00. The said agreement contained a clause for referring disputes to arbitration. As the negotiations were successful, the applicants demanded the Success Fees from the non-applicant. On the same not being paid, the applicants filed a Summary Suit at the City Civil Court, Mumbai. In those proceedings, the non-applicant put forth the aforesaid agreement along with the arbitration clause as defence. On that basis, those proceedings were referred for arbitration.
Subsequently, the non-applicant filed a suit seeking recovery of Rs.4,56,124-00 from the applicants. On being noticed, the applicants relying on the same agreement filed an application under Section 8 of the said Act. By the impugned order, that application has been rejected.
Heard respective counsel for the parties. Shri Salunke, learned counsel for the non-applicant on instructions submits that the non-applicant is willing to go before the Arbitrator for adjudication of the claim made by the non-applicant in Regular Civil Suit No. 1354 of
2016. Considering this statement made on behalf of the non-applicant,
the following order is passed:-
[a] The order dated 16th September, 2017 passed below Exh.13 in Regular Civil Suit No. 1354 of 2016 is set aside. The application filed below Exh.13 is allowed and the proceedings in Regular Civil Suit No. 1354 of 2016 are referred for arbitration. Needless to mention that these arbitration proceedings would be the same which would be undertaken pursuant to orders in Summary Suit No. 124 of 2015.
[b] The respective contentions of the parties are kept open.
[c] As a result of this order, the proceedings in Regular Civil Suit No. 1354 of 2016 are deemed to have come to an end.
The Civil Revision Application is allowed in aforesaid terms with no order as to costs.