9911796707
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Issues:
1. Interpretation of two agreements dated 11th March, 1985, and 19th March, 1983. 2. Validity and enforcement of the arbitration agreement. 3. Revival of the earlier contract dated 19th March, 1983. 4. Compliance with terms of the contract and registration of distributorship. 5. Application of Section 20 of the Arbitration Act, 1940. Analysis: Interpretation of Agreements: The case involved two agreements dated 11th March, 1985, and 19th March, 1983. The court found that the intention of the parties in the 1985 agreement was to supersede the earlier contract. However, the respondent failed to pay the agreed amount of Rs. 6.50 lakhs, leading to the cancellation of the 1985 agreement. The court held that the earlier agreement from 1983 was revived due to the non-payment by the respondent, as evidenced by correspondence and conduct of the parties. Validity of Arbitration Agreement: The Division Bench of the High Court confirmed that the arbitration agreement within the 1983 contract was still valid and enforceable. The court emphasized that the existence of a civil suit did not preclude the filing of the arbitration agreement. The court highlighted Section 20 of the Arbitration Act, which provides for the filing of an arbitration agreement before a court, ensuring the parties' rights to arbitration. Revival of Earlier Contract: The court determined that the failure to perform the terms of the 1985 contract did not automatically revive the 1983 contract. However, the petitioner's actions and communications indicated a fallback to the original 1983 contract, which was accepted by the respondent. This acceptance led to the revival of the 1983 contract, which contained an arbitration clause. Compliance and Registration of Distributorship: The Motion Pictures Association confirmed the registration of the film in the petitioner's name due to the respondent's failure to comply with payment terms. This confirmation was based on the petitioner's reliance on the 1983 contract. The court held that a valid and binding contract existed between the parties, which included the arbitration clause for dispute resolution. Application of Section 20 of the Arbitration Act: The court reiterated that the arbitration agreement in the 1983 contract should be filed for proper adjudication of the dispute. The Division Bench upheld the High Court's decision regarding the revival of the 1983 contract and the parties' rights to arbitration. The court dismissed the petition, affirming the correctness of the High Court's decision in the matter.
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