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Issues:
1. Whether the suit is liable to be stayed under Section 34 of the Arbitration Act? 2. Whether the application under Section 34 of the Act adequately mentioned the dispute between the parties? Analysis: Issue 1: The plaintiffs filed a suit for accounts of a partnership, while the defendants sought a stay under Section 34 of the Arbitration Act based on a partnership deed clause. The trial Court favored the defendants, directing arbitration. The plaintiffs appealed, contending that the defendants' actions in the proceedings precluded arbitration. The court examined the orders and determined that mere adjournments for compromise did not signify a waiver of arbitration rights. Citing legal precedents, the court held that requesting adjournments did not signify participation in the suit proceedings. The court rejected the appeal, emphasizing that no concrete steps indicating participation had been taken by the defendants. Issue 2: The defendants' application under Section 34 of the Act lacked specific mention of the disputes between the parties, a crucial requirement for arbitration referral. The plaintiffs argued that the absence of dispute details in the application rendered it insufficient. The court analyzed the application and found it deficient in specifying the disputes, contrary to legal precedents requiring a clear indication of disputes for arbitration consideration. Referring to previous cases, the court emphasized the necessity of a pre-existing dispute for arbitration referral. As the application failed to fulfill this requirement, the court overturned the trial Court's decision, dismissing the application under Section 34 of the Act. The court ruled in favor of the plaintiffs, setting aside the judgment and denying the application for a stay under Section 34 of the Arbitration Act. In conclusion, the court allowed the appeal, overturned the trial Court's decision, and dismissed the application under Section 34 of the Arbitration Act. The court found that the defendants had not taken substantial steps in the proceedings to warrant a stay for arbitration. Additionally, the court emphasized the importance of clearly stating disputes in arbitration applications, as required by legal precedents. The judgment highlighted the necessity of meeting legal standards for arbitration referrals and upheld the plaintiffs' right to pursue the suit for partnership accounts.
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