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TMI Blog2016 (12) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... reaves Cotton are manufacturers of, inter alia, diesel engines. Respondent United Machinery and Appliances are manufacturers of diesel generator sets. An agreement containing arbitration clause was executed between them for supply of diesel engines by the appellant to the respondent for using the same in the diesel gensets. Arbitration clause contained in Article 10.1 of agreement dated 02.07.2007 (copy Annexure P-1) reads as under: - "10.1 Any dispute or difference whatsoever arising between the parties out of or relating to the construction, meaning, scope, operation or effect of this Agreement or the validity or the breach thereof shall be referred to a Sole Arbitrator to be appointed by Greaves. The decision of the Arbitrator shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Act, 1996 (for short "the 1996 Act"), in the suit seeking reference of the disputes between the parties forming the subject-matter of the suit, for arbitration, which is rejected by the High Court on the ground that the appellant has, by moving application for extension of time to file written statement, waived its right to seek arbitration. Hence, this appeal through special leave. 4. We have heard learned counsel for the parties. 5. Before further discussion, it is just and proper to refer to relevant provisions of law applicable to the case. Section 5 of the 1996 Act provides that notwithstanding anything contained in any other law for the time being in force, in matters governed by Part I, no judicial authority shall intervene e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard in the New Act in Section 8 (1), provision has been made to the effect that the party intending to go in for arbitration must do so in his "first statement on the substance of the dispute" and not later than that. In other words, only if in the first statement on the substance of the dispute he does not make such prayer that he is debarred from making that prayer later. Section 8(1) of the New Act is, thus, an Improvement upon the provisions of Section 34 of the old Act......." 8. In Rashtriya Ispat Nigam Ltd. and another v. Verma Transport Co. (2006) 7 SCC 275, interpreting the expression "first statement on the substance of the dispute", this Court has held as under: - "36. The expression "first statement on the substance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BI Homes Finance Limited and others (2011) 5 SCC 532, while dealing with the question, this Court, in paragraph 19 of the judgment, has laid down the law on the similar issue as under: - "19. Where a suit is filed by one of the parties to an arbitration agreement against the other parties to the arbitration agreement, and if the defendants file an application under Section 8 stating that the parties should be referred to arbitration, the court (judicial authority) will have to decide: (i) whether there is an arbitration agreement among the parties; (ii) whether all the parties to the suit are parties to the arbitration agreement; (iii) whether the disputes which are the subject-matter of the suit fall within the scope of arbitrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not constitute first statement on the substance of the dispute. It does not appear from the language of sub-section (1) of Section 8 of the 1996 Act that the Legislature intended to include such a step like moving simple application of seeking extension of time to file written statement as first statement on the substance of the dispute. Therefore, in the facts and circumstances of the present case, as already narrated above, we are unable to hold that the appellant, by moving an application for extension of time of eight weeks to file written statement, has waived right to object to the jurisdiction of judicial authority. 13. From the order impugned, it also reflects that before disposing of application under Section 8 of the 1996 Act th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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