9911796707
TMI Blog1988 (4) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... vere Wall Gadi entered into between the parties, the petitioner as the distributor and the respondent as the producer. The agreement contained an arbitration section. It is stated that a sum of ₹ 3 lakhs was paid by the petitioner and acknowledged by the respondent earlier to the execution of the said agreement and therefore, the first installment payable under the agreement to the respondent of ₹ 3.40 lakhs was deemed to be adjusted. Under the aforesaid distribution agreement by 30th August, 1983, the respondent was to hand over the prints of the film by this date which he never did. In or about 1984 certain other moneys of about ₹ 3 lakhs were further advanced to the respondent. On 11th March, 1985 a further agreement w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es whereunder the respondent was to make payment of ₹ 6.50 lakhs and it was clear that the respondent had no desire to make payment and the respondent wrongly wanted to deal with the film and sell the distribution rights to somebody else thereby enjoying benefit of the same and also to deprive the petitioner of the amount of ₹ 6.50 lakhs. Civil suit was filed in February, 1986 for recovery of ₹ 6.50 lakhs with interest by the petitioner against the respondent. The written statement was submitted. An application was made under Section 20 in June, 1986. This application had been made later than the institution of the civil suit in the same High Court. The learned single Judge directed that the arbitration agreement to be fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned single Judge, had failed to pay ₹ 6,50,000 the aforesaid picture stood registered in the name of the petitioner herein. This registration could continue only by virtue of the earlier agreement dated March 19, 1983. The learned single Judge further found that the agreement dated 11th March, 1985 had come to an end and the earlier agreement dated 19th March, 1983 had revived. In this connection reference may be made to the observations of the Patna High Court in Babulal Marwari and Ors. v. Tulsi Singh and Ors . AIR 1940 Pat 121. Whether in any particular case there was a complete novation of a contract in the sense that the new contract replaced or substituted the old contract, could depend upon the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the parties. There being no impediment in filing the arbitration agreement which indubitably was subsisting at the relevant time when the High Court directed that the arbitration agreement be filed, that discretion should not be interfered with. Section 20 of the Arbitration Act provides as follows: 20. Application to file in Court arbitration agreement - (1) Where any persons have entered into an arbitration agreement before the institution of any suit with respect to the subject-matter of the agreement or any part of it, and where a difference has arisen to which the agreement applies, they or any of them, instead of proceeding under Chapter II, may apply to a Court having jurisdiction in the matter to which the agreement relates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The parties have applied for reference. The Division Bench has reiterated that the original agreement dated 19th March, 1983 which ceased to have effect and came to an end by the agreement dated 11th March, 1985, stood revived by virtue of the two letters dated 15th July, 1985 and 11th September, 1985 by the appellant. The High Court has confirmed that the said two letters were acted upon by the Motion Pictures Association. By letter dated 19/21 September, 1985 the Motion Pictures Association confirmed that in view of the failure of the producer to comply with his earlier letter regarding payment of ₹ 6,50,000 plus interest, the picture Savere Wali Gadi stood registered in the name of M/s. Raja Movies in the Motion Pictures Associat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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