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TMI Blog2014 (10) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Arbitral Tribunal. In fact, even the appellant understood it in the same way, till suddenly the 'U' turn arose. Appeal do not have any merit and is dismissed. - O.S.A.No.244 of 2014 and M.P.No. 1 of 2014 - - - Dated:- 28-10-2014 - Mr.Sanjay Kishan Kaul And MR. M.Sathyanarayanan, JJ. For Appellant: Mr.P.S.Raman, S.C. for Mr.Karthik Sundaram For Respondents: Mr.T.V.Ramanujan, S.C. Assisted by Mr.Kalyan Jhabakh, for M/s.Surana and Surana JUDGMENT (Judgment of the Court was delivered by The Hon'ble Chief Justice) The appellant filed the suit on the original side of this Court against the present two respondents and one V.Gurumurthy seeking recovery of a sum of ₹ 170,69,37,775/-, which includes principal and interest, calculated at 18% p.a., along with future interest. 2.The basis for the plaint is the transaction inter se the appellant and the respondents under the arrangement for import of Bullion administered by the Department of Commerce. The appellant imports Bullion from its various foreign suppliers on consignment basis and sells them to local customers at various places, under different schemes. These schemes are : a) Outright pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. Thus, the third defendant is sought to be blamed for the same, who, incidentally retired on 30.11.2010. 8.Some discrepancies in transactions are stated to have been detected by the Special Audit, post an internal audit. This Special Audit report was submitted by the Chartered Accountants. It is in view thereof that the appellant alleges fraud having been practised on the appellant. 9.It would be relevant to note that in para 29 of the plaint, this fraud is alleged to have been practised especially in regard to overstated fixed deposits in Union Bank of India. On a subsequent query, the Union Bank of India informed the appellant that the statement issued by the Officer showing deposits held by the appellant as on 31.03.2009, was overstated by ₹ 40.37 crores. Surprisingly, Union Bank of India sought to wash its hands off by saying that it is the third defendant who approached the branch and pressed for confirmation on urgent basis and the branch-head had made a random verification of deposits in the core banking system and gave confirmation of list prepared by the appellant ! The further allegation is that the third defendant sought to prevent detection / discovery of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omer' out of or relating to the construction, meaning, scope, operation or effect of this sale purchase agreement or the validity or the breach thereof shall be settled through arbitration in accordance with Rules of Arbitration of the Indian Council of Arbitration and the Award made in pursuance thereof shall be binding on the parties. The venue of arbitration shall be Chennai. 13.In view of the aforesaid clause, it was pleaded that the dispute between the parties is one of accounting and the appellant should not be permitted to wriggle out of the mode of resolution of disputes by arbitration. 14.The stand of the first two defendants / respondents herein found favour with the learned Single Judge as per the impugned judgment and decree dated 30.06.2014, which is sought to be assailed in the present appeal. 15.We have heard learned Senior Counsel for the appellant at length. 16.There is really no dispute about the existence of arbitration clause. If one may say, there is a dual plea raised by the appellant: a) that in view of the allegations of fraud, which are really serious in nature and the chargesheet having been filed, this is an appropriate case where trial s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he suit has come to be filed. 20.Insofar as the two pleas raised by the learned Senior Counsel for the appellant is concerned, the findings of the learned Single Judge are that the allegations of fraud are really against the third defendant and not the first two defendants / respondents. In this behalf, certain averments in the plaint have been referred to in the grounds of appeal to contend that there are allegations of fraud even against the first two defendants / respondents. 21.On a perusal of the plaint, we find no infirmity in the findings of the learned Single Judge. A plaint is not to be read like a statute. The plaint has to be read as a whole. The allegation is really against their employee and in accounting dispute inter se the parties, and by impleading the third defendant, the appellant cannot be permitted to defeat the arbitration clause. At request of learned Senior Counsel for the appellant, we do clarify that naturally what has been observed by the learned Single Judge is for purposes of deciding the application under Section 8 of the said Act and would not, in any case, affect the merits of controversy before the Arbitral Tribunal. 22.Insofar as the aspec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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