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TMI Blog2018 (7) TMI 2114X X X X Extracts X X X X X X X X Extracts X X X X ..... rivate Limited, which is admittedly a company incorporated pursuant to the said agreement. As regards Section 7 of the Arbitration and Conciliation Act, 1996, obviously there is no dispute with what is stipulated therein, but in the opinion of this Court, in view of what has been observed herein above, M/s IPROSUGAR Engineering Private Limited would still be bound by the agreement as an agreement between the parties, once the reliance by the said company, in respect of the relief claimed by it in the civil suits filed by it, is in terms of that very agreement dated 14.06.2006. Petition dismissed. - Civil Revision No.548 of 2016, 6163 of 2015 - - - Dated:- 19-7-2018 - HON'BLE MR. JUSTICE AMOL RATTAN SINGH Mr. Anuj Raura, Advocate, for the petitioner in CR No.548 of 2016 and for the respondent in CR no.6163 of 2015. Mr. Amit Parashar, Advocate for the petitioner in CR no.6163 of 2015 and for the respondents in CR no.548 of 2016. ORDER Amol Rattan Singh, J (Oral) The issue in these two revision petitions is as to whether or not the two suits filed by the petitioner in CR no.548 of 2016, i.e. M/s IPROSUGAR Engineering Privat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat as per the aforesaid cooperation agreement (Annexure A-1 annexed with CM no.26197-CII of 2017), clause 1 states as follows:- 1. Incorporation of JVC The partners shall take necessary steps to incorporate the JVC and to bring the JVC under this cooperation agreement through the deed of adherence as specified in Annexure 4. Annexure 4, referred to hereinabove, is the format for a Deed of Adherence , by which the new joint venture company (JVC) which was to be incorporated in terms of clause 1, would adhere to the said terms of the deed, as also the agreement dated June 14, 2006, with both documents also binding on M/s Spray Engineering Devices Ltd. 2. What is important to be noticed is that in the aforesaid deed of adherence as was to be entered into by the new joint venture company to be created and M/s Spray Engineering Devices Ltd., clause 2 reads as under:- 2. The [name of JVC] /transferee hereby convenants and agrees with each of the Beneficiaries and the Company that as from the date of its incorporation/transfer, it will observe and discharge all the terms and conditions of the Agreements which are applicable to it in all respects as if it had been origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention he refers to Annexure P-4 (annexed with CR no.548 of 2016), which is a tripartite agreement entered into at Braunschweig, Germany, between M/s IPRO Industrieprojekt GmbH, M/s Spray Engineering Devices Limited and M/s IPROSUGAR Engineering Pvt. Ltd, in which the following was agreed:- The following agreement is accepted by all parties: The IPROSUGAR invoices and debit notes (Overview attached) with a total of 4580171 INR are accepted by SED and required to be paid to IPROSUGAR. It is agreed that SED will pay the total amount in installment of 10% of the total value over a period of 10 months starting in April 2010 to IPROSUGAR. The payment will be submitted by SED on the 5th of every month to IPROSUGAR. SED may also pay faster. The IPRO invoices 02/09 (27,400.54 Euro) and 06/09 (16,995.00 Euro) with a total amount of 44,395.54 Euro (Forty Four Thousand Three Hundred Ninety Five and Fifty four cents) are accepted by SED and require to be paid to IPRO. It is agreed that SED will pay the total amount in installment of 10% of the total value over a period of 10 months starting in April 2010. The payment will be submitted by SED on the 5th of every month to IPRO. SED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were omitted (as per Annexures P-5 and P-8 with the present petition). 8. In support of his contention, he relies upon a judgment of the Supreme Court in Karnatka Power Transmission corporation Limited and another v. M/s Deepak Cables (India) Ltd., AIR 2014 SC 1626. Paragraph 9 of the said judgment, as has been referred to by Mr. Raura, reads as follows:- 9. From the aforesaid provision, it is graphically clear that unless an arbitration agreement stipulates that the parties agree to submit all or certain disputes which have arisen or which may arise in respect of defined legal relationship, whether contractual or not, there cannot be a reference to an arbitrator. To elaborate, it conveys that there has to be intention, expressing the consensual acceptance to refer the disputes to an arbitrator. In the absence of an arbitration clause in an agreement, as defined in sub-section (4) of Section 7, the dispute/disputes arising between the parties cannot be referred to the arbitral tribunal for adjudication of the dispute. He next refers, also to the same effect, to another judgment of the Supreme Court in Travancore Devaswom Board v. Panchami Pack Pvt. Ltd., (2004) 13 SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbitration clause existing. 11. In rebuttal, Mr.Parashar, learned counsel appearing for M/s Spray Engineering Devices Limited, submits that, firstly, the liability of payment is disputed, and therefore the contention that once there is an admitted liability an arbitration clause is not invocable, is a contention that is wholly unfounded; because despite the letter, Annxure P-5, referred to by Mr. Raura, showing that M/s Spray Engineering Devices Limited had in the year 2012 admitted to ₹ 35 lacs approximately being payable to M/s IPROSUGAR Engineering Private Limited, other than the fact that the said letter itself may be disputed in any civil or arbitration proceedings, it is a letter of the year 2012 and whether or not any payment was made thereafter, would be gone into by the appropriate forum, which as per the learned counsel would be an Arbitrator. Other than, he reiterates that once the agreement dated 14.06.2006 has been admitted and in fact is being relied upon by M/s IPROSUGAR in the suit filed by them, both for seeking recovery of the disputed amount, as also for seeking a declaration that they be paid royalty for use of any technology referred to in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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