STATE BANK OF BIKANER AND JAIPUR Vs. DEVAKI NARAIN BHATIA

JUDGEMENT

(1.) THIS is an appeal against the order of the learned Addl. District Judge No. 2, jaipur City dated October 11, 1975.

(2.) THE facts of the case, relevant for the disposal of this appeal, are that the plaintiff Devaki Nandan Bhatia entered into an agreement with the appellant for construction of a building. An agreement was executed between the parties which also contained a clause, i. e. Clause 16, for referring all the disputes arising under the agreement to arbitration. The plaintiff has brought this suit for the recovery of Rs. 58,699/-against the defendant appellant Bank on March 1, 1973. The defendant-appellant, on receipt of the summons of the suit, filed an application under Section 34 of the Indian Arbitration Act, 1940 on April 27, 1973 for staying the proceedings.

(3.) RELIANCE was also placed on Daulat Ram v. Punjab State, AIR 1958 Punj 19, wherein it was held as under: