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The State Of Jharkhand vs M/S Hindustan Construction Co. … on 14 December, 2017

Tags: court filed suit

2

“Whether this Court can entertain an application
for making the award as Rule of the Court, even
if it retains seisin over arbitral proceedings?”

2. The narration of the facts in detail is not necessary

to answer the reference. Suffice it to state that as

disputes had arisen between the parties, the matter was

referred to an arbitrator for adjudication of the disputes

and during the said period, the respondent had Filed a

suit in the High Court of Bombay seeking an interim

injunction restraining the State from encashing the bank

guarantee. As the time for making the award and the

period of extension had expired, the proceeding for

arbitration was abandoned. The State filed a money suit

before the learned Sub-Judge I, Saraikella for realization

of certain sum with interest. The respondent after

appearing in the suit filed an application under Section

34 of the Arbitration Act, 1940 (for short, “the Act”) for

stay of the suit. The said prayer was contested and the

learned Sub-Judge allowed the application filed by the

respondent. However, regard being had to the quantum

of the claim, the Sub-Judge expressed the view that it

was desirable that the parties should settle their disputes
3

in an arbitration proceeding. Against the said order, an

appeal was preferred under Section 39 of the Act before

the High Court which dismissed the appeal vide order

dated 06.08.2002.

Source: IK



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The State Of Jharkhand vs M/S Hindustan Construction Co. … on 14 December, 2017

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