Arbitration agreement does not oust winding-up proceedings under company law; stay refused and petition may proceed.

Section 34 of the Arbitration Act does not bar maintenance of a winding up petition under section 582 of the Companies Act because winding up proceedings for an unregistered company are special in nature, operate in rem and determine the status of a body of persons rather than decide contractual rights between parties; consequently such proceedings fall outside the class of suits contemplated for stay under the Arbitration Act and an application for a stay was rejected, allowing the winding up petition to proceed.

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Issues: Whether section 34 of the Arbitration Act bars the maintenance of a winding-up petition under section 582 of the Companies Act in respect of an unregistered company.

Analysis: Section 34 of the Arbitration Act applies to legal proceedings against a party to an arbitration agreement and operates to stay suits between parties where the dispute relates to the arbitration agreement, thereby giving effect to contractually agreed arbitration. A winding-up petition under section 582 of the Companies Act concerns dissolution of a body of persons described as an unregistered company and is a proceeding of a special nature before the company court that results in an order in rem rather than a personal judgment between contracting parties. The nature and object of winding-up proceedings distinguish them from ordinary civil suits seeking relief between contracting parties and place them outside the class of proceedings contemplated by section 34 of the Arbitration Act.

Conclusion: Section 34 of the Arbitration Act does not bar the maintenance of a winding-up petition under section 582 of the Companies Act; the application seeking a stay was rejected in favour of the petitioner.

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