Joint reference to arbitration with directions on claims, counterclaims, seat, court fee refund, and contractual supersession.

On the joint request of both parties, the Court referred the disputes arising from the memorandum of agreement to arbitration and issued consequential directions for the conduct of the reference. The plaint was to be treated as the claim and the respondents' claim petition as the counterclaim; Chennai was fixed as the seat of arbitration, while the arbitrator was allowed to choose a convenient venue and seek expert assistance if necessary. The order also recorded the parties' entitlement to seek refund of court fee under section 16 of the Court Fees Act, 1870, and stated that the judicial direction would supersede the contractual arbitration clause.

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Issues: Whether, on the joint request of the parties, the disputes arising from the memorandum of agreement were to be referred to arbitration with ancillary directions regarding the claim, counterclaim, seat of arbitration, refund of court fee, and supersession of the contractual arbitration clause.

Analysis: The reference to arbitration was made on the joint request of counsel for both sides. The plaint in the suit was directed to be treated as the appellants' claim and the respondents' claim petition as counterclaim. The arbitrator was permitted to fix a convenient venue, with Chennai taken as the seat of arbitration, and was also authorised to take expert assistance if necessary. The order further recorded entitlement to seek refund of court fee under section 16 of the Court Fees Act, 1870, and stated that the judicial direction would supersede the existing arbitration clause in the agreement.

Conclusion: The disputes were referred to arbitration with the stated ancillary directions, and the appeal was disposed of accordingly.

Ratio Decidendi: Where the parties jointly request reference to arbitration, the Court may appoint an arbitrator and give consequential directions for conduct of the reference, treatment of pending pleadings, seat, and contractual supersession.

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