No live arbitrable dispute and clear admissions justified refusal of arbitration and decree on admissions.

Where the only objection was non-production of a no dues certificate, the court found no live arbitrable dispute survived because the plaintiff produced a competent sales tax certificate and the alleged defence was merely technical. Reference to arbitration under Section 8 was therefore refused. The defendant's communications acknowledging liability, together with the certificate on record, were treated as sufficient admissions showing the claim was due, so the suit was fit for disposal under Order 12 Rule 6 CPC. A decree on admissions was granted for the plaintiff with interest and costs, subject to rejection of the separate interest claim on delayed part-payment.

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Issues: (i) Whether the disputes between the parties survived for reference to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996; (ii) Whether a decree could be passed on admissions under Order 12 Rule 6 of the Code of Civil Procedure, 1908.

Issue (i): Whether the disputes between the parties survived for reference to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996.

Analysis: The application for reference to arbitration was examined in the light of the settled position that Section 8 is mandatory where a live arbitrable dispute exists, but a court may decline reference where no real dispute survives. The only defence pressed was alleged non-compliance with the contractual requirement of producing a no dues certificate from the sales tax authority. The plaintiff produced a certificate from the competent sales tax authority stating that it was not in sales tax arrears. On the record, the alleged technical objection did not disclose any meaningful subsisting dispute requiring arbitral adjudication.

Conclusion: No arbitrable dispute survived, and reference to arbitration was refused.

Issue (ii): Whether a decree could be passed on admissions under Order 12 Rule 6 of the Code of Civil Procedure, 1908.

Analysis: The court treated the defendant's communications acknowledging liability, together with the later sales tax certificate, as sufficient admissions and material showing that the plaintiff's claim was due. Once the liability stood admitted and the defendant failed to show a substantial defence, the matter was fit for disposal on admissions rather than being driven into unnecessary trial or arbitration.

Conclusion: A decree on admissions was warranted in favour of the plaintiff.

Final Conclusion: The application seeking reference to arbitration was rejected, and the suit was decreed for the plaintiff with interest and costs, subject to the court's disallowance of the separate interest claim on the delayed part-payment.

Ratio Decidendi: Where the claim is effectively admitted and no meaningful dispute survives, Section 8 of the Arbitration and Conciliation Act, 1996 cannot be invoked to compel arbitration, and judgment may be entered on admissions under Order 12 Rule 6 of the Code of Civil Procedure, 1908.

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