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2015 (3) TMI 1425
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....ner though there is an arbitration clause in the agreement. It is specifically contended that the respondents pleaded in para-3 of the plaint that there was an agreement between the petitioner and respondents for appointment of one P.V. Subba Rao as arbitrator for interpretation of the agreement. In view of the arbitration clause, the dispute before the civil Court has to be referred to the arbitrator to settle the dispute between the petitioner and respondents, as the respondents themselves admitted about arbitration clause for referring the dispute to P. Subba Rao and the suit is not maintainable before a civil Court. Hence, the petitioner sought to refer the matter to arbitrator, invoking arbitration clause contained in the agreement as pleaded by the respondents and prayed to refer the dispute between the petitioner and respondents to the arbitrator, P. Subba Rao for settlement and to grant of stay of all further proceedings. 4. Upon hearing argument of both the counsel, the trial Court dismissed the petition on the ground that the arbitral dispute is only for interpretation of terms of agreement but not for resolving any other disputes. Therefore, the dispute for recovery o....
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....ocument taking literal meaning and intention of the parties is irrelevant when there is no ambiguity in the language used in the arbitration clause in the agreement. 10. Basing on the above three contentions, the learned Senior Counsel contended that the interpretation of the arbitration clause by the trial Court is based on the settled principles of law. Consequently, the revision deserves to be dismissed, as it is devoid of merits and prayed to dismiss the petition. 11. Considering the contentions of both the counsel, the point for consideration is: "Whether the arbitration clause covered reference of the dispute relating to delivery of possession and mesne profits, if not, is the impugned order be sustained?" 12. This revision is preferred under Article 227 of the Constitution of India, the powers of revision under Article 227 are limited, this Court can exercise supervisory powers under Article 227, over all the Courts and Tribunals subordinate to it through out the State. In fact the power under this Article casts upon this Court is to keep the inferior Courts and Tribunals within the limits of their authority and that they did not cross the limits, ensuring ....
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....if it be possible to take a view different from the one which has appealed to the labour appellate Tribunal on the interpretation of sale deed, we do not think in exercising jurisdiction under Article 227 of the Constitution we have any power to interfere with the conclusions of that Tribunal 17. In the instant case, the dispute is only with regard to interpretation of clause (8) in paragraph No. 3 of the plaint, regarding the reference of dispute with regard to interpretation of clauses in the contract to P. Subba Rao, if, the principle laid down by Bombay High Court applied to the present facts of the case, this Court cannot exercise its jurisdiction under Article 227 of the Constitution of India, since, the only ground raised in this revision is interpretation of the clause in the agreement. 18. Normally, the question of interpretation would arise when there is an ambiguity in the language used in the document but the language used in the clause 8 of para 3 of the plaint is not ambiguous and the clauses are extracted here under for better appreciation. "(i) Sale of Suit property at Rs. 45 lakhs with BRS by defendant/tenant or Rs. 48 lakhs with BRS by plaintiffs/la....
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....is evident that when there is a dispute with regard to interpretation of the agreement, the matter has to be referred to P. Subba Rao, arbitrator. Hence, the principle laid down by Apex Court has no application. 21. Learned counsel for the revision petitioner further drawn the attention of this Court in S.N. Prasad, Hiteck Industries (Bihar) Limited v. Monnet Finance Limited, where the Apex Court ruled as follows: "The words, statement of claim and defence occurring in Section 7(4)(c) of the Act, are not restricted to the statements of claim and defence filed before the arbitrator. If there is an assertion of existence of an arbitration agreement in the any suit, petition or application filed before any court, and if there is no denial thereof in the defence/counter/written statement thereto filed by the other party to such suit, petition or application, then it can be said that there is an exchange of statements of claim and defence for the purpose of Section 7(4)(c) of the Act. If in the application filed under Section 11 of the Act, the applicant asserts the existence of an arbitration agreement with each of the respondent and if the respondents do not deny the said ....
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....les for interpretation of document laid down by the Apex Court in catena of decisions. 25. The dictionary meaning of the word interpretation is expound the meaning of, bring out the meaning of. But what does the words meaning mean? Does it mean (i) the literal meaning of the words used or does it mean (ii) the meaning the writer of the words had in his mind, i.e., his intention? Whether it means (i) or (ii), the process would be that in the case of (ii) intention has to be ascertained by reference to the words used to express it. Unexpressed intention has not to be considered, but courts can consider presumed intention while interpreting a document. Thus, the modern law can be said to be that the purpose of interpretation is two-fold: (i) to ascertain the intention as expressed in the words, i.e., to consider what has actually been said; (ii) to consider what the parties intended to have said or ought to have said but did not, either because they never visualized such a state of circumstances arising or for any other reason. The task of interpretation would be easy if it were just to discover the intention of the parties as expressed in words. But the task of the court is to asc....
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....must be placed on the contract as far as possible. However, in case of conflict between earlier or later clauses in a contract, later clauses are to be preferred to the earlier; while in a will, earlier clause is to be preferred to the later. 10. Contra Proferendum Rule-If two interpretations are possible, the one favourable to the party who has drafted the contract and the other against him, the interpretation against that party has to be preferred. 11. If two interpretation of a contract are possible the one which helps to make the contract operative to be preferred to the other which tends to make it inoperative 12. In case of conflict between printed clauses and typed clauses, type clauses are to be preferred. Similarly, in conflict between printed and hand written clauses, hand written clauses are to be preferred and in the event of conflict between typed and hand written clauses, the hand written calluses are to be preferred 13. the special will exclude the general 14. Rule of expression unius est exclusion alterius 15. Rule of noscitus a sociss 16. Ejusdem generic rule will apply both the contract and statute ....
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....isputes with regard to lease have to be referred to the arbitrator. But, here there is no doubt or ambiguity in the language used in Clause (viii) of para 3 of the plaint. 29. According to the contention of the learned counsel for the petitioner, the parties are intended to refer any dispute to the arbitrator but due to inartistic drafting, the specific words about the reference of any dispute was not mentioned in the agreement. But such contention cannot be accepted for the reason that the entire document is not before us to know the intention of the parties after reading the entire document. However in VISA International Ltd. v. Continental Resources (USA) Ltd., the Supreme Court held in para 25 as follows: No party can be allowed to take advantage of inartistic drafting of arbitration clause in any agreement as long as clear intention of parties to go for arbitration in case of any future disputes is evident from the agreement and material on record including surrounding circumstances 30. In the instant case, the clause relating to reference of dispute to the arbitrator is unambiguous and no part of the clause creates any amount of doubt or ambiguity to consider the intent....
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....claims to recover some amounts under the agreement and other party denies and negatives this claim as not arising under the terms of the agreement or as not complying with the condition precedent to the making of a claim specified in the terms of the agreement, the arbitration clause would ex facie become applicable. Whether a dispute falls within an arbitration clause in a contract, as Viscound Simon put it must depend on what is the dispute and what disputes the arbitration clause covers. In Heymans case (D) the arbitration clause was comprehensive and covered the dispute between the parties in respect of the agreement or in respect of any provision in the agreement, or in respect of anything arising out of it What has to be determined in this case, irrespective of the validity of the claim and the counter claim of the parties, be it untenable, frivolous or vexatious, is whether the dispute is one which involves the interpretation of the contract or which arises there under. It will be deemed to arise under the contract for the purposes of the arbitration clause if recourse is had to the terms of the contract itself, as negativing the claim of the respondent or ....
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.... and the application need not be accompanied by the agreement or copy thereof. He has drawn the attention of this Court to Section 7 of the Act, which reads as under: "(1) arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is in writing if it is contained in (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or (c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other." 38. It is clear from Section 7 of the Act that the exchange of statements, letters etc., is sufficient to accept the existence of agreement for reference to arbitrator. 39. In the pr....