High Court Kerala High Court

M/S.P.P.Enterprises vs Idea Mobile Communications Ltd on 12 November, 2008

Kerala High Court
M/S.P.P.Enterprises vs Idea Mobile Communications Ltd on 12 November, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 32415 of 2008(H)


1. M/S.P.P.ENTERPRISES, REPRESENTED BY ITS
                      ...  Petitioner

                        Vs



1. IDEA MOBILE COMMUNICATIONS LTD.,
                       ...       Respondent

2. MANAGER, IDEA CELLULAR LTD., MERCY

3. MANAGER, IDEA CELLULAR LTD.,

                For Petitioner  :SRI.AVM.SALAHUDIN

                For Respondent  : No Appearance

The Hon'ble MR. Justice K.P.BALACHANDRAN

 Dated :12/11/2008

 O R D E R
               K.P. Balachandran, J.
             -------------------------
             W.P(C)No.32415 of 2008 H
             -------------------------

                     JUDGMENT

Plaintiff is the petitioner. The prayer in

this writ petition is to declare that Exhibit P4

order passed by the court below on I.A.No.3034/08

in O.S.No.575/08 is illegal and to set aside the

same and to direct the court below to dispose of

the suit O.S.No.575/08 on merits.

2. The suit was instituted by the petitioner

against the respondents for a decree of permanent

prohibitory injunction restraining them from

terminating the franchisee agreement otherwise than

by due process of law and in strict compliance with

the terms of the agreement and from restricting,

controlling, revising, stopping or in any way

denying any of the services, facilities or products

of the respondent company to the petitioner/

plaintiff, including the products yet to be

released by Idea Cellular Services.

WPC 32415/08 2

3. Respondents, on entering appearance in the

court below, filed I.A.No.3034/08 praying for the

dispute involved in the suit being referred to

arbitration as per clause 15(1) of the Franchise

Agreement. Exhibit P3 counter was filed thereto by

the petitioner and the court below, vide Exhibit P3

order, referred the parties to arbitration.

4. It is vehemently contended before me by the

learned counsel for the petitioner/plaintiff that

the franchisee agreement had expired, though they

are continuing as before in continuation of the

franchisee agreement and that therefore, the

arbitration clause in the franchisee agreement is

not applicable. The contention is not tenable as

the suit itself was filed basing on the rights of

the petitioner on the franchisee agreement, copy of

which was produced as Item No.1 in the list of

documents annexed to the plaint. Though this Court

directed the petitioner to produce the franchise

agreement, the said agreement is not produced and

WPC 32415/08 3

today, a photostat copy of the agreement is

submitted before me for perusal.

5. Clause 15(1) of the said agreement deals

with settlement of dispute. It is that clause that

is extracted in Exhibit P2 petition by the

respondents. If the said provision for settlement

of dispute in the franchise agreement is acted

upon, reference of the dispute to arbitration

cannot be found fault with. All the same, counsel

for the petitioner has advanced an argument that

under Section 8(2) of the Arbitration and

Conciliation Act, an application referred to in

Section 8(1) of the Act (Exhibit P2 in the instant

case) shall not be entertained unless it is

accompanied by original agreement or a duly

certified copy thereof. The said provision applies

only in cases where the agreement is not already

produced before the court. In the instant case, the

franchise agreement, which contains the arbitration

clause is produced by the petitioner/plaintiff

WPC 32415/08 4

himself along with the suit and therefore, the

petitioner/plaintiff cannot dispute the

authenticity of the said agreement. In such event,

there is no necessity to comply with Section 8(2)

of the Act by the respondents, who filed Exhibit P2

petition. Reference to arbitration by the court

below, vide Exhibit P5 order, in the circumstances,

is in order and cannot be faulted. There is no

merit in this writ petition.

This writ petition is, hence, dismissed.

12th November, 2008 (K.P.Balachandran, Judge)
tkv