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PETITIONER: GAYA ELECTRIC SUPPLY CO., LTD.
Vs.
RESPONDENT: THE-STATE OF BIHAR.
DATE OF JUDGMENT: 03/02/1953
BENCH: MAHAJAN, MEHR CHAND BENCH: MAHAJAN, MEHR CHAND DAS, SUDHI RANJAN HASAN, GHULAM
CITATION: 1953 AIR 182 1953 SCR 572 CITATOR INFO : E&D 1985 SC1156 (49,52)
ACT: Indian Arbitration Act (X of 1940), s. 34- Contract containing arbitration clause-Rescission of contract and suit by one party--Application for stay of suit-Scope of arbitration clause-Construction of clause.
HEADNOTE: If the arbitration agreement is broad and, comprehensive and embraces any 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, and one of the parties seeks to avoid the contract, the dispute is referable to arbitration if the avoidance of the contract arises out of the terms of the contract itself. Where, however, the party seeks to avoid the contract for reasons dehors it, the arbitration clause cannot be resorted to as it goes along with other terms of the contract. In other words, a party cannot rely on a term of the contract to repudiate it and still say the arbitration clause should not apply. Where, however, an arbitration clause is not so comprehen- sive and is not drafted in the broad language namely " in respect of " any agreement, or ...