Order 7 rule 11 & arbitration
SNIGDHA KURIYAL
(Querist) 25 March 2015
This query is : Resolved
“Section 8 of the Arbitration and Concilliation Act 1996 states that no suit shall be entertained by the civil court when there is an arbitration clause between the parties, and the Court shall refer the parties to arbitration.” Airconnect is an airline having its head office in Bangaluru. Fly Smart is a General Sales Agent (GSA) of Airconnect for North India having its Regd. Office in New Delhi. Airconnect has an agreement with its GSA signed at Bengaluru, which has a dispute resolution clause which clearly states that all disputes between the parties shall be resolved by way of arbitration. Due to the cancellation of its licence by Ministry of Aviation, Airconnect shuts down its flights abruptly. Consequently, Fly Smart is saddled with a huge outstanding debt from Airconnect on account of refund towards the cancelled tickets. Fly Smart has to recover a total sum of Rs. 25 lacs as per refund vouchers and has filed a suit for recovery against Airconnect at New Delhi. Airconnect is aggrieved by the suit filed by Fly Smart at New Delhi. Prepare appropriate filing/s under the relevant provisions of CPC to challenge the suit.
So, here can application under Order 7 rule 11 be filed?
If yes, do we have to file Written Statement aswell or the application would suffice?
Dr J C Vashista
(Expert) 25 March 2015
If you do not intend to go for arbitration you should file WS.
Provisions of O VII R 11 CPC can be invoked if there is no cause of action against the defendant(s) and/or deficiency in court fees.
What I presume from the facts of your query, you want to challenge jurisdiction of Delhi courts, in that case refer to Section 19 and 20 CPC which states the suit can be instituted where there is cause of action or part cause of action....
Devajyoti Barman
(Expert) 25 March 2015
If you wish to file petition for rejection of plaint, there is no need to file written statement. Let the petition under order 7 rule 11 be disposed of first.
ajay sethi
(Expert) 25 March 2015
agree with Mr barman
T. Kalaiselvan, Advocate
(Expert) 28 March 2015
Wait for the disposal of the IA filed under the provisions of O VII Rule 11 and based on it, you may think of initiating further action in this regard.
