For future interest 24 p.a.
The said cheques were presented to the bank.
Appellant and the predecessor in interest of the respondents entered into a Memorandum of Understanding on 8.05.2002 in relation to their businesses of export.
11,25,000/ which was accepted by the appellant.
574351 TO 574355 5 Cheques drawn ICICI Bank Ltd., Mount Road, Each R. 11,25,000/ Eleven Lakhs Twenty Five Thousand only towards settlement of your outstanding calculated on approximate basis.
11,25,000/ .
The same Memorandum of Understanding companytained an arbitration clause in the following terms In case of any dispute between the two parties, the same shall be referred to Arbitration, by two Arbitrators, numberinated by each of the parties.
36,14,887/ , the cause of action wherefor was stated as under The cause of action has arisen on 08 05 2002 when the memorandum of Understanding was executed between the plaintiff and the Defendant, and on all subsequent dates when the various transactions took place and on 29 07 2003, when the Cheque dated 21 07 2003 issued by the 1st Defendant was dishonoured.
574351 dated 21.4.2003, 574352 dated 21.5.2003 and 574353 dated 21.6.2003 were honoured whereas the fourth cheque bearing No.
Disputes and differences arose between the parties.
Admittedly, Respondents without prejudice to their rights and companytentions sent a demand draft bearing number 028881 drawn on 18.08.2003 for a sum of Rs.
Payments in terms of three cheques bearing Nos.
In the said suit, the following prayers were made For the Suit amount of Rs.36,14,887/ Rupees Thirty Six Lakhs Fourteen Thousand Eight Hundred and Eighty Seven only .
The respondents issued five post dated cheques of Rs.
Respondents in the said suit filed an application praying for reference of the dispute to the arbitral tribunal in terms of the arbitration clause companytained in the said Memorandum of Understanding and companytended that the suit filed by the appellant was number maintainable.
Yet again on 12.09.2003, the respondents without prejudice to their rights sent another demand draft bearing number 029612 for a sum of Rs.
on Rs.53,79,149/ Rupees Fifty three Lakhs Seventy nine Thousand One Hundred and Forty Nine only from the date of the suit till the date of realization.
7148 of 2006 B. Sinha, J. Leave granted.
The Award of the Arbitrators shall be binding on both the parties.
574354 dated 21.7.2003 was dishonoured on 29.07.2003.
Before receipt of the said payments, however, the appellant filed a suit in the District Court at Vijaywada for a decree for a sum of Rs.
Arising out of SLP C No.
By reason of a letter dated 23.08.2004, the said application was dismissed opining that numberdispute existed between the parties for reference to an arbitration.
However, the person who was managing the affairs of the respondents firms passed away.
which allegedly was accepted by it.
11,25,000/ each, which were forwarded by a letter dated 9th January, 2003 stating We are enclosing herewith five post dated cheques Bearing Nos.
Dishonour of the cheques was number put as a cause of action for the suit.
An order of the Andhra Pradesh High Court dated 16th December, 2005 passed in Civil Revision Petition No.
5241 of 2004 directing the parties to take recourse to the provisions of the Arbitration and Conciliation Act, 1996 for short the 1996 Act opining that the suit filed by the appellant herein was number maintainable, is in question before us.
