In Brief
A company appointed as a clearing and forwarding agent under an agreement containing an arbitration clause later compromised a dispute through a compromise decree, which substituted the original agreement with a new arrangement appointing the company as a stockist. When the company subsequently sued for compensation for losses arising from non-compliance with the compromise and other grounds, the respondent sought referral to arbitration invoking the original agreement's arbitration clause. The Court held that the civil court has jurisdiction; the original arbitration clause cannot apply to disputes arising from the compromise deed (which is a different agreement), and substantial claims regarding loss of goodwill and the respondent's allegations of fraud must be decided by the civil court itself. The High Court's order referring the parties to arbitration was set aside.
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