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As per case facts, the Plaintiff filed a suit seeking a permanent injunction to prevent the Defendant from claiming his share in M/s. Ajantha Real Estates. The Defendant sought to
...reject the plaint, citing an arbitration clause and ongoing arbitration since 2007. The trial court rejected the suit, and the First Appellate Court directed referral to arbitration. The Plaintiff appealed to the High Court. The question arose whether lower courts erred regarding the timeline for arbitration application, the necessity of the original arbitration agreement, and the referral to arbitration without the deed. Finally, the High Court dismissed the appeal, affirming the First Appellate Court's decision. It ruled that an existing arbitration clause and ongoing proceedings mandate arbitration, avoiding bifurcation of disputes to prevent delays and conflicting judgments, and uphold the Arbitration Act's objective.
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