Michael Golodetz And Others vs Serajuddin & Company on 12 December, 1962
(See, AIR 1963 SC 1044 (Michael Golodetz v. Serajuddin and Co.). It is universally accepted principle that the parties are prima facie bound by the arbitration clause and, therefore, normally they should be asked to keep to their bargain. It is undisputed that the Court should exercise its discretion in refusing to stay a suit in a sparing and cautious manner as a prima facie duty is cast upon Courts to act upon such an agreement.