SUKHANANDAN RAMDHIN Vs. MANIKLAL KANHIALAL

JUDGEMENT

(1.) THIS is a motion for the stay of this suit on the ground that the matter should be referred to arbitration.

(2.) THE dispute between the parties arises out of a transaction in cotton. It is admitted that there was an initial sale of 200 bales of cotton and a contract note dated November 6, 1939, was sent by the defendants to the plaintiffs and signed by the plaintiffs. THEreafter owing to fluctuations in the market the defendants demanded margin money but the plaintiffs failed to pay the same. THEreupon the defendants closed the transaction on February 3, 1940. On receipt of intimation thereof the plaintiffs repudiated this closing transaction. THE defendants thereupon offered to resell, if the margin, as demanded, was paid. To that there was no reply. THE defendants thereupon sent a contract note with their letter of February 6, 1940, to the plaintiffs. THE plaintiffs retained the same with them. On February 20, 1940, the defendants sent a statement of account showing the balance due by them to the plaintiffs, and requested the plaintiffs to draw up a hundi for that balance. No reply was sent by the plaintiffs to that letter and no dispute was raised at that stage. On March 19, 1940, the plaintiffs sent a telegram to the defendants as follows: Kindly settle 200 bales cotton vide your contract note C. 694 purchasing market price to-day wire settlement. THE defendants sent a reply intimating that the purchase had already been effected on February 3 under Contract No.1553 which was already sent and there was no outstanding business. It is common ground that Contract Note No. C. 694 is the contract dated November 6, 1939. THE plaintiffs then filed this suit to recover the amount due to them on the footing of the difference between the price noted in the contract dated November 6, 1939, and the current price in the market on March 19, 1940. THE defendants have appeared under protest and now apply for a stay of the suit.

(3.) THE notice of motion is, therefore, made absolute with costs and the suit is stayed as prayed.