GORDHANDAS PURSOTTAM SONAWALA Vs. NATVARLAL CHANDULAL

JUDGEMENT

(1.) THIS is an application for obtaining a declaration that there exists no valid and enforceable arbitration agreement between the petitioner and the respondents, and the persons who are appointed as arbitrators have no authority, and that the alleged transactions in respect of which the disputes had arisen between the parties were outside the scope of Article 96 of the articles of association and bye-law 38-A of the East India Cotton Association, Ltd. In the alternative the petitioner has prayed for revoking the authority of the arbitrators.

(2.) THE petition is filed under Sections 33 and 5 of the Indian Arbitration Act X of 1940. The material allegations and submissions made by the petitioner in his petition are these.

(3.) THE respondents have filed a detailed affidavit controverting the allegations and submissions. They denied the allegation of collusion with Ramanlai, and asserted that the contracts were valid contracts in respect of which there existed arbitration agreements which were enforceable, and that the arbitration agreements were valid in law, and no question relating to the effect of the arbitration agreements fell to be decided. They further submitted that the contracts were not void as alleged either by reason of the provisions of the Indian Cotton (Control) Order, 1945, or by reason of the alleged failure to comply with the bye-laws of the Association or the forms prescribed thereunder, They also stated that the practice of the association in the matter of delivery contracts was not inconsistent with the bye-laws of the association, and that no justifiable ground for revoking the authority of tne arbitrators was made out,