PARES STORES Vs. KANTI KUMAR BIMAL PRASAD

JUDGEMENT

(1.) This is an application for, inter alia, the determination of the validity, existence and effect of the arbitration agreement, if any, between the parties and for declaring the award or judgment dated August 20, 1968, in case No. 68 of 1968 (sic) made by the Textile Merchants Association null and -void and for setting aside the said award or decision.

(2.) The Petitioner agreed to purchase from the Respondent and the Respondent agreed to sell to the Petitioner various textile goods mentioned in a document dated October 20, 1967, on the terms and conditions amongst others contained in the said document. Disputes and difference arose between the parties with regard to the said contract whereupon on or about January 29, 1968, the Respondent referred the disputes between the parties to Textile Merchants Association in accordance with the provisions of the rules of the said Association although in the document dated October 20, 1967, there is no arbitration clause. The Respondents alleged that the parties agreed orally to refer the disputes arising out of the contract to the arbitration of the Textile Merchants Association in accordance with the arbitration clause contained in the rules of the said Association. The said Association registered the said complaint as a case, being Case No. 68/129 '(Kanti Kumar Bimal Prasad v/s. Paras Stores). The Association forwarded a copy of the aforesaid complaint of the Respondent together with a copy of the statement of claim of the Respondent to the Petitioner. The Secretary of the Association informed the Petitioner by the said letter that unless the matter was mutually settled the same would be forwarded to the Arbitration Committee for decision in accordance with the provisions of the rules of the said Association.

(3.) On February 5, 1968, the Petitioner replied to the complaint and the statement of claim of the Respondent filed before the Association. On February 15, 1968, the Respondent filed its rejoinder to the reply of the Petitioner before the Association. On February 26, 1968, an award was made by the Arbitrators of the Arbitration Committee directing the Petitioner to take delivery of the goods mentioned in the said document dated October 21, 1967, from the Respondent within seven days, and in default thereof the Respondent was directed to sell the goods at the market rate and claim the difference. On or about March 5, 1968, the Petitioner preferred an appeal from the judgment of the said Arbitration Committee to the Appellate Board of the said Association in accordance with the provisions of the rules of the said Association governing such arbitrations.