LOTUS OIL COMPANY Vs. CALCUTTA SOAP WORKS

JUDGEMENT

(1.) THIS is an application to set aside an award of the Bengal Chamber of Commerce and Industry on two grounds, the first being that there was no dispute between the parties which could be referred to the said Chamber for arbitration. The second ground taken is that the contract being a forward contract within the meaning and definition of the expression in the Forward Contracts (Regulation) Act, 1952 was illegal inasmuch as it contravened the notification of the Central Government dated January 25, 1955, by virtue of which no such contract could be entered into in respect of the goods specified in the schedule including groundnut oil except with the permission of the said Government.

(2.) THE contract between the parties was entered into on November, 24, 1959, by exchange of bought and sold notes by brokers K.D. More and Co. THE relevant clauses of the sold note are as follows:- <FRM>JUDGEMENT_441_AIR(CAL)_1962Html1.htm</FRM>

(3.) THE above pearly shows that there was a dispute between the parties prior to the reference to the Bengal Chamber of Commerce and Industry. THE parties were not agreed about the date of extension. THE seller never offered to deliver and the buyer made it known unmistakably to the seller that unless the goods were delivered as demanded they would be free to buv the same from elsewhere and charge the difference. It was not necessary for the buyer to quantify its claim of difference before referring the matter to arbitration.