BHUDARMULL BAZAZ Vs. UMA SHANKAR PURUSHOTTAMDAS AND CO

JUDGEMENT

(1.) THIS is an application by Bhudarmull Bazaz carrying on business under the name and style of Shivaramdas Bhudarmal under the Indian Arbitration Act for declaring the Award No. 139 of 1952 of the Bengal Chamber of Commerce dated 13-2-1952 as null and void, and for an order that there was no valid arbitration agreement in the contract dated 16-3-1951.

(2.) THE matter arises out of a transaction relating to sale and purchase of jute goods. On 16-3-51, there was a contract being contract No. 0 by which the petitioner agreed to sell and deliver to the respondent 15000 bags of B. Twills at Rs. 231-10-0 per 100 bags on the terms and conditions contained in a sold note of that date and number passed by the brokers to the petitioner. That contract No. 6 dated 16-3-1951, contained the following arbitration clause:

(3.) THE main basis of the applicant's argument challenging the arbitration agreement and the award may be stated briefly. It is contended that by reason of the provisions in the statute which I have just mentioned this contract has become void and unenforceable. THErefore as the arbitration clause forms a part of this contract, this arbitration agreement is also void and unenforceable. Reliance has been placed on the decision of Sarkar J. in -- 'Bhimraj Sethia v. Jiwanmull Tapuria from which there was an appeal, being A.F.O.O. No. 116 of 1950 (Cal) (A), but which appeal failed on a preliminary ground as being not a competent appeal. Reference has also been made to the observations of Viscount Simon L. C. in 'Hayman v. Darwins Ltd.', (1942) AC 356 at p. 360 (B). In answer Mr. Ginwalla, learned counsel for the respondent, has relied on the decision of the Court of Appeal of this Court in -- 'State of Bombay v. Adamji Haji Dawood and Co.', and specially on observations appearing at page 148 of that report.