SREE DURGA MINING CO Vs. JYOTI BROTHERS

JUDGEMENT

(1.) The only question involved in this appeal is whether an arbitration agreement on which the Appellant was relying in support of an application under Section 34 of the Arbitration Act, is a valid agreement. The Respondent contends that it is not valid and it urged two grounds of objection before Mukharji, J. The learned Judge did not pronounce on one of the objections, but he upheld the other.

(2.) The controversy has arisen in the following way. By two several contracts entered into on May 22, 1955, the Respondent firm agreed to buy from the Appellant and the Appellant agreed to sell to the Respondent certain quantities of iron ore of a certain, specification. The Respondent's case is that no ore was delivered and it brought a suit on the Original Side of this Court for the recovery of a lakh of rupees as damages or, in the alternative, for an enquiry as to what damages it had suffered on account of the non-delivery of the goods. The Appellant did not file its written statement in the suit, but intervened with an application under Section 34 of the Arbitration Act. Its contention was that the contracts concerned contained an agreement for arbitration and, therefore, the suit ought not to be allowed to proceed.

(3.) The arbitration agreement relied upon by the Appellant is expressed in the following terms: