KAMALA MILLS LTD Vs. GANPATTI BHAGAWATI PRASAD

JUDGEMENT

(1.) THIS is an application for slay of the suit. There was a contract between the petitioners and the respondents by which the petitioners agreed to sell and the respondents agreed to purchase certain textile goods. The contract contained the arbitration clause as follows:

(2.) THE principal objection to stay of the suit is that the arbitration clause is vague. The arbitration clause speaks of disputes to be referred to arbitration in accordance with the rules of the Millowners' Association, Bombay. It is, therefore, contended that there is no reference to anybody as the chosen arbitrator. Reliance was placed on a decision of Sinha, J. reported in 85 C. L. J 136 at page 141. In that case there was a contract containing a printed arbitration clause which was as follows:

(3.) THE printed portion was followed by a type-written clause which also contained an agreement for arbitration. The type-written clause was as follows: