BASANTLAL JAGATRAMKA Vs. DOMINION OF INDIA

JUDGEMENT

(1.) THIS is an appeal from an order of Sinha J. dated 4-5-1949 allowing en application for stay of a suit pending arbitration proceedings.

(2.) ON 9-9-1944 the appellant entered into a contract with the Dominion of India for the supply of bales of hay. The contract contained an arbitration clause which was clause 21 of the contract. That clause reads as follows:

(3.) ON the last day of limitation, the appellant brought a suit for damages for breach of contract. The resp. applied for a stay of the suit pending arbitration. The appellant objected to the stay being granted firstly on the ground that if a stay was granted his claim would be barred by limitation. The learned Judge very rightly pointed out that by filing the suit on the very last day of limitation the appellant took a very grave risk. It appears that the respondents were prepared to undertake not to raise this question of limitation before the arbitrators. But whether that undertaking is a valid one or not I need not consider.