INDER CHAND JAIN Vs. POORAN CHAND BANSI DHAR

JUDGEMENT

(1.) THIS is a revision petition against the order of Court at Delhi returning the application, under Sections 32 and 33 of the Indian Arbitration Act to the present petitioners on the ground that it had no jurisdiction to entertain it.

(2.) THE petitioners are the firm Chhunnu Mal-Kishan Chand and its partners Indar Chand Jain, Kishan Chand Jain and Dharam Pal Tain, and a dispute has arisen regarding some dealings which they had with Bombay firm Messrs. Puran Mal- Bansi Dhar respondent No. 1. THE petitioners received a letter dated 16-4-1956 from the Bombay firm stating that whereas claims, disputes and differences had arisen and were pending between them the Bombay firm had appointed Mr. N. N. Dubash respondent. No. 2 as its arbitrator and calling on the petitioners to appoint their arbitrator within seven days. THE petitioners sent a reply dated 20-4-1956 contending that any reference to arbitration was illegal and inoperative on various grounds. However, respondent No. 4 the Native Share and Stock Brokers Association of Bombay proceeded to appoint Jayant Amar Chand respondent No, 3 as a second arbitrator, on behalf of the petitioners this appointment being communicated by a letter dated 7th of May 1956.

(3.) THE lower Court proceeded to decide the matter on the basis that it was admitted that the contracts in dispute were entered into at Bombay and that no part of the cause of action arose within the jurisdiction of the Delhi Court, and the contention advanced on behalf of the petitioners that since they were residents of Delhi a suit on the basis of the contracts in dispute could have been filed by the Bombay firm in the Delhi Court, was repelled.