JAGDISH CHANDER GUPTA Vs. LACHHMAN DASS

JUDGEMENT

(1.) THIS appeal under Section 39 of the Arbitration Act, 1940 is directed against the order of the Sub Judge 1st Class. Ludhiana dated 27th January 1964, whereby he granted the application of Lachhman Dass and others under Sections 8 and 20 of tha Arbitartion Act and appointed Shri Jullunduri Parshad, Advocate of Ludhiana as an Arbitrator. The facts giving rise to this appeal are as follows: --

(2.) THE appellant Jagdish Chander Gupta, who is the sole proprietor of the concern known as Foreign Import and Export Associa-tion, Bombay, obtained a licence for the im-port of Wool Top Combing Plant for installing it at Kotah (Rajasthan) on 29th June 1961. Subsequently on 10th January 1962 he entered into a partnership, vide Exhibit A-1, with the respondents Lachhman Dass and others under the name of M/s. Ashoka Combing Mills. Some of the terms of this partnership which are relevant for purposes of this case are as under:-

(3.) IT is common case of the parties that in pursuance of Clause (1) of the agreement, reporduced above, the appellant Jagdish Chander Gupta applied to the authorities concerned for permission to set up the Wool Combing Plant at Ludhiana instead of Kotah (Rajasthan) for which the licence had been originally granted, but the authorities refused to grant the necessary permission. No steps were, however, taken by him to have the industrial licence transferred in the name of the firm. This naturally led to a dispute between the parties on which the respondents appointed Shri Kewal Krishan Adya as Arbitrator This appointment was agreed to by the appellant, but despite notice issued to him, he did not appear before the Arbitrator and ultimately informed him that he had withdrawn the appointment of the Arbitrator Thereupon Shri Kewal Krishan Adya Arbitrator refused to proceed with the arbitration. Faced with this situation the respondents moved the Sub Judge 1st Class, Ludhiana, on 8th November 1962, under Sections 8 and 20 of the Arbitration Act for filing the agreement and appointment of Shri kewal Krishan Adya or any other Arbitrator to adjudicate upon the dispute that had arisen between the parties and for assessment of damages suffered by them. Besides objecting to the jurisdiction of the Court, the appellant resisted the application that because of the Central Government's refusal to permit change of location of the plant from Kotah to Ludhiana and asserting that the application was barred by time. The learned Sub-Judge tried the case on the following issues: