(1.) THIS is civil first appeal and arises out of a suit instituted by the plaintiffs Sabir Dar, Amir Ganai and Ghulam Ahmad Loan against the defendant State of Jammu and Kashmir through Director Military Farms for the recovery of Rs. 8,356/2/ -with the allegations that out of the value of grass weighing 18860 maunds 47 Ibs. which amounted to Rs. 75,147/5/ - the defendant paid Rs. 65,697/3/ -and also another item of Rs. 1,094/ - and the balance due from the defendant was Rs. 8,356/2/ -which was not paid in spite of notice and hence the suit.
(2.) THE defendant resisted the suit on various grounds and one important ground among them was that the suit was not maintainable in the Civil Court in view of Cl. 20 of the agreement. The trial court raised various issues and the important issues were :
(3.) THE defendant has appealed and the case came up for hearing before a Division Bench. The main question which was canvassed before the Division Bench was that second part of Exception (1) to S. 28 of the Contract Act completely barred the Civil Court to try the suit in view of the agreement between the parties contained in CI. 20 of the agreement which is marked Ex. D.14. In view of the substantial question of law involved in this case which is likely to occur in many cases it was considered desirable to refer the case to the Full Bench for an authoritative pronouncement on the question of law which arose in this case. The case came up for hearing on the 13th October, 1958.