LACHMINARAIN BHAREODAN Vs. HOARE, MILLER AND CO

JUDGEMENT

(1.) This is an application on behalf of the defendant company, that having regard to the arbitration clause in the contract in dispute in this suit, all proceedings therein had or taken be stayed, and that the matters in difference between the parties may be referred to arbitration.

(2.) The contract in suit provides for the delivery of one thousand bales of jute cuttings by the plaintiffs to the defendant company--500 bales during October, 1912, and 500 bales during November, 1912. The contract provides that any dispute arising out of the contract shall be referred to the settlement of an arbitrator or arbitrators appointed by the Bengal Chamber of Commerce, which shall be accepted as final and binding on both parties to the contract.

(3.) The undisputed facts to be found from the pleadings and affidavits filed in this case in support of the application and in answer to it, appear to be these: that after the contract was entered into, some goods were tendered by the plaintiff firm in respect of the October portion. The defendant company objected, on the 23rd October, 1912, on the ground that the cuttings were nothing like the standard. After some correspondence the plaintiff firm cancelled the contract so far as it related to the October portion. The letter from the defendant of the 18th November, 1912, cancelling the contract in respect of this quantity, was challenged by the defendant company; they said that they refused to treat the contract as cancelled, as they had asked for a fresh tender, and they desired the plaintiffs to arrange for the despatch of one thousand bales without delay. This is to be found in their letter of the 21st, November, 1912. This dispute seemed, however, to have been arranged after that, and there was a letter on the 30th November, 1912, from the plaintiffs to this effect: "As arranged, please allow us extension to deliver 500 bales due this month under the above contract till the 25th December, subject to "your inspection at our press-house before delivery." The plaintiffs by their letter of the 3rd December extended the time, and said that they granted extension of delivery of the bales under the contract until the end of the month; they added that if the plaintiffs could manage to deliver earlier, they would be obliged.