GENERAL ELECTRIC TRADING CO Vs. SIEMENS (INDIA) LTD

JUDGEMENT

(1.) This appeal arises out of an application made by the appellant firm under Section 19, Arbitration Act 1899, for an order for stay of the proceedings in suit No. 2721 of 1927 instituted by the respondent company against the appellant firm on 22 December, 1927 in this Court. The application came on for hearing before my learned brother Pearson, J. on or about 16 March 1928, when by his judgment and order dated 16 March 1928, he dismissed the same.

(2.) The facts involved in this appeal, shortly stated, are as follows: It appears that on 22nd December 1923, an agreement was entered into between a company known as Gorie, Limited and the appellant firm whereby the latter were appointed distributors of the goods of the Siemens Schuckart Manufacturing Works for Sind and Baluchistan, in January 1925 the respondent company succeeded to the interest of Gorio Limited in its Electrical Department including the been fit of the agreement between Gorio Limited and the appellant firm. Thereafter here were various transactions between the respondent company and the appellant firm, the agreement in question being varied from time to time. In January 1926, the appellant firm instituted a suit against the respondent company in the Court of the Judicial Commissioner of Sind praying for a decree on accounts being taken between the parties. That suit was not proceeded with as a result of a certain settlement being arrived at between the parties, the terms of which were embodie.d in an agreement bearing date 29 June 1926. Clause 3(f) of that agreement ran as follows: That accounts so far not settled will be settled as soon as possible and all such matters on which Siemens (India) Limited disagree with the General Electric Trading Company will be referred to Mr. Haug and Dharamdas for final decisiou and if they also disagree they will both appoint a third person to decide that matter finally.

(3.) On 1 October 1927, the respondent company gave a letter of authority to Messrs. Haug and Juerges authorizing them to refer matters in difference between the respondent company and the appellant firm to arbitration in terms of the clause above recited. It is alleged that thereafter there were certain meetings between the representatives of the respondent company and the appellant firm, but no final settlement was arrived at, nor was there an award made by the arbitrators named in the said clause. The appellant firm contended and contends that the respondent company is not entitled to institute the said suit inasmuch as the agreement for reference to arbitration still subsists and as the matters covered by this suit were within the scope of the said submission.