PENUKONDA RATHAKRISHNAMURTHY Vs. BALASUBRAMANIA AND CO

JUDGEMENT

(1.) This is an appeal against the judgment of Kunhi Raman, J., on the Original Side in two petitions filed under the Arbitration Act, one to make the award a decree of the Court and the other to set it aside on the ground that the arbitrators had wrongly decided a point of law regarding limitation in holding that the claim of the appellant, P. Rathakrishnamurthy, was in time.

(2.) The facts are these : The appellant and Balasubramania & Co. (the first respondent) are both yarn merchants and members of the Madras Yarn Merchants Association. They have admittedly subjected themselves as members to a set of arbitration bye-laws which have laid down a rather elaborate procedure for the reference of disputes arising between the members out of forward and other contracts to arbitration. Rule 4(a) of the Arbitration bye-laws is as follows: In the forward (Vaida) F.O.R., or Ex-godown contract forms supplied by the Association, the following arbitration clause shall be inserted and it shall read thus: Any dispute arising out of this contract shall be referred to arbitration through the Madras Yarn Merchants Association according to the rules that are in force or hereafter come in force.

(3.) Rule 5 prescribes the first step for the invocation of arbitration and runs as follows: Any party to a dispute shall apply in writing to the Secretary of the Association filling up the form prescribed by the Association. Such application shall be accompanied by a plaint and necessary papers, letters and documents relating to the dispute along with a fee of Rs. 25.