RIKHAB KUMAR Vs. TRIVEDI AND CO

JUDGEMENT

(1.) The plaintiffs and the defendants entered into a contract for the purchase of certain plate cuttings, the plaintiffs being the buyers, and the defendants being the vendors. The plaintiffs on 31 December 1925 entered into the ordinary form of contract which provided for arbitration in the event of any dispute or difference. A dispute arose and the parties each appointed an arbitrator, and after the refusal of the Bengal Chamber of Commerce to act as umpire, they appointed a Mr. Cameron. For reasons which we need not enter into, the High Court of Calcutta set Mr. Cameron's award aside, and thereupon, on 21 June 1927, the defendants nominated Mr. Leo as their arbitrator, he having been the same gentleman who had sat as arbitrator on their behalf before. The plaintiffs objected to this, probably on the ground that Mr. Lee had already expressed his opinion favourably to the defendants. The plaintiffs made various applications to get the appointment of Mr. Lee, who by lapse of time was said by the defendants to have become sole arbitrator, set aside, and failed. Thereupon, on 10 February 1928, the plaintiffs instituted a suit in Rs. 5,000 as damages, the damages being as the plaintiffs contended, the monetary compensation to which they were entitled by a breach of contract arising under this very engagement of 31 December 1925. Thereupon the defendants applied under Section 19 Arbitration. Act to stay the suit, and Mr. Raja Ram, a Judge of great experience in commercial matters, made the order staying the suit. From that order the plaintiffs have appealed here.

(2.) We are of opinion that the learned Subordinate Judge came to a right conclusion, and that the matter is, when one examines the terms of the contract, beyond argument.

(3.) The first point to be noticed is that the price of the goods was to be paid in Calcutta, and when one turns to the arbitration clause, which is No. 4 of the printed form, it is seen at once that the buyers bound themselves to an arbitration, which, by the terms of Clause 4, indicated exactly how and where that arbitration was to proceed. Clause 4 runs as follows: If any question, dispute or difference whatsoever shall, touching this contract arise between sellers and buyers then, and in any such case, sellers will be entitled at their option to require buyers to submit the matter in difference, either to the arbitration of two European merchants in the trade in Calcutta (one to be appointed by sellers and one by buyers), or in the event of their differing of an umpire appointed by such arbitrators before entering on the reference or to the arbitration of the Bengal Chamber of Commerce. The award of such arbitrators, umpire or Chamber shall be final and binding on both the parties, either of whom will be at liberty to apply that the same may be filed as a rule of Court.