Judgment

SHAH, J. : The Appellants are a firm carrying on business as importers, in the name and style of "Mr. Golodetz and Company" at 120, Wall Street New York in the United States of America. The respondents are a firm carrying on business, among others, as exporters of manganese ore and their principal office of business is at Bentinck Street in the town of Calcutta. By a contract in writing dated July 5, 1955 the respondents agreed to sell and the appellants agreed to buy 25,000 tons of manganese ore on the terms and conditions set out therein. The contract contained the following arbitration clause.

"Arbitration: Any dispute arising out of the contract is to be settled by arbitration in New York according to the rules of the American Arbitration Association."

Between September 1956 and August 1957 the respondents supplied 5478 tons of manganese ore. Dispute having arisen between the parties about the liability of the respondents to ship the balance of the goods not delivered, the appellants referred them on or about January 15, 1958 to the arbitration of the American Arbitration Association and claimed compensation on the plea that the respondents had unlawfully made default in