Judgment

SHAH, J. The question which falls to be determined in this appeal with certificate granted by the High Court of Bombay against an order refusing a motion for stay of a suit, is :

"Whether an agreement to refer a future dispute to arbitration according to the rules of the International Chamber of Commerce between a Company registered under the Indian companies Act and a foreigner is binding upon the former."

2. The facts which give rise to this question are these : Socite De Traction Et D Electricite Societe Anonyme - hereinafter called, for the sake of brevity, Traction - is a Corporation incorporated under the laws of Belgium and carries on business as consulting and construction engineers at Brussels. The respondent Kamani Engineering Corporation Ltd. - herein-after called Kamani - is a company registered under the Indian Companies Act, 1913. Kamani carries on business, amongst others, as an engineering concern. On April 22, 1959 Kamani entered into a Collaboration agreement with Traction whereby the latter undertook to provide to Kamani technical assistance for the construction of overhead railway electrification, tramway systems and trolley buses in India, Burma, Ce