Judgment

MATHEW, J.: - This appeal, by special leave, is directed against an order of a learned Judge of the Calcutta High Court allowing an application filed under Section 37 (4) of the Arbitration Act, 1940 thereinafter called the Act) for extension of time to refer the matter to arbitration.

2. The facts are these. The appellant is a company doing business in general insurance. The respondent caries on business as a common carrier of goods. The respondent had taken out three transit policies of insurance renewable every year. The policy which is relevant for the purpose of the present appeal is Freight Policy No. CL/REP/257 taken by the respondent in January, 1969, from the appellant against risk of loss or damage to any goods or merchandise during transit.

3. In June 1971. the respondent declared to the appellant that it had received for transit a consignment of 185 packages of general merchandise alleged to be of the total value of Rs. 1,10,000/- (approx.) for transportation from Calcutta to various places in Assam and Tripura and paid the requisite premium on the value of goods and the goods stood insured under the said policy. According to the respondent, on the evening of 29-6