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1956 Supreme(Cal) 27

P.B.MUKHARJI
JYOTI BROTHERS – Appellant
Versus
SHREE DURGA MINING CO. – Respondent


Advocates Appeared:
A.C.BHABRA, G.P.KAR, R.C.DE, S.C.SEN

P. B. MUKHARJI, J.

( 1 ) THIS is an application for stay of a suit under Section 34, Arbitration Act. The Arbitration clause in this case is in the following terms:--"in the event of any dispute arising out of this contract the same can be settled by Arbitration held by a Chamber of Commerce at Madras. Their decision shall be binding to the Buyers and the Sellers".

( 2 ) THE suit which the plaintiff filed in this case is a suit claiming damages for breach of contract for non-delivery of the goods. The allegation is that the defendant agreed to sell and the plaintiff agreed to buy certain cargo loads of iron ore. The Arbitration clause that I have set out appears in this contracts.

( 3 ) APPARENTLY if there is a valid Arbitration agreement in that clause quoted above, the disputes alleged in the plaint are unquestionably disputes which come within the ambit of that Arbitration clause. But the whole point is whether this is a valid Arbitration agreement at all. Before discussing the construction of this clause, it is necessary to refer to the fact that there are five different Chambers of Commerce in Madras and according to a decision of S. R. Das Gupta, J. in 'karanji and Co. v.



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