An arbitration clause contained in an earlier contract can be imported into a subsequent contract by appropriate language or that an arbitration clause found in an earlier contract could not be imported into a subsequent contract if the language, was both appropriate and clear.

( 1 ) THIS appeal was referred to a Full Bench for decision by a Bench of this Court by an order dated 5-4-1949. In the referring order two questions are propounded, namely, 1. In the circumstances of this case was the arbitration clause contained in the contract between Bubna More and Co. and the respondents imported into the contract made between the respondents and the appellants ?

( 2 ) WHICH of the two decisions, namely, Chatturbhuj Chandunmull v. Basdeodas Daga, 47 Cal 799 : (A. I. R. (8) 1921 Cal 767) and Haji Vali Mahomed Ayoob v. Shamdeo Gopiram, 34 C. W. N. 447 : (A. I. R. (17) 1930 Cal 774) is correctly decided ? 2. To appreciate the points in issue in this appeal it will be necessary shortly to set out the facts.

( 3 ) BY a contract indent No. 73 dated 13-12-1947, a firm known as Bubna More and Co. sold to the respondents in this appeal two lacs yards of American O. D. Cotton Merquisette Olive Colour 48" wide at Re. 1-1. 6 per yard.

( 4 ) BY the contract the sellers were to deliver the goods to the buyers or their nominees as when released by the Textile Controller Calcutta, and the buyers were bound to accept delivery accordingly. The buyers were under an obligation to take delivery of the goods within a week from the date of receipt of an advice from the sellers failing which the sellers had the option of selling the goods in the open market on the buyers' account.

( 5 ) THE goods which were the subject-matter of the contract were apparently in course of transit from America and they are described as shipment period during December 1947 from any U. S. A. Port.

( 6 ) IT is expressly provided in the contract that the goods are sold on the terms and conditions mentioned overleaf.

( 7 ) THERE were no less than twenty-sis printed conditions overleaf and amongst them was an arbitration clause which was condition No. 17. The clause was in these terms :"if any dispute shall arise in respect of the goods or in reference to any of the conditions hereof such dispute shall be referred to the survey or arbitration of two merchants one to be appointed by you and one by me/us, and in the event of the said surveyors or arbitrators being unable to agree, the dispute shall be referred to the committee of the Bengal or Indian Chamber of Commerce for umpirage. And this indent shall be deemed to be a submission to arbitration within the meaning of the Indian Arbitration Act, 1899 and/or any statutory modification thereof. In either event the surveyors, arbitrators or umpire shall have power to decide and award that the description of the goods tendered does not correspond to the description of the goods contracted for in which case I/we shall be entitled to reject the goods, or that the goods while corresponding to description of the goods contracted for shall be taken up and paid for by me/us either with such an allowance as the surveyors, arbitrators or umpire may determine or without allowance, such decision to be final and binding to both parties. If I/we fail to appoint an arbitrator or surveyor within three days after an arbitration has been appointed by you and claim is thereby released or waived by me/us. "

( 8 ) ON 12-1-1948 the respondents to this appeal sold 10,000 yards of the cloth which they bad purchased from M/s. Bubna More and Co. through a broker, Beherilal Khemka to the appellants and on the same day sold a further 25,000 yards directly to the appellants. The terms of both these contracts were identical and I think it will be convenient to set out the terms of one of these contracts verbatim. The terms are as follows :"we confirm having this day sold to you the American O. D. Cotton Marquisette Olive Colour size 48" wide quantity 10,000 yards (ten thousands yards.) Shipment during December 1947 from any U. S. A. port. Rate Sold--1-1. 6 per yard. Delivery Ex-sellers godown either by Messrs. Bubna More and Co. or by us soon after release. Subject to all terms and conditions of the contract No. 73