An arbitration clause must be clear and definite in order to be enforceable.

( 1 ) HE judgment under appeal was given by a learned single Judge on an application under section 34 of the Arbitration Act praying for stay of the suit. The learned single Judge held that there was an arbitration clause and the suit had to be stayed. The arbitration clause in this case was found to exist because of certain clauses in the Constitution and Regulatins of the Paper Merchants Association, Delhi (Regd.) Chawri Bazar, Delhi. The said Constitution shows that one of the aims and objects of the Association is to settle the disputes between its members and to arbitrate amongst contesting parties. The power to appoint an arbitrator is given to the Executive Committee under Clause XVI. The particular clause reads as follows: "15. To appoint Arbitrators, Umpires, Appellate Authority for settling disputes between members and members and non-members, and to make rules and regulations governing the proceedings for arbitration, etc. In case of any dispute between members of the Association the same shall be referred to the arbitrator whose decision shall be binding on the members,"

( 2 ) IN addition to this, the contract concerning which the disputes have arisen between the parties have bills which contain the following printed matter "in case of any dispute the judgment of the Tribunal or any other authority appointed by the Paper Merchant Association. Delhi (Regd.) will be final and binding. " It was held by the learned single Judge that the provisions contained in clause 15 of reproduced earlier and particularly the last part of which shows that there had to be an arbitration. Further, in the application for membership given in the Constitution and Regulations there are the following words : "i/we further solemnly declare that in event of any dispute between me/us and other member of the Association I/we shall gladly use the good offices of the Association for amicable settlement of such dispute, according to the rules framed by the Association. "

( 3 ) THOUGH, all these three provisions look alike, they are not alike. In the printed clause 15, which contains the powers of the executive committee, it seems that any dispute between the members of the Association has to be referred to arbitration. It does not say that that arbitrator will be of the association or appointed by the Association. However, the Executive Committee of the Association has been given the power to appoint arbitrator. In the clause which appears on the bills it is stated that a judgment of the Tribunal or other authority will be final and binding. The judgment of a Tribunal or any other authority is a vague term because nothing is stated as to who or what that Tribunal is or who that authority is. The mention of the word judgment of the Tribunal seems to imply a private court set up by the association which will give judgment. It does not prima facie appear to be an arbitration agreement.

( 4 ) THE definition, an arbitration agreement is an agreement by which the parties to the agreement agree to submit future or present disputes lo arbitration for settlement. The wording of the clause appearing on the bill does not appear to be in this form. On the contrary it seems to us that the parties agreed to a private court to be set up by the association to give final judgment in their case. It is quite different from an agreement to refer disputes to arbitration. The application form shows that the good offices of the association have to be used for reaching an amicable settlement. An amicable settlement is also different from a reference to arbitration.

( 5 ) IT thus appeals that there are three different types of arrangement appearing for settling dispules. One to an arbitration, (2) to a Tribuual and (3) for an amicable settlement by the association. There is a reference that some rules and regulations will be made by the Association regarding how the arbitrations are to be conducted and how disputes are to be settled. It does not appear that