RAGHAVAN, J. :- The appeal is by the defendants in a suit for return of price of cotton paid under a contract and also for reimbursement of moneys spent by the respondent (a public limited company) as warehouse charges, etc. The respondent entered Into a contract with the appellants to purchase 356 bales of cotton of the Hubli Jayadhar variety to conform to sample T. 3729 at a particular price F.O.R. Cannanore. Eighty per cent of the invoice price was to be paid before taking delivery and the balance subsequently. Of the goods despatched, 106 bales were found to be Hubli Jayadhar of an inferior quality : and the rest (250 bales) were found to be of the Laxmi variety from Annagiri and Adoni. The respondent accepted the 106 bales, the Hubli Jayadhar, submitting the dispute regarding their quality for arbitration by the East India Cotton Association, Ltd., Bombay, since the contract contained an arbitration clause. The Association reduced the price slightly, since the quality of the said 106 bales did not come up to the sample. Regarding the rest, viz., 250 bales, the respondent did not agree for arbitration, though the appellants claimed that that matter also should be submi