The plaintiff instituted a suit for the recovery of Rs. 1,000/- as damages for wrongful use and occupation of the suit premises with proportionate costs against the defendants. The plaintiff alleged that 10 years lease in favour of the defendants, of Bhagwan Niwas situate in Jammu expired on the 11th of January, 1959. The defendants were required to hand over vacant possession of the premises together with furniture and fittings on that date which the defendants failed to do.

It was alleged that a notice under Sec. 80 of the Civil Procedure Code was delivered to them on 25th and 26th August 1958, informing the defendants that the plaintiff will charge Rs. 500/- P. M. as damages for wrongful use and occupation of the premises. The defendants failed to vacate the premises on the date mentioned in the notice and hence this suit for recovery of Rs. 1,000/- as damages for wrongful use and occupation of the premises at the rate of Rs. 500/- P. M. for a period of two months.

The defendants resisted the suit on the grounds, that the suit was not maintainable in view of arbitration clause in the lease agreement and in view of Sec. 28 of the Contract Act, that the Jammu and Kashm