These two appeals arise under the provisions of the Indian Arbitration Act from the orders of the Subordinate Judge of Vizagapatam, allowing O.P. No. 36 of 1946 and dismissing O.P. No. 24 of 1936 on his file.

The appellant had entered into three contracts with the contesting respondent for the sale of groundnut and though the contracts themselves have not been exhibited in the court below, the specimens have been admitted by consent of parties in order to know the nature of the agreements. The first contract related to the sale of 500 bags of groundnut and is dated 23rd August, 1945, at the rate of Rs. 20-12-0 per bag with the stipulation that the delivery would take place in December, 1945. Towards the price, a sum of Rs. 2,500 was paid as advance. The second contract dated 26th August, 1945, related to the sale of another 500 bags of groundnut at the rate of Rs. 21 a bag with the stipulation for delivery in December, 1945 itself. As advance towards this transaction a sum of Rs. 2,500 was also paid. The third contract dated 13th November, 1945, related to the sale of 1,000 bags of groundnut at the rate of Rs. 24-12-0 a bag for which the adyance paid was Rs. 5,000 with a similar stipulation that delivery should take place in December, 1945. In all, therefore, a sum of Rs. 10,000 was paid as advance for all the three contracts for the delivery of 2,000 bags of groundnuts. The appellant also supplied 97,7 gunnies for collecting the groundnuts. In the contracts there was an agreement that in case of dispute arising between the parties regarding the performance and fulfilment of the terms of the contracts, they would be subject to the decision of the Vizianagaram Commercial Association (Registered) and such a decision would be binding on all the parties.

Presumably, on account of the fact that the price of groundnut rose abnormally, during the intervening period, i.e., between the dates of the signing of the contracts and the date of their fulfilment, the contesting respondent did not act according to the terms and no delivery of groundnut bags was ever made. The appellant therefore referred the matter to the Vizianagaram Commercial Association (Registered) which appointed the arbitrators who enquired into the matter and passed an award which was to the effect that the contesting respondent had to pay a sum of Rs. 27,672-6-4 to the appellant made up of a sum of Rs. 16,375 being the damages due on account of the non-delivery of the groundnut bags, Rs. 10,000 being the advance received by the contesting respondent under the three contracts, Rs. 600 being the cost of 977 empty gunnies which were not returned and Rs. 697-6-4 being the interest on the advance amount and the price of gunnies at 1 per cent. per mensem from 31st December, 1945, till the date of the award, viz., 18th July, 1946.

O.P. No. 24 of 1946 was by the Vizianagaram Commercial Association (Registered) who appointed the arbitrators, under section 14 of the Act for filing the award and passing a decree in terms thereof. O.P. No. 36 of 1946 was by the contesting respondent for setting aside the award; and these two were tried together by the learned Subordinate Judge who, as stated above, allowed O.P. No. 36 of 1946 and dismissed O.P. No. 24 of 1946. Hence the two appeals by the aggrieved party.

Various points were raised before the learned Judge of which the most important ones were whether the contracts in question were prohibited by the Oil Seeds (Forward Contracts Prohibition) Order, 1943 and if so whether the award is null and void. The lower Court’s finding on this point was against the appellant. In this Court the only serious contest between the parties related to the decision on this controversy. Though the respondent feebly attempted to question the correctness of the decision of the learned Judge regarding the validity of an award made by three members of the Vizianagaram Commercial Association (Registered) as being one made by the association i