N. RAJAGOPALA AYYANGAR, B. P. SINHA, J. R. MUDHOLKAR, K. SUBBA RAO, T. L. VENKATARAMA AYYAR
Khardah Company – Appellant
Versus
Raymon And Company India Private LTD. – Respondent
Judgment
VENKATARAMA AIYAR, J. : These are appeals against the judgment of the High Court of Calcutta, setting aside an award of the arbitrators, which directed the respondents to pay to the appellants Rs. 41.250 as compensation for breach of contract, on the ground that the said contract was in contravention of a notification of the Central Government dated October 29, 1953, and was in consequence illegal and void. The facts are that the appellants own a Jute Mill at Calcutta and carry on the business of manufacture and sale of jute. On September 7, 1955 they entered into a contract with the respondent who are doing business as dealers in jute, for the purchase of 750 bales of jute cuttings (raw) of Pakistan at Rs. 80 per bale of 400 lbs, to be delivered in October, November and December at the rate of 250 bales every month. Clause 14 of the agreement provides that all disputes arising out of or concerning the contract should be referred to the arbitration of the Bengal Chamber of Commerce. The respondents failed to deliver the goods as agreed whereupon the appellants applied to the Bengal Chamber of Commerce for arbitration in accordance with Cl. 14 of the agreement. The responden
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