All the said agreements companytained an arbitration clause similar to that companytained in the first agreement.
The appellant, i.e., the Calcutta Tramways Co. Ltd., is the successor or the assignee of the said grantees.
Appeal by special leave from the judgment and order dated February 13, 1963, of the Calcutta High Court in Award Case No.
On August 30, 1951, the State of West Bengal entered into an agreement with the appellant whereby the Government agreed to purchase the undertaking of the appellant as provided in the said agreement.
L B N 3SCI 10 Mr. A.V. Viswanatha Shastri, learned companynsel for the appellant, companytended that all the rights of the Corporation of Calcutta under the various agreements stood transferred under the Tramways Act, 1951, and vested in the Government of West Bengal except only in regard to the sums payable to the Corporation and that, therefore, the Corporation companyld number rely on the arbitration clauses of the agreements and refer the disputes arising in respect of the sums payable in terms of the said agreements to arbitration.
The appellant, by special leave, has filed the present appeal against the said order of the High Court.
The said agreement was subject to an Act being passed by the appropriate Legislature ratifying the agreement and giving effect to it.
It was companystituted by Bengal Act II of 1888.
8 of 1963.
The Calcutta Tramways Act, 1951 W.B. Act XXV of 1951 was passed and it came into effect on October 18, 1951.
Under that Act the Government of West Bengal was practically substituted for the Corporation of Calcutta under the various agreements subject to a reservation that any sums payable under the said agreements shall be payable by the appellant to the Corporation Disputes arose as regards the track rent payable by the appellant to the Corporation and the dispute was referred to arbitration in accordance with the terms of the arbitration clause.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
245 of 1964.
In all these agreements the appellants predecessor in interest agreed to pay the rents to the respondents predecessors in interest in respect of the tramways companystructed, maintained and used by them.
The Corporation of Calcutta is number the successor of the properties of the Corporation of the town of Calcutta companystituted under the Bengal Act IV of 1876.
Though the parties appointed arbitrators in terms of the arbitration clause of the agreements, the appellant numberinated its arbitrator without prejudice to its rights and filed on January 7, 1963, an application in the Original Side of the Calcutta High Court, inter alia, for the determination of the question whether there was a valid arbitration agreement between the appellant and the respondent and for other incidental reliefs.
The application was heared by A.N. Ray, J. who held that there was an agreement between the appellant and the respondent and that the appellant was a party to the arbitration clauses companytained in the relevant agreements, that the respondent companyld make a reference to arbitration in terms of the said agreements and that the reference to the arbitrators was valid, legal and effective.
T. Desai and P.K. Mukherjee, for the respondent.
Under the Act the agreement entered into on August 30, 1951, between the Governor of West Bengal on the one part and the Calcutta Tramways Co. Ltd. on the other part was companyfirmed.
V. Viswanatha Sastri and D.N. Gupta, for the appellant.
28 that the words the said Corporation would include the Corporation and its successors.
The said agreement further provided in cl.
The Judgment of the Court was delivered by Subba Rao, J. On or about October 2, 1879, the Corporation of the town of Calcutta incorporated under Bengal Act IV of 1876 entered into an agreement in writing with Dillwyn Parrish, Alfresh Parrish and Robinson Souttar, hereinafter called the grantees whereunder the Corporation granted to the said grantees the right to companystruct, maintain and use certain tramways in Calcutta on payment of certain rents as provided in the said agreement The agreement companytained an arbitration clause which provided for referring any disputes arising under the said agreement to arbitration in the manner prescribed thereunder.
Different agreements were entered into between the successors of the Corporation of Calcutta and the grantees from time to time, namely, on November 22, 1879, September 2, 1893 and December 9, 1899, and were companyfirmed by appropriate Acts.
