9,00,000/ together with interest thereon at the rate of six per cent per annum from the date of the suit and 4 for the aforesaid purposes for an order that all enquiries be made, directions given, orders passed and Traction be directed to hand over to Kamani all documents, files, reports, companyrespondence etc.,
On January 22, 1962 Traction took out a numberice of motion for an order staying the proceedings in the suit pursuant to s. 3 of the Arbitration Protocol and Convention Act, 1937, and or s. 34 of the Arbitration Act, 1940 and or s. 151 of the Code of Civil Procedure, 1908 and or the inherent powers of the High Court in the alternative for an order that Kamani, its servants and agents be restrained by an order and injunction from in any manner proceeding further with or from taking any further steps in the suit.
Appeal from the judgment and decree dated November, 15/16, 1962, of the Bombay High Court in Appeal No.
removed by the representatives of the Traction.
Kantawalla, J. refused the motion and the order passed by him was companyfirmed in appeal by the High Court.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
196 of 1963.
C. Setalvad, M.R. Parpia, J.P. Thacker, O.C.Mathur, B. Dadachanji and Ravinder Narain, for the appellant.
The agreement companytained an arbitration clause in Articles X, which provided All disputes arising in companynection with this agreement during the period of the agreement or thereafter shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the Rules of the said International Chamber of Commerce.
On September 1, 1961, Kamani instituted suit No.
The respondent Kamani Engineering Corporation Ltd hereinafter called Kamani is a companypany registered under the Indian Companies Act, 1913.
T. Desai, Tanubhai D. Desai and I.N. Shroff, for the respondent.
Kamani carries on business, amongst others, as an engineering companycern.
On April 22, 1959 Kamani entered into a Colloboration agreement with Traction whereby the latter undertook to provide to Kamani technical assistance for the companystruction of overhead railway electrification, tramway systems and trolley buses in India, Burma, Ceylon and or Nepal.
32 of 1962.
April 18.
The Judgment of the Court was delivered by SHAH J. The question which fails to be determined in this appeal with certificate granted by the High Court of Bombay against an order refusing a motion for stay of a suit, is Whether an agreement to refer a future dispute to arbitration according to the rules of the International Chamber of Commerce between a Company registered under the Indian Companies Act and a foreigner is binding upon the former.
The facts which give rise to this question are these Societe De Traction Et DElectricite Societe Anonyme hereinafter called, for the sake of brevity, Traction is a Corporation incorporated under the laws of Belgium and carries on business as companysulting and companystruction engineers at Brussels.
296 of 1961 in the High Court of Judicature at Bombay on its original side, inter aria, for 1 a decree declaring that Traction had companymitted diverse breaches of the Collaboration agreement and the agreement was on that account terminated by Traction, and Kamani stood discharged from all its obligations thereunder 2 a decree for accounts of the items companytained in the invoice referred to in paragraphs 24 and 25 of the plaint and for ascertainment of the amount in the light of the companytentions and submissions set out 3 for a decree directing Traction to pay Its.
