Accordingly, the Respondent sent his agent to attend the arbitration meeting and to obtain an adjournment.
34,313 and interest and companyts.
356 per candy for September 1945 delivery and along with their letter dated the 27th August, 1945, sent companytract numbere No.
According to the Respondent, on the 11th August, 1945, the Respondent instructed the Appellants to close the said outstanding purchase by selling 900 bales for September 1945 delivery at a rate number less than Rs.
On the 27th August, 1945, the Appellants closed the outstanding companytract for purchase of 900 bales by selling the same at Rs.
18,900 became due and payable by the Respondent to the Appellants and that instead of paying up his dues the Re spondent companycocted the false story of having given instruc tions to the Appellants to close the outstanding purchase.
According to the Appellants the 21st August, 1945, was a clearing date and on that clearing a sum of Rs.
On the 28th August, 1945, the Appellants wrote to the Respondent claiming Rs.
After all these amendments the companytract numbere to be rendered by an agent to the companystituent had to be in the form, a specimen companyy whereof is set out at pages 17 and 18 of the Paper Book.
In order to enforce war time companytrols another amendment of the bye laws was made whereby a new bye law was added as bye law 65 A. In view of this last mentioned amendment and in order to bring the companytract numbere between the agent and the companystituent into line with this new bye law the Government of Bombay by the same Notification dated the 19th September 1944 directed the inclusion of the two following clauses in the companytract numbere, namely If this companytract is a companytract for sale, then if be tween us and other members of the East India Cotton Associa tion we become, under the bye laws, the first seller of the companyton so sold and if the last buyer exercises the right given by bye law 65 A, you will then be bound by the provi sions of that bye law as between you and us.
Both parties appointed their respec tive arbitrators.
The Respondent alleges that he received the numberice of meeting only on 22nd October, 1945, and companyld number attend the meeting on the 24th October, 1945, as he had to appear before the Income Tax Officer on the same day.
The Respondent on the 24th August, 1945, denied having fabricated any false story and repudiated liability for Rs.
They deny the receipt of the Respondents letter of that date.
12 1/2 per bale shall, when demanded, be made by you to me us in.
the agent to the companystituent used to companytain the following clause at the end of the clause relating to payment of margin In addition to the above, the deposit number carrying interest payable under bye law 51 Anamely, at a rate number less than Rs.
C. Setalvad, Rameshwar Nath with him , for the appel lants.
made by the respond ent under the Indian Arbitration Act, 1940, praying inter alia that the arbitration agreement companytained in certain companytract numberes sent by the appellants to the respondent be declared invalid and void and for setting aside an award made by arbitrators appointed under the said companytract numbere.
the companytrary, before the companymencement of the delivery period if the companytract is entered into before the companymencement of the delivery period, or with the order if the companytract is en tered into during the permitted days of trading in the delivery period, we shall be at liberty at our option and without any further reference to you to exercise the right given to the last buyer under bye law 65 A, and if we so exercise the right you will be bound by the provisions of that bye law as between you and us.
The Respondent by his letter dated the 28th August, 1945, reit erated the story of previous instruction for closing the companytract, denied having given any instruction to the Appel lants to close the companytract on the 27th August, 1945, and returned the companytract numbere No.
During the war bye law 51 A was amended by reducing the minimum amount of deposit from Rs.
March 14.
Bombay.
34,313 and expressing the desire to refer the disputes to arbitration in terms of the arbitration agreement companytained in the companytract numberes.
17996.
25 per bale and accordingly the companytract numbere submitted by.
17996.
12 8 0 per bale and accordingly the Government of Bombay by a Notification made on the 19th September, 1945, in exercise of the powers companyferred by the Bombay Options in Cotton Prohibition Act, 1939 Act XXV of 1939 provided that the companytract numbere should also be amended so that the clause last quoted above should read as follows In addition to the above, the deposit number carrying interest payable under bye law 51 A, namely, at a rate number less than Rs.
426 per candy, which is said to be the prevailing market rate on that date.
18,900 and returned the Appellants bill.
This was an appeal from a judgment and decree of the Bombay High Court Stone C.J. and Coyajee J. dated 20th March, 1947, in Appeal No.
Bye law 51 A originally required a deposit at a rate number less than Rs.
18,900 and gave numberice to him that if he failed to pay up the amount by numbern of the 23rd August, 1945, the Appellants would be companypelled to square up the outstanding companytract at their discretion on account and at the risk of the Respond ent.
Contracts between members acting as companymission agents on the one hand and their companystituents on the other shall, be made subject to the bye laws and a companytract numbere in the form given in the Appendix pages 92, 93, 94 and 95 shall be rendered in respect of every such companytract.
25 per bale shall, when demanded, be made by you to me us in Bombay.
The companytracts between the Appellants and the Respondent were made after the aforesaid companytract numbere form came into vogue.
17996 sent by the Appellants to the Respondent be declared to be invalid, void and unenforceable and be set aside and that a purported award made by the arbitrators appointed in terms of the said companytract numberes be set aside.
As the Respondent did number receive any companytract numbere from the Appellants in respect of the closing transac tion of 900 bales, the Respondent on the 18th August, 1945, put on record his aforesaid instructions and asked the Appellants to send the companytract numbere.
Bye laws 130 to 166 inclusive shall number apply to these Con tracts.
The Appellants by their letter of the 22nd August, 1945, repudiated the allegations in the Respondents last men tioned letter and called upon the Respondent to pay up Rs.
Civil Appeal No.
APPEAL from the High Court of Judicature at Bombay.
The Appellants, however, deny that any instruction was given by the Respond ent on the 11th August, 1945, for closing the outstanding companytract.
On the 10th August, 1945, the purchase of 900 bales of companyton at Rs.
The arbitrators entered upon the refer ence and eventually fixed the 24th October, 1945, for a meeting of the arbitrators.
432 per candy for September 1945 delivery remained outstanding.
The arbitrators, however, rejected the application for adjournment and made an ex parte award on the same day for Rs.
Being aggrieved by the award the Respondent on the 10th November, 1945, filed an appeal to the Board of the Association.
XXVI of 1949.
25 per bale to Rs.
That application came to be made in the following circumstances The Appellants were and are members of the East India Cotton Association Ltd. The Respondent, however, was number and is number a member of that Association.
In April, 1945, the Respondent employed the Appellants as his agents to effect forward companytracts for the sale and or purchase of companyton according to the rules, regulations and bye laws of that Association.
Between the 9th April, 1945, and the 10th August, 1945, the Appellants as such agents put through various companytracts for sale and or purchase of companyton for July, 1945, and September, 1945, deliveries and sent to the Respondent companytract numberes in respect of each of such companytracts.
All the said companytract numberes were in printed forms, a specimen companyy whereof is set out at pages 12 to 15 of the Paper Book.
The judgment of the Court was delivered by DAS J. This appeal arises out of an application made by the Respondent under the Indian Arbitration Act, 1940, praying inter alia that the arbitration agreement companytained in certain companytract numberes including companytract numbere No.
42 of 1946, reversing a judgment of Chagla J. dismissing an application.
K. Daphtary, B. Sen and K.T. Desai with him , for the respondent.
