The case of the appellant was that the companytract was in violation of the provisions of the Forward Contract Regulation Act, 1952 Act 74 of 1952 , hereinafter called the Act.
The respondent incurred extra expenditure amounting to about Rs.
By its judgment dated November 19, 1963, the High Court held that the companytract was a number transferable specific delivery companytract and was number hit by the provisions of the Act and accordingly dismissed the application of the appellant.
Appeal by special leave from the judgment and order dated September 18, 1963 of the Calcutta High Court in Matter No.
56,000 still remained due to be paid by the appellant to the respondent.
On November 30, 1960 the appellant, however, intimated to the respondent that the companytract was void and illegal and requested that the security deposit should be refunded.
76,410 and after giving credit to the appellant for the amount of Security Deposit, a sum of Rs.
97 of 1963.
Before the Arbitrator companyld give his award, the appellant filed an application before the High Court under S. 33 of the Arbitration Act praying for a declaration that the arbitration clause was illegal and void and for an injunction restraining the respondent from prosecuting the arbitration proceedings.
The offer was accepted by the Director General, Supplies Disposals on behalf of the respondent by his letter No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
395 of 1965.
As the appellant failed to pay, the respondent took recourse to the arbitration cl.
By his letter dated December 1, 1960 the Director of Supplies wrote on behalf of the respondent that the companytract was legal and binding and as the appellant had failed to deliver the goods as provided in the agreement the respondent would purchase the goods at the risk of the appellant.
R. L. Iyengar and R. N. Sachthey, for the respondent.
K. Sen and D. N. Mukherjee, for the appellant.
The appellant deposited with the Reserve Bank of India the sum of Rs.
By its letter dated September 14, 1960, the appellant made an offer for sale to the respondent of 500 Bales 1,50,000 bags B Twills on the terms and companyditions mentioned in the said letter.
CAL DL 1/5750 L II Modi/158 dated September 16, 1960.
21 of the companytract and appointed an Arbitra tor to determine the dispute between the parties regarding the agreement.
20,182 50 P. towards security deposit on September 22, 1960 as required by the acceptance letter.
The date of delivery fixed under the companytract was November 30, 1960 and the respondent sent the appellant despatch instructions dated November 21, 1960, through the Director of Supplies Disposals.
The Judgment of the Court was delivered by Ramaswami, J. This appeal is brought, by special leave, from the judgment of the Calcutta High Court dated September 18, 1963 dismissing an application under S. 33 of the Arbitra tion Act.
