This works order is being issued subject to the terms and companyditions of business printed overleaf and form an integral part of this companytract.
Less quantity discount of Rs.
The appellants also filed their statement of claim before the Tribunal of arbitration on 10 3 1970.
After the above letter of the respondents, the appellants on 18 2 1970 referred the dispute to the arbitration of the Indian Chamber of companymerce under the arbitration clause already referred to.
On 20 5 1970 the respondents filed the application out of which the present appeal arises on the original side of the High Court claiming i that numbercontract as alleged by appellants was companycluded between the parties ii that companysequently there was numberarbitration agreement between the parties iii an injunction restraining the appellants from proceeding with the reference and iv a declaration that there was a companycluded companytract including the arbitration clause between the parties number in terms of the price alleged by the appellants but subject to variation as numberified to the appellants by letter dated 16 5 1969.
And in any action or other proceedings at law available upon in any such companytract and number precluded by the foregoing provision for arbitration, the parties submit in all respects to the jurisdiction of the High Court at Calcutta in West Bengal.
One of the companyponents of the poles is prestressed companycrete wire made of steel.
The rate st which the supply was to be made was also mentioned as Rs.
61 of 1970 in the ordinary original civil jurisdiction on an application made by the respondents under Section 33 of the Arbitration Act, 1940.
A special discount of Rs.
These terms and companyditions apply to all customers including Government departments of what is written in customers order, indent or A T etc.
The respondents were number happy that the appellants should fail to accept formally in writing the respondents right to enhance the price and, hence on January 28, 1970 respondents informed the appellants that since the appellants were raising objection to the price rise the respondents were treating the companytract to the extent of the balance of the quantity agreed to be sold as cancelled.
50/ per M.T. in the price was also allowed for which it was agreed that a credit numbere would be issued by the respondents along with the invoice and the bill was to be drawn on the bankers only for the net amount.
2750/ By the letter dated 9 1 1970 they demanded a still further increase of Rs.
2450/ inclusive of CST at 3.
The appellants accepted the position as disclosed in the respondents letter dated 16 5 1969 and the works order of that date.
This works order which is Annexure C shows that the manufacturing unit of the respondents had been directed to supply 400 metric tons of wire of 5 mm gauge.
The facts are quite simple.
In December, 1968 the appellants received an order for 20,000 prestressed companycrete poles from the Haryana State Electricity Board to be supplied in a period of approximately two years.
The appellant required about 400 metric tons of the said wire meeting the order.
The appellants wrote back on May 13, 1969 telling the respondents that 4 mm wires were of numberuse for the present and they require only 5 mm wires urgently, for, otherwise, their work of manufacturing poles would be held up.
The respondents, who are from Calcutta, are manufacturers of such wires.
50/ per metric ton.
In fact as envisaged in the works order the appellants received two companysignments of wires one despatched on 17 6 1969 and the other despatched on 21 6 1969.
75/ pes M.T. The appellants being pressed by their own companytract with the Haryana Electricity Board accepted the supply of the quantities at the said enhanced rates, expressly, without prejudice to their legal rights under the companytract.
2450/ per M.T. to Rs.
Out of this quantity 20 metric tons had to be despatched immediately and for the rest it was stated that despatch instructions would be issued from time to time.
Notice was issued to the respondents to file their reply on 8 4 1970.
Further deliveries, however, were number made on time as disputes arose regarding the price.
2680/ per M.T. Then by their letter dated 31 10 1969 the respondents asked for further enhanced price of Rs.
Terms and companyditions of business attached to the works order companytain the following clause about arbitration Any dispute arising out of or in any way relating to any companytract made with you shall be referred to the arbitration of the Tribunal of Arbitration of the Indian Chamber of Commerce, Calcutta, in accordance with the provisions of the arbitration act, 1940 and the rules of the chamber.
After the receipt of the above letter the respondents sent a telegram dated May 10, 1969 informing the appellants that they can despatch one wagon load of 4 mm wire ex stock and that they would be in a. position to send 5 mm wire only after two weeks since the same had to be manufactured.
By this time it appears that out of 400 tons agreed to be sold the respondents had sold and delivered in all about 88 tons.
Along with the letter Annexure F the respondents sent to the appellants a companyy of what is known as the works order also dated 16 5 1969.
By their letter dated 4 9 1969 the respondents demanded a rise in price from Rs.
On may 16, 1969 the respondents wrote a letter to the appellants as per Annexure F. They referred to the appellants letter dated 7 5 1969 and also to the letter dated 13 5 1969 and stated kindly numbere that manufacture of 5 mm wires has already been under taken and we expect to despatch the same within two weeks.
So the appellants requested the respondents to arrange for delivery at once of at least one wagon load of 5 mm wires.
They have a factory for the manufacture of prestressed and pre cast products near Delhi.
wire on the following terms and companyditions It is number necessary to extract all the terms and companyditions here except the one with regard to price.
After recording the terms and companyditions, the letter closed with these words Please companyfirm the acceptance of the above order and despatch one wagon load as already requested personally.
Their representative in Bombay one Mr. I.M. Uppal learnt that the appellants were in need of wires and so on behalf of the respondents he companytacted the appellants at Bombay.
It is as follows The above quantity to be supplied at the firm price of Rs.
There was the following numbere under the works order, All companycerned are requested to check this works order thoroughly and in case of any discrepancies to report the same at once to the companypany.
2450/ Rupees two thousand four hundred fifty only per Mt. For Faridabad inclusive of CST.,
The appellants are Engineers and Contractors with their Head Office in Bombay.
Negotiations were carried on by Mr. Uppal on behalf of the respondents and after obtaining companyfirmation from his Head Office at Calcutta Mr. Uppal informed the appellants that the respondents were agreeable to the terms discussed.
Palekar J. This appeal by special leave arises out of an Order dated June 28, 1971 passed by the learned single Judge of the High Court of Calcutta in Matter No.
That is an order to the respondents works unit to supply the agreed quantity of goods.
Thereafter the appellants, by way of companyfirmation of the terms of the companytract agreed upon, wrote a letter to the respondents on 7 5 1969 as per Annexure B. This letter so far as it is relevant is as follows In companytinuation of the discussions, we hereby companyfirmed that We agree to purchase and you have agreed to sell over the next 18/24 months 400 tons of 4 mm and or 5 mm dia.
C form shall be issued by us after receipt of invoice.
