JUDGEMENT
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(1.)The principal point which this appeal by special leave raises for our decision relates to the construction of Ss. 32 and 33 of the Arbitration Act, 1940 (10 of 1940) (hereafter called the Act). That question arises in this way. The respondent, Union of India, filed a petition in the Court of the First Class Sub-Judge at Delhi against the appellant M/s- J. Burman and Co., through its proprietor Jawahar Lal Burman under Ss. 33 and 28 of the Act. The respondent alleged that a concluded contract had been entered into between the parties on August 31, 1949, for supply of 170 1/2 Cwt. of coconut oil by the appellant to the respondent. The respondent had advertised in the Indian Trade Journal for the said supply and the appellant had submitted its tender No. SM-1/104524. This tender was by the respondent which concluded a contract between the parties. The respondent's case was that the said contract was governed by general conditions of contract Form W.S.B. 133. These conditions included an arbitration agreement, Disputes arose between the parties regarding the said contract, and so in pursuance of the arbitration agreement they were referred to the two arbitrators appointed by the parties. After the arbitration proceedings had gone on for a considerable time before the arbitrators the appellant objected to their jurisdiction to de with the disputes on the ground that there was no concluded contract between the parties. This plea made it necessary for the respondent to move the Court for a decision of the question about the existence and validity of the arbitration agreement. It was on these allegations that the respondent in its petition claimed that it may be held that there was a concluded contract between the parties containing a valid arbitration agreement. The petition having been made under S. 28 along with S. 33 the respondent prayed that suitable extension of time be granted to the arbitrators for making the award. The appellant pleaded in defence that no concluded contract had been made between the parties and that there was no jurisdiction in, the Court to grant extension under S. 28. The other allegations made by the respondent in its petition were also traversed.
(2.)On these pleadings the learned trial Judge framed appropriate issues. He found that a concluded contract had been proved between the parties as alleged by the respondent that there was a valid arbitration agreement in the said contract and that the Court had jurisdiction to try the petition. Incidentally it may be pointed out at this stage that no specific joint had been raised in the pleadings of the appellant that the Court had no jurisdiction to entertain the petition under S. 33 or S. 32 of the Act. In fact the trial Judge has observed that it was not shown to him how the application was incompetent. Consistently with the findings recorded by him the learned trial Judge declared that there was a concluded contract between the parties under which the matter was duly referred to arbitration through an arbitration agreement clause in the contract. As a result of the declaration he held that there was a valid reference to arbitration between the parties. Consequently he granted a month's time to the arbitrators to make their award.
(3.)Thus decision was challenged of the appellant by its revision petition preferred in the High Court of Punjab at Chandigarh. The High Court has confirmed the finding of the trial court that there was a concluded contract which contained an arbitration, agreement. The question of jurisdiction under S. 33 of the Act was argued before the High Court and its attention was drawn to the conflict of judicial decisions on the point. The High Court, however, held that since the petition has been filed as a composite application under Ss. 28 and 33 it was open to the Court under S. 28 to enter upon the question of the existence or validity of the contract and so there was no substance in the point of jurisdiction raised by the appellant. In the result the appellants revision application was dismissed. It is against this decision that the appellant has come to this Court by special leave; and on his behalf Mr. Din Dayal has raised the same two points for our decision. He contends that the High Court was in error in holding that the trial court had jurisdiction to entertain the respondent's petition, and he argues that even if the point of jurisdiction raised by him fails it should be held that there was no concluded contract between the parties and so there was no scope or room or making any reference to arbitration. The first of these two contentions has been seriously pressed before us.
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