- (1.) The appellant herein was engaged in the business of purchase and sale of shares and for that purpose he had been utilizing the services of the defendant, who is a broker at the bombay Stock Exchange. The appellant herein filed a suit for recovery of Rs. 5,63,334/- against. M/s. Mahendra R. Shah and Bros. , who are the respondents herein. The respondents herein on receipt of the summons in the suit, filed an application under Section 34 of the indian Arbitration Act, 1940 for staying the proceeding on the ground that there is a pro- vision for arbitration as regards the dispute in the suit. The learned Single Judge of the High court accepted the contention of the respondents herein and directed the stay of proceed ings of the suit. Aggrieved, the appellant filed the First Appeal from the said order, which was dismissed. It is against the said order of the High Court, the appellant has filed this appeal by way of special leave petition.
(2.) Learned counsel appearing for the appellant urged that the arbitration clause printed on the bills does not include the persons like plaintiff and, therefore, the appellant being a non-member is not required to seek arbitration. We do not find any merit in the contention. One clause of the Bill, which is printed on the front, reads as under: "all the claims (whether admitted or not) difference and disputes between mem- ber and a non-member or a non-member (the terms "non-member" shall include a remisier authorized clerk or employee or any other person with whom the members shares brokerage) arising out of or in relation to dealing transactions and contracts made subject to the rules and bye-laws and regulations of the exchange or with reference to anything incidental thereto or in pursuance thereof or relating their construction, fulfillment or validity or relating to the rights, obligation and liabilities of remisier, authorised clerk, employees or any other persons with whom the member shares brokerage in relation to such dealings, transactions and contracts shall be referred to and decided by arbitration as provided in the rules, bye-laws and regulations of the Exchange. "
(3.) Another clause of the Bill, which is printed on the back side, reads as under: "in the event of any claim (whether admitted or not) difference or dispute arising between you and us out of these transactions the matter shall be referred to arbitration in Bombay as provided in the Rules, Bye-laws and Regulations of the Stock Exchange, Bombay. ";