P.L. Bhargava, J. - (1.) THIS is an application in revision, under Section. 115, Civil P. C. and it is directed against an order of the second Civil Judge of Kanpur passing a decree in terms of an award. The application has been filed by the Firm Narain Das Balak Ram, who will hereafter be referred to as the applicants, against the Firm Bhagwan Das Kedar Nath, who will hereafter be described as the opposite party. The facts, which have given rise to the application are these: On 1-6-1946, Messrs. Har Govind Agarwal and Rameshwar Das Darolia filed a petition, under Section 14, Arbitration Act, 1940, in the Court of Munsif, City Kanpur. In that petition, they stated that there were certain disputes between the parties, relating to certain transactions entered into by the Firm Bhagwan Das Kedar Nath -- a firm registered with the National Chamber of Commerce, Ltd., Kanpur, according to the rules and bye-laws of the Chamber -- for and on behalf of the applicants; and that the disputes were referred, in accordance with the rules and bye-laws of the Chamber, to the Arbitration Board of the Chamber, in pursuance of an agreement between the parties. They further stated that the opposite party had nominated one of them, namely, Har Govind Agarwal, as their arbitrator but the applicants failed to nominate any arbitrator; that, according to the rules and bye-laws of the Chamber, one of them, viz , Rameshwar Das Darolia, was thereupon appointed an arbitrator on behalf of the applicants, by the managing agent of the Chamber; and that after their appointment as arbitrators they made an award, which was being filed in Court. The arbitrators prayed that judgment may be pronounced and a decree passed in terms of the award in favour of the opposite party against the applicants. The petition filed by the arbitrators was supported by the opposite party, but it was opposed on behalf of the applicants, whose contention was that there was no agreement for reference to arbitration; that the award was vitiated owing to misconduct; and that the transaction between the parties was in the nature of a wagering contract.
(2.) THE learned Munsif found that there was no valid agreement between the parties to refer the dispute to arbitration and rejected the petition filed by the arbitrators. On appeal, the learned Civil Judge came to the Conclusion that there was such an agreement between the parties and, after disposing of the other matters in controversy, made a decree in terms of the award. In this revision, learned counsel for the applicants has reiterated the objection, raised on behalf of the applicants that there was no valid agreement between the parties to refer the dispute to arbitration; and contended that the decision of the learned Civil Judge is erroneous and liable to be set aside. Section 2, Arbitration Act, defines "arbitration agreement" as a written agreement to submit present or future differences to arbitration, whether an arbitrator is named therein or not. The question, therefore, arises whether there was any written agreement to submit the dispute, which bad arisen between the parties, to arbitration.
(3.) THE rules and bye-laws of the National Chamber of Commerce, Ltd , Kanpur, contain a provision for the reference of disputes, between the firms registered with the Chamber, to arbitration (vide Rule 114). THE firm Bhagwandas Kedar Nath (opposite party) was registered with the Chamber but the firm Narain Das Balak Ram (applicants) was not so registered. THE opposite party alleged that the applicants had agreed to abide by the rules and bye - laws of the Chamber, including the rule relating to reference of disputes to arbitration. THE learned Civil Judge has found that there was an oral agreement between the parties to abide by the rules and bye-laws of the Chamber; and, relying upon the case reported in Mohanlal v. Bissesarlal, A. I. R. (34) 1947 Bom. 268, the learned Judge has held that that amounted to a valid agreement of reference to arbitration.;