S.R. Das Gupta, J. - (1.) This is an application under section 34 and section 20 of the Indian Arbitration Act for stay of proceedings in Suit No. 2316 of 1951 Indo-China Trading Co., Ltd. v. C.M. Karanji & Co. (India) and for an order that the agreement, dated 16th August, 1950, be filed in this Court and a tribunal of arbitration be appointed by this Court and for costs.
(2.) The petitioner's case before me is as follows : By a contract in writing dated 16th August, 1950, the petitioner agreed to sell and the respondent agreed to buy 500 bundles of Chinese cassia of 78-80 pounds each at Rs. 44 per bundle. The said agreement contained an arbitration clause which is clause 7 of the terms and conditions thereof. The said arbitration clause reads as follows : "No claim shall be entertained by sellers unless made within 7 days from the date of delivery of the goods. In the event of any dispute arising if these cannot be settled amicably, either party shall have the right to call for arbitration on the matter in dispute under the rules of the local Chamber of Commerce, the party found to be at fault to be responsible for the costs of such arbitration."
(3.) The only other clauses of the terms and conditions of the said contract material for the present purpose are clauses 2 and 6 which run as follows : "Clause 2. - Buyers undertake to take delivery of the goods at the price and on terms agreed upon and to effect payment for same in the manner set out on reverse and they further solemnly assure undisputed payment of every bill before maturity. In the most unlikely event of any dispute, the same shall he settled as per clause 7 but on no account shall any bill be dishonoured." "Clause 6. -- In the event of any goods being short-shipped or short-landed, no responsibility attachis to sellers. In the event of goods having been shipped before the required time of shipment, buyers shall be entitled to a corresponding extension of payment. In the event of late shipment, no responsibility attachis to sellers if such delay is due to causes beyond their control or to act of God or through existence of any war, whether Great Britain is a belligerent or not. In all other cases of late shipment, subject to clause 4, buyers would be entitled to cancel the late portion of the order, but in that case no compensation for alleged loss of profits or otherwise shall be due to them.";