S.Datta, J. - (1.) THIS is an application for stay of a suit under Section 34 of the Arbitration Act made by Indian Mutual General Insurance Society Ltd. against Hardev Singh Motiram and Auto Finance Corporation who have filed a suit being Suit No. 808 of 1967 against the Insurance Company for a sum of Rs. 13,184/70p. due to them under the Policy in respect of low or damage caused to the vehicle insured.
(2.) THE said policy contains as usual an Arbitration Clause relevant of which is a follows : Clause (8) "All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference of if they cannot agree upon a single Arbitrator, to the decision of two Arbitrators, one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. THE Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Society. If the Society shall disclaim liability to the Insured for any claim hereunder and such claims shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained that the claim shall for all purposes be deemed to have abandoned and shall not thereafter be recoverable hereunder." There is also a writing in rubber stamp below Clause (9) at the bottom of the page which is as follows: "In case of any claim arising in respect of the property hereby insured the same shall be settled and paid in Madras and it is hereby agreed that no suit or action against the Society for the purpose of enforcing any claim on this Policy shall be instituted by the Assured in any Court other than a Court situated in the City of Madras."
(3.) THERE is also written in rubber stamp in the Schedule of the said policy as follows: "Arbitration proceeding contemplated in the Policy shall take place only in the City of Madras".;