Amitava Lala, J. - (1.) This is an application under Section 20 of the Arbitration Act, 1940. It appears that an agreement was entered into by or between the parties on 5th August, 1985. Clause A of such agreement speaks as follows:- "A. The party of the Second Part have bought 4, 49, 149 number of shares of Martin Burn Limited from the party of the First Part and his Associates."
(2.) Save the Clause A as above other two Clauses are important. One relates to the subject matter of the dispute and other relates reference of the dispute to arbitration. First of such Clause is Clause 1 of the agreement which provides as follows:- "The party of the First Part (which expression shall unless excluded by or repugnant to the subject or context be deemed or mean and include their respective heirs, executors, administrators, nominees and representatives) shall have the right to re- purchase all or any of the above shares in one or more instalments, but such right cannot be exercised before 1st August, 1990 and thereafter can be exercised upto 1st August, 1995 at a price to be mutually agreed between the parties but not less than the purchase price per share."
(3.) The Arbitration Clause being Clause 5 speaks as below:- "In the event of any dispute arising out of this Agreement, the same shall be referred to arbitration of the arbitrators, one to be appointed by each party and the arbitrators before entering on the reference, shall appoint an Umpire. The arbitration will be in accordance with the provisions of the Indian Arbitration Act, 1940.";