UTTAR PRADESH CO OPERATIVE FEDERATION LIMITED Vs. SUNDER BROS DELHI

JUDGEMENT

(1.) THIS appeal is brought, by special leave, from the judgment of the Punjab High Court, dated 22/02/1962 Civil Revision No. 331-D of 1958 whereby the High Court upheld and confirmed the judgment of the Appellate Court and set aside the judgment of the trial Court staying proceedings in the suit.

(2.) THE Uttar Pradesh Co-operative Federation Limited (hereinafter referred to as the 'Society') was registered under the Co-operative Societies Act No. II of 1912 at Lucknow and was carrying on the business of plying public carriers on Kanpur Delhi route. THE Society had been granted, for this purpose, permits by the Uttar Pradesh Government and Delhi Administration for seven vehicles. In March 1954, the Society entered into an agreement with the plaintiffs M/s. Sunder Brothers - through Bimal Kumar Jain and Dhan Kumar Jain by which they were appointed as Managing Agents for carrying on the business as public carriers. THE terms of the Managing Agency agreement were embodied in a letter, dated 2/03/1954 written by the Secretary of the Society. Clause 28 of the agreement reads as follows :

(3.) IF the arbitration agreement is not to be treated as a statutory arbitration under S. 46 of the Arbitration Act but an arbitration agreement under Section 47 of the Act, then the procedure to be followed for the arbitration under that agreement will be that provided under the Co-operative Societies Act and the Rules framed thereunder. Under S. 47 of the Indian Arbitration Act the arbitration will be governed only by such rules of the Co-operative Societies Act and rules framed thereunder as are not inconsistent with the provisions of the Indian Arbitration Act. In this connection it is necessary to refer to Rules 115, 116 and 117 of the Co-operative Societies Rules framed under S. 43 of the Co-operative Societies Act. Rule 115 states as follows :