RALLIS INDIA Vs. B V MANICKAM CHETTI AND CO MADRAS

JUDGEMENT

(1.) THIS is an appeal under section 39 of the Indian Arbitration Act, against an order of the Third Assistant City Civil Judge, Madras setting aside an arbitration award and superseding the reference. The proceedings out of which this appeal arises had an unfortunate and chequered career. The appellant whom we shall refer to hereafter as the seller entered into three contracts for the sale of groundnut oil cake to the respondent, two of them hang been entered into 13-111951 and the third on 23-11-1951. The contracts were signed on be. half of the buyers by one of the partners and the terms of the contract provided that in case disputes arose under the agreements, such disputes should be settled by arbitration under the rules of the Madras Chamber of Commerce. It was also provided in the contracts that the sellers could resell the outstanding portion on ac-count and risk of buyers after notice, in case the latter were at default and also to recover from them all damages sustained by reason of their default. Certain deliveries of groundnut cakes were effected by the sellers within the time stipulated; the buyers accepted them and extended the time for delivery in regard to the balance of 415 tons. Letters evidencing extension of time for the performance of the contracts were signed by another partner of the buyers' firm. on 2-6-1952, the sellers cancelled the outstanding the buyers defaulted sing contracts alleging that in taking delivery of the balance and claimed damages in a sum of Rs. 11,300/-, after giving credit to the amount paid as advance by the buyers. A dispute arose; that was submitted to arbitration by a nominee of the madras Chamber of Commerce. Mr. Rambling, who gave his award on 10-3-1953 in favour of the sellers for the sum claimed by them. The buyers challenged the award on the original side of this Court in O. P. No. 216 of 1953 (Mad ). Chandra reddi, J. , by his judgment dared 3-12-19 set it aside.

(2.) THEREUPON the sellers applied to this Court under section 20 of the Arbitration act praying that the three arbitration agreements contained in the contracts referred to earlier might be filed into Court and reference to arbitration be directed in accordance therewith. This application met with no success in the Court of the first instance; but on appeal Raia Mannar, C. J. , and Panchapakesa Aiyar, J. , held that the sellers were entitled to have the agreements filed and the disputes referred to arbitration. on that finding the learned judges remanded the application to the Judge sitting in Chambers to pass consequential orders. The matter then came up before Balakrishna Aiyar, J. , on 6-11-1956 when the learned judge directed the filing of the three agreements for arbitration and a reference of the disputes to the arbitrator or arbitrators to be appointed by the Madras chamber of Commerce In accordance with the Arbitration rules of that body. In that order was also recorded an agreement between the parties by which the madras Chamber of Commerce was enjoined to inform the parties of the name of the arbitrator or arbitrators whom it proposed to appoint two weeks In advance of such arbitrators entering upon their duties. In pursuance of the order of this Court the Madras Chamber of Commerce appointed Mr. F. C. Johnston, the second respondent to this appeal as arbitrator. He duly entered on his duties and after an enquiry delivered his award on 22-61957 in the form of a special case stating in paragraph IV thereof thus:

(3.) ON behalf of the appellant it is contended that the questions of law referred to for the determination of the Court are contained in paragraphs II and III of the award and that in ale circumstances of the case they should be regarded as sufficiently definite. we, cannot, however, agree with this contention. As we shall show presently some of the questions are mixed questions of law and fact. For example, one of the contentions of the buyers recorded in the award is.