PENUKONDA RATHAKRISHNAMURTHY Vs. GANAMUKALA CHENGALRAYA CHETTY CHALAMAYYA CHETTY AND CO. AND ORS.

JUDGEMENT

(1.) THIS appeal arises out of an applicaticn by the appellant, under Section 30 of the Arbitration Act, 1940, to set aside an award of an umpire to whom matters in controversy in an arbitration had been referred, upon disagreement by two arbitrators. The arbitration related to five contracts between the appellant, as seller and the first respondent (hereinafter called the respondent), as buyer, of various quantities of yarn. The arbitrators agreed regarding two contracts of December 1941 vaida or delivery. They disagreed with regard to three remaining contracts, which were for January 1942 vaida. The arbitrators made two awards (1) with respect to the two contracts upon which they agreed and (2) respecting the three contracts upon which they disagreed. The matters relating to the three contracts, where there had been disagreement, were referred for decision to the umpire who was the second respondent in the applicaticn and who is the second respondent in the appeal. Kunhi Raman, J., dismissed the application to set aside the award and, against his decision, the appellant seller has preferred this appeal.

(2.) THE appellant and the respondents respectively the seller and the buyers under the contracts, carry on business in Madras as dealers in yarns. Each is a member of the Yarn Merchants Association (hereinafter called "the Association"). The objects of the Association include (a) to form a code or codes of practice to simplify and facilitate transactions, for which purposes there are bye -laws in its articles or regulations. Article or bye -law 44 provides as follows:

(3.) THE seller and the buyers, when becoming members of the Association, agreed in writing upon the application form for membership, to act in accordance with the rules and regulations of the Association.