CENTURY SPINNING AND MANUFACTURING CO LTD Vs. MOTILAL DHARIWAL

JUDGEMENT

(1.) THIS is an appeal under Section 39 of the Indian Arbitration Act (hereinafter referred to as the Act) by the defendant in Civil Suit No. 2-B of 1958 against the order of the First Additional District Judge, Raipur, passed on 25-3-1960 dismissing its application for staying the trial of the suit under Section 34 of the Act.

(2.) THE plaintiff alleged that two previous contracts between the parties were settled on 26-9-1957 and replaced by a new contract and the defendant agreed to supply cloth on the terms contained in the new contract. At that time, the defendant had also agreed to pay compensation in respect of 54 bales of cloth which were not supplied under the earlier contracts. THE suit is for recovery of damages for breach of the contract, dated 26-9-1957.

(3.) THE plaintiff, in reply to the application, stuck to his allegation that the contracts were completely substituted by a new contract on 26-9-1957. He admitted the earlier contracts; but pleaded that the conditions which are printed on the back of the contract forms were not brought to his notice and he knew nothing about them. He thus denied that he had agreed to them. He pleaded that as the new contract does not contain a clause or reference to arbitration, there is no question of staying the suit.