Broad arbitration clause in broker's bill can cover disputes with a non-member purchaser where contractual wording shows that intent.

A broadly worded arbitration clause in a broker's bill was construed to cover disputes between a broker and a non-member purchaser of shares where the language extended to all claims, differences and disputes arising from dealings and transactions. The back-side wording referring to disputes between "you and us" and providing for arbitration in Bombay confirmed the parties' intention to submit such disputes to arbitration. On that construction, the share-purchase dispute fell within the arbitration agreement and the suit was liable to be stayed under section 34 of the Indian Arbitration Act, 1940.

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Issues: Whether the arbitration clause printed on the broker's bill covered the dispute between the member and the non-member purchaser of shares, and whether the suit was liable to be stayed under section 34 of the Indian Arbitration Act, 1940.

Analysis: The clause in the bill was broad and comprehensive, covering all claims, differences and disputes arising out of dealings and transactions between a member and a non-member, including persons falling within the extended definition of non-member. The wording of the back-side clause, referring to disputes between "you and us" out of the transactions and providing for arbitration in Bombay, further confirmed that the parties intended such disputes to be referred to arbitration. On that construction, the appellant's dispute fell within the arbitration agreement.

Conclusion: The dispute was covered by the arbitration clause and the stay of the suit was justified; the contention of the appellant failed.

Ratio Decidendi: A broadly worded arbitration clause in a broker's bill can validly extend to disputes between the broker and a non-member purchaser where the contractual language shows an intention to refer such disputes to arbitration.

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