Statutory by-laws governed cotton arbitration, validating time extension and preserving enforcement by a legal representative.

Statutory by-laws framed under the Bombay Cotton Contracts Act, 1932 were treated as governing the arbitration scheme and, under the saving provision in the Indian Arbitration Act, 1940, could validly permit the chairman to extend time for making the award. A reference made on the day after the contractual period expired on a Sunday was held within time, so the limitation objection failed. The arbitration agreement was also held to survive a party's death, allowing the legal representative to proceed, and the court would not disturb the award absent illegality on its face. The challenge to the award therefore failed.

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Issues: (i) whether the reference to arbitration was barred by limitation, (ii) whether the contractual by-law enabling the chairman to extend time for making the award was valid in view of the Indian Arbitration Act, 1940, and the Bombay Cotton Contracts Act, 1932, and (iii) whether the respondent, as the deceased party's legal representative, could proceed with the arbitration and rely on the award.

Issue (i): whether the reference to arbitration was barred by limitation.

Analysis: The period for making the reference expired on a Sunday, and the step taken on the next day was therefore within time.

Conclusion: The objection of limitation failed.

Issue (ii): whether the contractual by-law enabling the chairman to extend time for making the award was valid in view of the Indian Arbitration Act, 1940, and the Bombay Cotton Contracts Act, 1932.

Analysis: The by-laws of the recognised cotton association, framed under the Bombay Cotton Contracts Act, 1932, were treated as statutory by-laws. By virtue of the saving provision in the Indian Arbitration Act, 1940, those special by-law provisions operated notwithstanding the general arbitration statute. The chairman's extension of time under the by-laws was therefore within the contractual and statutory scheme governing the reference.

Conclusion: The challenge to the extension of time failed.

Issue (iii): whether the respondent, as the deceased party's legal representative, could proceed with the arbitration and rely on the award.

Analysis: The arbitration agreement survived the death of a party and could be enforced by or against the legal representative. The question whether the respondent was in fact entitled to enforce the agreement was one for the arbitrators to determine. No illegality appearing on the face of the award was shown, and the Court would not go behind the award to reassess the adequacy of the material before the arbitrators.

Conclusion: The challenge based on the respondent's entitlement to proceed failed.

Final Conclusion: The petition was rejected in all material respects, and the award was left undisturbed.

Ratio Decidendi: Statutory by-laws framed under a special Act governing cotton contracts prevail over inconsistent provisions of the general arbitration law, and the legality of an award cannot be impeached merely by questioning the adequacy of the material considered by the arbitrators when no illegality appears on the face of the award.

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