AI Drafter 
TaxTMI 
TaxTMI 
1923 (3) TMI 6
X X X X Extracts X X X X
X X X X Extracts X X X X
....rred to the arbitration of two disinterested persona, one to be chosen by each disputant, such arbitrators having the power to call in a third arbitrator. The award made by such arbitrators or any two of them shall be final and binding subject only to the right of appeal to the Appeal Committee All arbitrations held under this Rule must be held in accordance with Rule 5, and only shareholders and/or Directors shall be eligible to act on arbitrations held in the rooms of the Association. Associate members, however, shall be eligible to act as arbitrators when the arbitration is held in the seller's jetha and/or godown as provided under Rule 5. 2. Rule 13 provides: All questions in dispute (other than that of quality) arising out of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Fully Good Staple cotton on the terms and conditions mentioned in the contract. And whereas by another contract dated 4th day of September, 1918, the said Messrs Champsey Bhara and Company had also agreed to sell to the said Jivraj Balloo Spinning and Weaving Company, Limited, 100 bales of New M.G. Mundra Cotton Fully Good Staple on the terms and conditions therein contained. And whereas both the said contracts were made subject to the rules and regulations of the Bombay Cotton Trade Association, Limited. And whereas the goods tendered under the said contracts by the said Messrs, Champsey Bhara and Company were rejected by the Jivraj Balloo Spinning and Weaving Company, Limited, on the grounds contained in their letters dated 25th November....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of December, 1918. Signed and Published this 23rd day of December, 1918, by us, Purshotamdas Thakoredas and Vincent Alpe Granthatm in the presence of (Signed) PURSHOTAMDAS THAKOREDAS. V.A. GRANTHAM. Signed) J.A. GRANT. 4. An appeal was made to the Appeal Committee, who confirmed the award. The respondents then presented a petition to the Court asking that the award should be set aside. They alleged two grounds (1) that there was no question referable to the arbitrators under Rule 13(2) that there was an error of law on the face of the award, The case depended before Pratt J., who dismissed the petition. Appeal was taken to the Appellate Division of the High Court, and they reversed the judgment holding that there was an er....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n difference are referred to an arbitrator, whether a lawyer or a layman, he is constituted the sole and final judge of all questions both of law and of fact.... The only exceptions to that rule, are, cases where the award is the result of corruption or fraud, and one other, which though it is to be regretted, is now, 1 think, firmly established, viz., where the question of law necessarily aries on the face of the award, or upon some paper accompanying and forming part of the award. Though the propriety of this latter may very well be doubted, I think it may be considered as established. 7. This view has been adhered to in many subsequent cases, and in particular in the House of Lords in British Westinghouse Electric and Manufacturing Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n that case the legal proposition was stated in terms on which the award proceeded. In the present case, no legal proposition at all is stated as a ground of award. The reference to the letters is only in the narrative, and even when the letters are looked at they only contain the view of one party. To make this case equiparate with that of Landauer v. Asser the award would have to run somewhat thus:-"In respect of the ground of rejection contained in the letters of November 11 and 25, and in respect of Clause 52 of the Articles, I decide that, etc." 10. Now the regret expressed by Williams J. in Hodgkinson v. Fernie has been repeated by more than one learned Judge, and it is certainly not to be desired that the exception should be in an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the other point, which the learned Judges of the Court of Appeal found it unnecessary to decide, and which the trial Judge decided against them. He said that upon a proper construction of the contract the moment his client rejected the cotton in virtue of the decision by the arbitrators as to quality, he was entitled to do so, and the contract was repudiated or came to an end; that then the arbitration clause could no longer be appealed to and he said that inasmuch as this was a plea to jurisdiction the Court ought to decide it. 12. Their Lordships think that this argument is based upon a confusion of thought. The question of whether an arbitrator acts within his jurisdiction is, of course, for the Court to decide, but whether the arbit....