Anderson Wright Ltd vs Moran And Company on 1 November, 1951
The appellate Judges of the High Court in our opinion held
rightly that the decision in A. M. Mair and Company v.
Gordhandass (1) was not in any sense conclusive in the
present case on the question of the dispute in the suit
being included in the arbitration agreement. The report
shows that the dispute in that case was whether the
appellants had made the contract in their own right as
principals or on behalf of the Bengal Jute Mill Company as
agents of the latter. The decision -of this question was
held to turn upon a true construction of the contract and
consequently it was a dispute under or arising out of or
concerning the contract. The judgment proceeds on the
footing that there was in fact a contract between the
parties and the only dispute was in which character they
were parties to it, the respondents contending that the
appellants were not bound as principals while the latter
said that they were. Mr. Justice Fazl Ali in delivering the
judgment pointed out that the error into which the learned
Judges of the appellate bench of the High Court appeared to
have fallen was their regarding the dispute raised by the
respondent in respect of the position of the appellants
under the contract as having the same consequence as a
dispute as to the contract never having been entered into.
In this case it is certainly not admitted that the
respondent was a party to the contract. In fact that is the
subject-matter of controversy in the suit itself. But, as
has been said already, the question having been raised , in
this application, under section 34 of the Arbitration Act,
the Court has undoubted jurisdiction to decide it for the
purpose of finding as to whether or not there is a binding
arbitration agreement between the, parties to the suit. It
has been said by Chakravartti C.J. and in our opinion
rightly, that if the person whose concern with the agreement
is in question is a signatory to,the contract and formally a
(1) [1950] S.C.R. 792.