TMI Blog1978 (8) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there is an arbitration clause and the matter has to go to the arbitrator. 2. The subject-matter of this application, namely, that there is an arbitration clause and the matter should be referred to arbitration is the subject-matter of many reported cases. In spite of those cases which have fully clarified the whole legal position, there seems to be some misapprehension or misconception regarding the scope of S. 34 of the Arbitration Act which results in applications of the present type being moved on the assumption that because there is an arbitration clause hence all claims have necessarily to be referred to an arbitrator and a suit based on such a claim should be stayed. I must say that the argument that such a matter should be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roposition by the other side. Then only can there be a dispute. Under a contract for the supply of goods, the payment of price and the delivery of goods are concurrent conditions. This is the definition of a sale under the Sale of Goods Act. If goods have been delivered and price not paid, this is not a dispute within the meaning I have just ascribed to the word 'Dispute'. A mere failure to pay the price is not a disute. It is a mere non-performance of a specific term or condition of a contract. A dispute regarding the price could arise if, e.g., the purchaser says that goods are not of the proper quality and he refuses to pay the price, or he might say that goods have been delivered late, so, he would pay less price or he would hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifference and there was a move to refer the matter to arbitration. The terminology of S. 34 of the Act is restricted to cases where a person commences legal proceedings against any other party in respect of any matter agreed to be referred. Therefore, the vital question to be seen is what is the matter which has been agreed to be referred. In order to see what is the matter agreed to be so referred one has to look at the arbitration clause. The usual language of such arbitration clauses is that disputes or difference relating to or arising out of or in connection with the contract or in relation to any matter connected therewith shall be referred to arbitration. The normal terms of an arbitration clause requires that there should be dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er it is a suitable case for stay. In the absence of particulars and in the absence of specifications, the Court is unable to find out if the matter falls within the arbitration clause and has necessarily to reject the application for stay. 7. In dealing with the matter I have had the advantage of considering several reported judgments such as the judgment of this Court in National Research Development Corporation of India v. Bhupal Mining Works etc., 1973 Delhi Lt 37 and the judgment of Punjab Haryana High Court in Daman Anand v. Hira Lal, and the judgments mentioned therein as well as the judgment of the Supreme Court in Union of India v. Birla Cotton Spinning and Weaving Mills Ltd., . 8. In the judgments mentioned earlier, i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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