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Report No. 76

2.8. Recommendation to insert an Explanation below section 2(a).-

In our opinion, it would be advisable to clarify the position in view of the conflict discussed above. Practical considerations require the adoption of the first view!1 Of course, the initial agreement must, in any case, be in writing, and not oral.2 In the light of what we have stated above,3 we recommend the insertion of the following Explanation below section 2(a):-

"Explanation 1.-Where the members of any association agree in writing to abide by the rules or bye-laws of the association, and those rules or bye-laws contain a provision whereunder present or future differences between the members inter se or between a member and the association are required to be submitted to arbitration, they shall be deemed to have entered into a written agreement with each other within the meaning of this clause."

1. Para. 2.7, supra.

2. Narain Das (Firm) v. Bhagwan Das, AIR 1951 All 860.

3. See para. 2.7, supra.

Arbitration Act, 1940 Back

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