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Report No. 76

2.9. Section 2(a) and arbitration at the option of party.-

The question has arisen whether an agreement whereunder arbitration is to be resorted to at the option of a party would be valid. There are observations1-2 to the effect that such a provision would not constitute a valid submission, but there are also decisions to the contrary.3-4 In England, such an agreement seems to have been regarded as a valid submission.5 The matter is, in our opinion, of such a nature as can be left to the courts rather than made the subject of express legislative provision.

1. Burjor v. Ellerman City Lines Ltd., ILR 49 Born 854: AIR 1925 Born 449.

2. Maritima Italiana Steamship Co. v. Burjor, ILR 54 Born 278: AIR 1930 Born 185.

3. Brindaban Chandra v. Bisheshwar Ltd, ILR (1937) 1 Cal 606: AIR 1938 Cal 100.

4. Kedar Nath v. Kesho Ram Cotton Mills Ltd., ILR 1950 1 Cal 553.

5. Woodall v. Pearl Insurance Co., (1919) 1 KB 593: (1918-19) All ER 544.

Arbitration Act, 1940 Back

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