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Issues:
1. Validity of arbitration agreement between the parties. 2. Compliance of contracts with the provisions of the Forward Contracts (Regulation) Act 1952 and bye-laws of the Exchange. 3. Interpretation of prescribed form requirements in the contracts. 4. Legal implications of non-compliance with prescribed form. Analysis: The judgment involves two appeals challenging a Calcutta High Court decision on the validity of arbitration in disputes between the parties. The appellant, a member of the East India Jute & Hessian Exchange Limited, entered into contracts with the respondent, leading to disputes and arbitration reference. The High Court held the contracts illegal, lacking a valid arbitration agreement, as they did not comply with the Forward Contracts (Regulation) Act 1952 and Exchange bye-laws. The Act empowers recognized associations to make bye-laws for forward contracts, specifying contraventions that render contracts void or illegal. The Central Government notification extended Act provisions to jute goods in Calcutta. The Exchange formulated bye-laws for jute goods trading, mandating written contracts in prescribed forms. Contraventions of specified bye-laws render contracts illegal under the Act. The central issue revolved around whether the disputed contracts adhered to the prescribed form in the Exchange's Working Manual. The appellant argued substantial compliance sufficed, while the respondent contended strict adherence was necessary. The High Court found the contracts violated prescribed form requirements, rendering them illegal under the bye-laws. The judgment emphasized the mandatory nature of Exchange bye-laws, particularly regarding transferable specific delivery contracts in jute goods. Non-compliance with prescribed form requirements, such as specifying notice periods, rendered contracts illegal and void. The presence of a clause referencing standard contract terms did not remedy the lack of specific contract details, leading to contract invalidity. Ultimately, the Supreme Court upheld the High Court decision, dismissing the appeals due to the contracts' non-compliance with prescribed form requirements. The judgment highlighted the significance of adhering to Exchange bye-laws for contract validity and legality, reinforcing the mandatory nature of prescribed form provisions in ensuring contract enforceability.
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