# Educalion v. Rice, fl911J A.C. 179, Lor.alGovern U Boartlv

- **Citation:** [1963] 2 S.C.R. 943
- **Court:** Supreme Court of India
- **Decided:** 1963
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/educalion-v-rice-fl911j-a-c-179-lor-algovern-u-boartlv-2557
- **Pages:** 11

## Headnote

•
•
•
•
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· 2 s.c.R.
SUPREME OOURT REPORTS 943
STA'.r.E OF MYSO~E
v.
S. S. :111AKAPUR
·(B. P. SINHA, . c. J.,
P. B. 'GA.JENDRAGADKAR;
K. N. WANCHOO, N. RAJAGOPALA AYYANGAR
·
and T. L.VENKATARAllfA AIYAR, JJ.)
·
Governmenl Bervanl-'Enrruiry-Evidenc.s of witnesses in
preliminary investigation brought on
record~Witnesses tenc:lered
·.for croBS-examination-Prindple of natural justice if 1atisfieaB;nnbay Police Manual, s. 545(8).
. . _
.
.
After an enquiry held under s. 545 of the Bombay Police
Manual the pay of the respondent was· reduced from.125/· to
Rs. 120/· per month. During the enquiry the witnesses who
had been examined at the preliminary investigation wer.: ·recalled and their previous statements were brought on record
and after putting few question to them they were tendered
'for cross·examination by the respondent and in fact •hat they
·were cross~examined in detail. The respondents appeal to the
Deputy Inspector General of Police was not only dismissed
but the officer in exercise of his powers in revision ordered
his dismissal., The respondent filed a writ petition in the
High Court of My;ore challenging the validity of the order of
dismissal on the ground inter alia that the enquiry by the
'Deputy Superintendent of Police was conducted in disregard
of the rules of natural justice. The High Court agreed with
the above view and the order of dismissal was set aside. The
High Court further held that s. 545(8) of the Bombay Police
Manual was bad as it contravened principles of natural
justice.
The Mysore Government came up in appeal by special
leave to the $upreme Court.
H ela; that the purpose of an txamination in the presence
of a party against whom an enquiry is made, is sufficiently
achieved, when a witness who has give·n a priof. statement --
is recalled, th'it statement is put to him, and ·_made known to
the opposite party, and the witness is tendered for cross exation by that party:
Held, also, that tribunals exercising quasi-judicial func.;
, dons arc not courts and that therefore they are not bound to
f,ollow ~he procedure prr•cril:rd for trial of actions in cGμrts
•
'
.
• • •
1
'1962
May3.
. '
11/U
SU.1 oJ M,sor1
••
S. B. M alcapu•
dj)'ar J.
944 ·
SUPREME OOURT REPORTS (1963]
nor arc they bound by 1trict rules of evidence. They
can
unlike courts, obtain all informat~on material for the points
under the cnquiryfrom all sources, and through all channels,
without being fettered by rules and procedure, which govern
;
proceedings in court. The only obligation which the law
casts on them is that they should not act on any information
which they may receive unless they put it to the party agaimt
whom it is to be used and give him a fair opportunity to
explain it.
What is a fair opportunity depend on the facu
circumstances of each case but where such an opportunity hu
been given, the proceedings arc not open to attack on the
ground that the enquiry was not conducted in accordance
with •he procedure followed in courts.
Held further, that cl. 8 of s. 545 of the Bombay Police
Manual i; not bad as contravening the rules of the natural
.....
justice.
Uni-On of Jnaia v. T. R. Verma, (1958] S.C.R. 499, Btak oJ
Bombay v. GajananMalui<kv, (1955) J.L.R. Bom. 915, .Boanl of
Educalion v. Rice, fl911J A.C. 179, Lor.alGovern.....U Boartlv.
Arlitfge, [1915] A.C. 120, New Prakaah Tmnaporl ComJ><lny
Ltd. v. ll'eic Suwarna Tronaport Company Ltd., (1957] S.C.R.
98 and Phv./bari Tr.a Ealale
v.
It• Workmen,
[1960J-l
S.C.R. 32.
Crvn. APPELLATE TURISDICTION: Civil Appeal
No. 4(10 of 1960.
Appeal by spl Jial leave from the judgment
and order dated March 26, 19511, of the Mysore
High Court in Writ Petition No. 41 of 1958,
H. N. Sanyal, Additional Solicil,or General of
India, R. Gopalakrishnan and P. D. Menoo, for the
appellants.
K. R. Choudhri, for the respondent.
1962. May 3. The Judgment of the Court was
delivered by
VENK.ATARAMA AIYAR, J.-This is an appeal by
special leave ap:ainst the judgment of the High Court
of Mysore in a Wri

## Text

•
•
•
•
-- -- ---~- -·
· 2 s.c.R.
SUPREME OOURT REPORTS 943
STA'.r.E OF MYSO~E
v.
S. S. :111AKAPUR
·(B. P. SINHA, . c. J.,
P. B. 'GA.JENDRAGADKAR;
K. N. WANCHOO, N. RAJAGOPALA AYYANGAR
·
and T. L.VENKATARAllfA AIYAR, JJ.)
·
Governmenl Bervanl-'Enrruiry-Evidenc.s of witnesses in
preliminary investigation brought on
record~Witnesses tenc:lered
·.for croBS-examination-Prindple of natural justice if 1atisfieaB;nnbay Police Manual, s. 545(8).
. . _
.
.
After an enquiry held under s. 545 of the Bombay Police
Manual the pay of the respondent was· reduced from.125/· to
Rs. 120/· per month. During the enquiry the witnesses who
had been examined at the preliminary investigation wer.: ·recalled and their previous statements were brought on record
and after putting few question to them they were tendered
'for cross·examination by the respondent and in fact •hat they
·were cross~examined in detail. The respondents appeal to the
Deputy Inspector General of Police was not only dismissed
but the officer in exercise of his powers in revision ordered
his dismissal., The respondent filed a writ petition in the
High Court of My;ore challenging the validity of the order of
dismissal on the ground inter alia that the enquiry by the
'Deputy Superintendent of Police was conducted in disregard
of the rules of natural justice. The High Court agreed with
the above view and the order of dismissal was set aside. The
High Court further held that s. 545(8) of the Bombay Police
Manual was bad as it contravened principles of natural
justice.
The Mysore Government came up in appeal by special
leave to the $upreme Court.
H ela; that the purpose of an txamination in the presence
of a party against whom an enquiry is made, is sufficiently
achieved, when a witness who has give·n a priof. statement --
is recalled, th'it statement is put to him, and ·_made known to
the opposite party, and the witness is tendered for cross exation by that party:
Held, also, that tribunals exercising quasi-judicial func.;
, dons arc not courts and that therefore they are not bound to
f,ollow ~he procedure prr•cril:rd for trial of actions in cGμrts
•
'
.
• • •
1
'1962
May3.
. '
11/U
SU.1 oJ M,sor1
••
S. B. M alcapu•
dj)'ar J.
944 ·
SUPREME OOURT REPORTS (1963]
nor arc they bound by 1trict rules of evidence. They
can
unlike courts, obtain all informat~on material for the points
under the cnquiryfrom all sources, and through all channels,
without being fettered by rules and procedure, which govern
;
proceedings in court. The only obligation which the law
casts on them is that they should not act on any information
which they may receive unless they put it to the party agaimt
whom it is to be used and give him a fair opportunity to
explain it.
What is a fair opportunity depend on the facu
circumstances of each case but where such an opportunity hu
been given, the proceedings arc not open to attack on the
ground that the enquiry was not conducted in accordance
with •he procedure followed in courts.
Held further, that cl. 8 of s. 545 of the Bombay Police
Manual i; not bad as contravening the rules of the natural
.....
justice.
Uni-On of Jnaia v. T. R. Verma, (1958] S.C.R. 499, Btak oJ
Bombay v. GajananMalui<kv, (1955) J.L.R. Bom. 915, .Boanl of
Educalion v. Rice, fl911J A.C. 179, Lor.alGovern.....U Boartlv.
Arlitfge, [1915] A.C. 120, New Prakaah Tmnaporl ComJ><lny
Ltd. v. ll'eic Suwarna Tronaport Company Ltd., (1957] S.C.R.
98 and Phv./bari Tr.a Ealale
v.
It• Workmen,
[1960J-l
S.C.R. 32.
Crvn. APPELLATE TURISDICTION: Civil Appeal
No. 4(10 of 1960.
Appeal by spl Jial leave from the judgment
and order dated March 26, 19511, of the Mysore
High Court in Writ Petition No. 41 of 1958,
H. N. Sanyal, Additional Solicil,or General of
India, R. Gopalakrishnan and P. D. Menoo, for the
appellants.
K. R. Choudhri, for the respondent.
1962. May 3. The Judgment of the Court was
delivered by
VENK.ATARAMA AIYAR, J.-This is an appeal by
special leave ap:ainst the judgment of the High Court
of Mysore in a Writ Petition filed by respondent
challenging the validity of an
order of diemiBBa)
diite<l July 5, 1966 made by the Deputy Inepeotor
•
,
2 S.O.R.
SUPREME OOUR'l' REPORTS
945
General of Police, Belgaum. The respondent' entered
service in the Police Department as a constable in
the District of Bharwar in 1940 and was at the
material dates a sub-inspector of Police. On a complaint preferred by one Machwe of Kurdiwadi. against him, Mr. Majumdar, Inspector, C. I. D. made
a. preliminary investigation, examined a number
of witnel!lles and recorded their statements, and
submitted his report recommending further action.
On that the Deputy . Superintendent of Police;
Beige.um, started proceedings against the respondent, framed six charges against him, and called for
his explanation.
The respondent denied the charges and then a. regular inquiry was held on November 4, 1954. Clause (8) of s. 545 of the Bombay
Police Manual which lays down the pro@edure to be
followed in such inquiries is a.s follows:-
"The officer conducting the inquiry should
then recall a.II neoess&ry witnesses in support
ef the ckarge and, in the default&r's presence,
read out anystatements they may have made
in the preliminary inquiry and record,. if necessary, any further statements they may have
to make.
He should then give the defaulter
an opportunity of cross-examining each wit-
. ness after his statement in support of the
charge is completed, any such cross-examination being recorded bel_ow the ·statement of
the witness concerned.
In accordance with this provision the Deputy
Superintendent recalled the witnesses who ·had been
examined by Mr. Ma.jnmdar during the preliminary
.investigation, brought on record the previous statements given by them, . and aftP-r putting a few
questions to them tendered them for cross-examination by the rtspondent. As a fa ct all the witnesses were crolllHlxa.mined by the respondent in great
detail. ',l'he Deputy .l!ul erinttndent held that all
1962
State of Mysete
••
S. S. Makapur
AiyarJ.
SC.te •/ M71ore
v.
S.S. Jlalapur
946
SUPREME OOURT REPORTS [1963)
the charges framed against the respondent had been
proved and he accordingly i88ued on December 14,
,
1954, a. notice to him to show cause why he should
not be punished by his
pay being reduced from
~
P..s. 125/ · to Rs. 120/ · per month for two yea.rs.
To this again the respondent submitted his explanation and thereafter the Depaty Superintendent
passed on January 5, 1955, an order reducing his
pay as aforesaid.
The respondent would have been well advised to ha. ve left the matter there. But he chose
to prefer an appeal against the order. The Deputy
Inspector General of Police, Helga.um, before whom
._
it ca.me, not only dismissed it but issul'ld, in exercise of his powers in revision, a notice to the
respondent to show cause why he should uot be
removed from service and after ta.king his explanation ordered his dismissal on July 5, 1956.
The
respondent filed a revision against this order to the
Government of Bombay and under
the States
Reorganisation Act, 1956, that came before the '..
Government of Mysore and was dismissed on
August 31, 1957.
The respondent thereupon filed
in the High Uourt of Mysore, the Writ Petition, out
of which the present a.ppea.I ariees questioning the
validity of the 01 der of dismissal dated J aly 5,
1956, on a. number of grounds of which we a.re
concerned in this appeal with only one, namely,
that the inquiry by the Deputy Saperintendent of
•
Polic11 was conducted in disregard of the rules of ,
natural justice and in coneequence the ordl'lr made
was bad.
The learned judges of the High Court
agreed with this contention.
They held, on the
authority of certain observations made by this
Court in the Union of India v. T.R. Verma (1) and
by the Bombay High Court in the Stat,e of Bombay
v. Gajanan Mahade1• (')that principles of natural
•
justice required that the evidenoe of witnelllle8 in
11} (!95111 5.C.R. f99.
al (1954) J.L.R. Bom. 915.
2 s.c.R.
SUPREME COURT REPORTS
947
support of the charges should be recorded in the
presence of the enquiring officer and of the person
a~tJ,inst whom it is sought to be used. In this view
they held further that s. 545(8) of the Bombay
Police Manual was bad as it· contravene.d principles
of natural justice. They accordingly held that the
enquiry was vitiated by the admission in evidence
of. the statements made by the witnesses b• fore
Mr. Majumdar without an independent extJ,mination
of them before the Deputy Superintendent of
Police. In the result the o,rder of dismissal was
set aside.
It is the correctness of this judgment
that is now under challenge before us.
The sole point for determination
in this
appeal therefore is whether the procedure adopted
by the Deputy Superintendent of Police in admitting the statements of witnesses examined before
Mr. Majumdar in evidence is opposed to the rules
of natural justice.
The qu ~stion is one 'Of importance, because as appears from the oases which
have come before us the procedure followed by the
Deputy Superintendent of Police in this ca!le is the
one followed by many tribunals exercising quasijudicial powers. For a correct appreciation of the
position, it is necessary to repeat what has often
said that tribunals exercising quasi-judicial func·
tions are not courts and that therefore they are
not bound to follow the procedure prescribed for
trial of actions in Courts nor are they bound by
strict rules of evidence. They can, unlike Courts,
obtain all
information
material
for
the
points
under enquiry from all sources, and
through all channels, without being
fettered
by
rules and
procedur!l,
which.
govern
proceedings in Court.
The only obligation which
the law casts on them is that they should not act
on any information which they may receive unless
they put it to the party against whom it is to be
ueed and give him a fair opportunity to explain it.
1981
State of My.Sore
••
S. s. lltakapur
AiJmJ,
IHI
Star.of MJ,_
v.
s.s.M~
A;,r>r J.
948
SUPREME OOURT REPORTS (1963]
What is a fair opportunity must depend on the
facts and circumstances of each case but where
snob an opportunity had been given, the proceed·
ings al'o not open to attack on the ground that the
enquiry wM not conducted in a.ocordance
with
the prooedure followed in courts.
The question as to the content of the rules
natural justice has been subject of numerous
decisions in England and in this country. Dealing
with this question Lord Loreburn, L. C., observed,
in Board of Education v. Rice (') as foll owe :
"In such Olll!e& the Board of Education
will have to ascertain the law as also to
ascertain the faots.
I need not add that in
doing either they must act in good faith and
fairly listen to both sides, for that is a duty
lying upon every 0ne who decides anything.
But I do not think they are bound t<> treat
such a question as though it were a trial.
They have no power to administer an oath,
and need not examine witne5ses. They can
obtain information in any way they think
beat, always giving a fair opportunity
to
those who are parties in the controversy for
correcting or contradicting
any relevant
statement prejudicial to their view.
This statement of the law was adopted again by
the House of Lords in Local Government Board
v. Arlidge (2).
This question has also been coneidered by
this Court in several decisions. One of the ear Ii est
of them is the decision in New Prakash. Transport
C(}1Tlpany. Ltd. v. New Suwarna Tra11-.9port Company
Ltd (').
There the facts were that a
Tribunal
conetituted under the Motor Vehicles Act
had
(I) (1911) A.C. !79, 182.
(2) \I ·IS) I ;...c. 120.
(S) ( 19S7) S.C..lll. lie.
,
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2 S.C.R.
SUPREME OOURT REPORTS
949
refused to grant a permit to a company to run a
bus on a certain route. __ Then the company filed
a writ application in the High Court of Nagpur,
attacking the order refusing the permit on the
ground, int.er alia, tha~ the Tribunal had acted on
a police report which was produced at the time of
the hearing without giving the petitioner sufficient
opportunity to nie<oit it, and had thereby violated
the rules of natural justice. -Agreeing with this
contention the learned Judges_ of the High Court
had set aside the order. In reversing this order,
this Court held that the police report was information on which the Tribunal was entitled to act,
and as it was read at the enquiry, in the presence
of the parties, and they had been heard on it,
there had been sufficient compliance with the rules
of natural justice.
We may next refer to the decision of this
Court in the Unit>n of India v. T.R. Verma (1).
That arose -out of a Writ Petition filed by a
Government servant in the High Court of Punjab,
calling in question an order of dismissal passed
against ilim, on the ground that the enquiry which
resuHed in the order had not been conducted in -
. accordance with the rules of natural justice. The
facts were that when the petitioner, and his witnesses appeared for giving evidence, the enquiring
officer took their examination on hand . himself,
put them questions, and after he had finished, asked
them to make their statements. The complaint of
the petitioner was that he and his witnesses should
have been allowed to give their own evidence, and
than cross-examined, and that the departure from
the normal procedure in taking evidence, was a
viola_tion of the rules of natural justice. In rejecting this contention this Court observed as follows :
"Stating it broa'dly and without intending it to be exhaustive, it-ma:y be obse"ed
(1) (111118) S.C,R. 5
19811
Seate of M,iore
v.
S. S, Malapur
Jf6f
Stale of MysDrt.
••
s. s . .:J"'atu'
Ai.ar J,
950
SUPREME COURT REPORTS [1963)
that rules of natural justice require that a
party should have the opportunity of adducing all relevant evidence on which
he
relies, that the evidence of the opponent
~hould be taken in his presence, and that he
should be given the opportunity of orossexa.mining the witnesses examined by that
party, and that no materials should be relied
on against him without his being given an
opportunity of explaining them. If
these
rules are sati~fied, the enquiry is not open to
attack on the ground that the procedure
laid down in the Evidence Act for taking
evidence was not strictly followed.
Vide the
recent decision of this Court in New Prakash
Transport Co. v. New Suwarna Transport
Co., wher.e this question is discussed."
It is on the observation that "the evidence of the
opponent should be taken in his presence'' that thl'
decision of the learned Judges that thll evidence of
witnesses should bJ recorded in the presence of
the person against whom it is to be used is based.
Read literally the passage quoted above is eusceptible of the construction which the learned Judges
have put on it, but when read in
the context
of the facts stated above, it will be clPar that that
is not its true import.
No question arose there
as to the propriety admitting in evidence the statement of a witness recorded behind the back of a
party. '1 he entire oral evidence in that case was reco.
rded before the enquiring officer, and in the presence
of the petitioner. ::-o there was no question of a cont·.·ast between evidence recorded behind a party
and admitted in evidence against him, and evidencP
recorder! in his presence. What was actually nnder
consideration was the procedure to be followed by
quasi-judicial bodies in holding enquiries, and the
decision was that they were not hr>llnd to adopt
the procedure followed in Courts, aud that it was
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•
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2 S.C.R.
SUPREME COURT REPORTS
951
only necessary that rules of natural justice should
be observed. Discussing. next what those rules
required, it was observed that the person against
whom a charge is made should know th<' evidence
which is given. against him, so that he might be in
a position to give his explanation.
When the
e-v;idence is oral, normally the examina.tion of the
. witness will in its entirety, take place before the
party charged, who will have full opportunity of
cross-examining him The position is the same when
a witne~ is called, the statement. given previously
by him behind tb.e back of the party is put to him,
and admitted in evidence, a copy thereof is given
to tb.e party, and he is given an opportunity to
cross-examine him. To require in that case that the
OQntents of the previous statement should be repeated
by the witne~s word. by word, and sentence'by sentence, is to insist on bare technicalities, and rules of
natural justice are matters not of fro'f!l bu,t of subs·
tanQe. In our opinion they are .. sofficiently complied
with when previous statements gi,ven by wi~nesses
are read over to them, marked on their admission,
copies ther,eof given to the p11rson charged, and he
is given an opportunity'to cross-examine them.
This question came up for con.sideration . by
this Court more recently in Plwlbari Ten, Estate v. ·
!ta W o/kmen( 1 ). Thtlre t,he fr,qta w~re that one of
tP,e. workmen, B. N. Das Wl!-8
disuUs!96d. by the
~gement as the re~lt of an eI\quiry into ii.
oha.rBe of theft. The lndu,stri.41 Tribunal 1!6t aside
tbiil orrler on the. groJμld t.b,at ther.e had be.en. no
proper enquiry. What had hapJ>E!ne<J was that the
l!lA"agement fi!r.d first ma.de an invi!Btigation, ai;ip
taken st.atement,s of witnel!f4eB, and at the r.egi1lar
en.quity these sj;atetnents were brought on record
!mt .they .were not p~t to the w,ilellSBeB,_ who w.ere.
prefle!I)., .nor Ji.ad copies there.Of. . Jl giyen. to '1lil
worklllen. The guestio~ was wliet er the enguiry
(I) (1960). I &.C.R. !12.
Stal4 of 111,,.,,
v.
B. 8 • .A!cQi<J#ur
Av•" .T.
lP61
Stale •f M,MW,
..
S. S. M•/uJ/>u•
952
SUPREME COURT REPORTS [1963)
We.JI in acoord&noe with rules of natural justice. In
answering it in the negative, Wancboo, J, speaking
for the Court, observed that the admission in
evidence of the prior statements under the circu1119t:mces stated above, wa.s not in oonsona.noe with
the principles of natural justice laid down in the
Union of India v. ']'. R. Verma(').
This decision iii
clearly of no a.ssistance to the respondent.
Relia.noe was also placed on the following
observations by Chagla., C. J., in the State of &mhay
v. Gajanan MahadetJ (') •
"Even assuming that a. statement of such
a. witnesa is furnished to the Government
eerve.nt, it is a sound rule that courts of law
follow and which even domestic tribunals
should follow that a.JI evidence must be given
in the presence of an accused person and in
the preaenoe of a. person against whom action
is proposed to be taken. It is one thing to
make a statement behind the back of person;
it is entirely a. different thing to make a.
statement
in front of the Court or
a.
domestic tribunal a.Iid in the presence of a.
person a.gs.inst whom you · a.re going to make
serious oha.rges."
But in our opinion, the purpose of an examination
in the presence of a. party against whom a.n enquiry
is ma.de, is sufficiently achieved, when·a witneea
who ba.s given a. prior statement is recalled, that
statement is put to him, and made known to the
opposite party, and the witnesa is tendered for
crose-exa.mina.tion by that party. In this view we
must bold that the order dated July 5, 1956, is not
lie.hie to be set a.side on the ground that the procedure
followed a.t the inquiry by the Deputy Superintendent of police w&11 in violation of the rules of natural
(I) (1958) S.C.R. 49l1.
(2) (1954) 1.1..11.. Bom. 915.
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2 s.c.R.
SUPREME COURT REPORTS
953
justice. It is hardly necessary to add that cl. 8 of
s. 545 of the Bombay Police Manual ca.n not be held
to be b1.d a.s contravening the rules of natural
justice.
'fhis finding however does not dispose of the
entire matter. It is the contention of the respondent that the Deputy Inspector Genera.I of police
was not entitled in revision to enhance the punishment and this question has not been decided by the
learned Judges. It is therefore necessary to remand
this case for hearing on this a.nd a.11 other issues
whioh might a.rise for decision. We accordingly
set a.side the order in appeal and remand the oa.se
for hearing on the other points in· this oase. Coats
of this appeal will a.bide the result of the hearing
in the Court below.
Gase remanded •
M/S. AMARCHAND LALITKUMAR
.v.
SHREE AMBICA JUTE MILLS LTD.
(S. K. DAS, M. HmA.YA.TULLA.B a.nd J. c. SRA.H, JJ.)
..4.rbitration-Reoooation-Pt1Wtr
of
Ouurt-Periotlic
fluctWJtion of price, if an emergency~:A.rbitralion Act, 1940 (10
of 1940), 88. 6,34-Worlcing Manval ofllie lilaetlndia Jute and
Heenan lil:rcliange, Oh. IX. paMB. 7(c), 11.
The appellants as sellers of raw jute entered into
forward contracts with the respondent jute mills to sell such
jute to thCDI. The contracts.being transferable specific delivery
contracts, were entered into . in the standard printed forms
of'the ~t India Jute & Hessian Exchange Ltd., which was
an association rCcognised under the Forward Contracts
(Regulation) Act, 1912, and thus were subject to the rules
and bye-Jaws made by the &change which provided for
arbitration of .dispu!CI by the tribllll&I of· Arbitration of the
198B
Slate of My•or1
v
8, S. Matap.,
1981
Ma, a.