Madan Mohan Rajgarhia vs Mahendra R. Shah & Bros. And Anr

The Supreme Court upheld the application of Section 34 of the Indian Arbitration Act, 1940, affirming that the arbitration clause in the stock exchange bills is applicable to non-members, including the appellant. The Court clarified that the definition of 'non-member' is broad enough to encompass individuals like the appellant, who are not explicitly listed as remisier or authorized clerks but are involved in transactions with members. Consequently, the High Court's order to stay the proceedings of the suit was upheld, reinforcing the enforceability of arbitration agreements in commercial disputes.