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2003 Supreme(SC) 16

2003(6) Supreme 871
SUPREME COURT OF INDIA
(From Calcutta High Court)
V.N. Khare, CJI., S.B. Sinha, J.
Sohan Lal Gupta (Dead) through LRs & Ors. -Appellants
versus
Smt. Asha Devi Gupta & Ors. -Respondents
Civil Appeal No. 2809 of 1979
With
C.A. No. 2810/79 and C.P. (C) No. 484 of 1998
Decided on 1-9-2003
Counsel for the Parties :
For the Appearing Parties : Bhaskar P. Gupta, J.P. Goyal , Sr. Advs., R.K. Maheshwari, Rishi Maheshwari, Ms. Shally Bhasin Maheshwari, Raj Kumar Kaushik, M/s J.B.D. & Co., Advocates (NP), Parijat Sinha, Rameshwar Prasad Goyal, K.K. Gupta, Varinder Kumar Sharma, Bijan Kumar Ghosh, B.P. Subba, B.P. Nirbhay, Shrish Kumar Mishra, Adv. (NP), Gourab K. Banerji, Kaushik Mandal, Ms. Sangeeta Mandal, Kapil Choudhary, Ms. Jayasree Singh, Ms. Swati Sinha, Ms. Sandhya Goswami, Adv. (NP), Tarun Johri, Arvind Kumar, Ms. Jaya, C.S. Ashri, P.D. Sharma, Vijay Kumar Sharma, in person for Respondent No. 11, Senthil Jagadeesan, V. Ramasubramanian J.P. Pandey, D.N. Mishra, Uma Datta, Adv. (NP), Chinnasamy, Adv. (NP), Arun Aggarwal, Pallav Sarma, Rao Ranjit, Advocate (NP)/Advocates.

IMPORTANT POINT
In an arbitration proceeding, the parties would be entitled to a reasonable opportunity of putting their case but the arbitrator has a right of managing the proceedings.

Headnote:

Arbitration Act -Procedure of arbitration - Notice by Arbitrator-The learned Single Judge set aside the award, on the ground of procedural irregularity holding that no reasonable notice was given as per agreement-- The arbitrator, , proceeded only on the documentary evidences- No party presented oral evidence- - Even otherwise, a party has no absolute right to insist on his convenience being consulted in every respect- The matter was within the discretion of the arbitrator and the Court will srelinquished his right by filing an application stating that he would withdraw his objection- Therefore principles of Naturals Justice not attracted- The Award made Rule of the Court- Appeal allowed. [Paras 19 to 25 and 35]

JUDGMENT

S.B. Sinha, J.-What constitutes a reasonable notice by an arbitrator is the question involved in these appeals which arise out of a judgment and decree dated 1-3-1970 passed by a Division Bench of the Calcutta High Court affirming an order passed by a learned Single Judge setting aside an arbitration award.

2. The basic fact of the matter is not in dispute. Two groups of persons - One Guptas and another Sharmas - held several properties including three firms, six limited companies, one trust and other movable and immovable assets. Both the groups had 50 shares each. The family members of the Guptas and Sharmas Groups were interested in many or in some of the business and the firms. The family tree of the Gupta Group is as under:

 

GENEOLOGICAL TABLE OF GUPTA GROUP

I II III IV

Dulichand (Deceased) Sita Ram (Died on 1.12.75) Balaprasad Shrilal (deceased) -Basanti -Anari _________________ _______________________ ___________ ________________

 

(1) (2) (3) (1) (2) (3)

l l l l l

Motilal Brijmohan Sohanlal Kailash Vinod Arun -Kapuri -Padma Gayatri  -Pushpa -Manjula

l

Ashok

l l l l l

Rambabu Hari Pd. Prem Om Prakash Kamal -Radha -Shankuntala -Asha

| l l

Niranjan Banwari Ghanshyam

-Kamla -Vidya -Renu

 

3. Disputes and differences having arisen between the two groups as also between the family members of the same group, an agreement was entered into on or about 10-4-1975 for referring some of the disputes to the arbitration of one Mr. B.J. Bhide. The material parts of said agreement are as under:

"1. The parties hereto hereby agree that all disputes differences between the parties or their representatives concerning or relating to or touching the said several firms, companies, assets moveable or immoveable or any act done by the parties or in regard to their respective rights, duties and obligations of the parties hereto or their enforcement which exist between the parties and also of other disputes and differences that may hereafter arise between the parties and be laid by the parties or either of them before he shall make his award are hereby referred to the Award and final determination of Shri P.J. Bhide alias Purshottam Jagannath Bide, son of Shri J. V. Bhide, residing at No. P-390 Keytolla Lane, Calcutta-29.

2. That the said Arbitrator shall have powers to have the accounts of the said firms and/or companies and/or assets checked, inspected and/or audited by the Chartered accountant or by any other person or persons.

3. That the said Arbitrator shall have powers to formulate and lay down his own procedure for the conduct of arbitration proceedings according to law.

4. That the said Arbitrator shall have power to proceed ex parte in case the other party fails after reasonable notice to attend before him.

5. That the said Arbitrator shall have powers to ask for any paper, docu







































































































































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