1989 Supreme(AP) 523
Andhra Pradesh High Court
Judges : RADHA KRISHNA RAO
Walcbandnagar Industries Ltd., Bombay - Appellant
Versus
Hemadri Cements Ltd., Hyderabad - Respondent
Decided On : 11-24-89
The provisions of Order 9 Rule 13 C.P.C. are applicable to proceedings under the Arbitration Act, 1940.
Headnote:
ARBITRATION - SETTING ASIDE EX PARTE DECREE - APPLICATION TO SET ASIDE AWARD - GROUNDS - LIMITATION - COURT'S POWER TO SET ASIDE EX PARTE DECREE - CODE OF CIVIL PROCEDURE, 1908 - ORDER 9 RULE 13 - ARBITRATION ACT, 1940 - SECTIONS 14(2), 15, 16, 17, 19, 30, 32, 41 - LIMITATION ACT, 1963 - ARTICLE 119(B).
Fact of the Case:
Plaintiff filed a suit to make an award a rule of the court. Defendant filed an objection and an O.P. to set aside the award. The court dismissed the O.P. for default and passed a decree in terms of the award. Defendant filed an application under Order 9 Rule 13 C.P.C. to set aside the ex parte decree.
Finding of the Court:
The court held that the defendant had shown sufficient cause for his non-appearance and that the court below was justified in setting aside the ex parte decree. The court also held that the provisions of Order 9 Rule 13 C.P.C. are applicable to proceedings under the Arbitration Act, 1940.
Issues: Whether the court below was justified in setting aside the ex parte decree.
Ratio Decidendi: The court held that the provisions of Order 9 Rule 13 C.P.C. are applicable to proceedings under the Arbitration Act, 1940. The court also held that the defendant had shown sufficient cause for his non-appearance and that the court below was justified in setting aside the ex parte decree.
Final Decision: The court dismissed the revision petition.
( 2 ) THE plaintiff M/s. Walchand Nagar Industries Ltd. , filed the suit to issue notices to defendants 2 and 3 i. e. , the Joint Arbitrators to file their unanimous award made, signed, pronounced and published by them on 2-2-1987 at Hyderabad with all documents, evidence and minutes of the meeting, pronounce the judgment in terms of the award and inter alia pass the decree as per the provisions of Section 17 of the Arbitration Act granting the decree for the sum of Rs. 20, 79, 954. 28 as awarded by the defendants 2 and 3 in favour of the plaintiffs and against defendant No. 1 and also award interest at 18% on the sum of Rs. 17, 74, 858. 00 from 30-6-1986 till the payment of the said amount by the 1st defendant Company to the plaintiff Company. The first defendant filed the written statement and objections for passing the award as prayed for by the plaintiffs. The 1st defendants also gave reasons to the passing of the decree in paragraphs 6 and 7 of the written statement. The 1st defendant filed O. P. No. 41 of 1988 for setting aside the award made. On 7-11-1988 no representation was made on behalf of the 1st defendant who is petitioner in O. P. 41/88. The first defendant was, therefore, set ex parte and the O. P. was dismissed for default. After recording the evidence of P. W-1, judgment was pronounced by the Court on 8-11-1988. The learned Judge decreed the suit allowing the suit claim after approving the award made by the Joint Arbitrators as Rule of the Court.
( 3 ) I. A. NO. 453 of 1988 out of which this revision arises was filed under order 9 Rule 13 C. P. C. by the first defendant to restore the O. P. to file and set aside the ex parte decree in O. S. No. 2 of 1988. The plaintiff filed a counter and the 1st defendant also filed a reply affidavit in the LA. After considering the entire case, the learned Judge found that a case has been made out by the defendant and hence allowed the petition and restored the suit and the O. P- to file. It is against this order, the plaintiff filed the present revision petition.
( 4 ) BOTH the parties submitted written arguments before the lower court. The lower Court on the basis of the material submitted by the parties and considering the contentions raised by them found that the reasons that have been mentioned by the defendant for not being present on 7-11-1988 are sound and acceptable and came to the conclusion that the ex parte order is liable to be set aside.
( 5 ) THE admitted facts in this case are : The award was passed by two joint Arbitrators and the plaintiff filed an application before the lower Court to make the Award a Rule of the Court. The defendant filed O. P. raising objections that the Award as passed cannot be made a rule of the Court. When the Award is filed, the Court has to give a notice to the parties of the filing of the Award under Section 14 (2) of the Arbitration Act, (hereinafter referred to as the Act ). Under Section 15 the Court is given power to modify or correct the award and under Section 16 the Court can remit the award for reconsideration. Section 17 provides for judgment in terms of the awards, which is relevant for our purpose, and it reads as follows :"where the Court sees no cause to remit the award or any of the matters referred to arbitration for reconsideration or to set aside the award, the Court shall, after the time for making an application to set aside the award has expired, or such application having been made, after refusing it. proceed to pronounce judgment according to the award, and upon the judgment so pronounced a decree shall follow and no appeal shall lie from such decree except on the ground that it is in excess of, or not