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1995 Supreme(Kar) 346

Karnataka High Court
C.C.Subbaraya Setty - Appellant
Versus
C.V.Ananthanarayana Setty - Respondent
Decided On : 08-03-95
M.F.A. : 1551 of 1986

Advocates:
G.Vedavyasachar, S.V.Subbanna, V.TARKARAM

The main legal point established in the judgment is that new grounds for challenging an award cannot be raised after the expiry of the limitation period, and the acceptance of remuneration by arbitrators from one party does not constitute misconduct without evidence of unfairness or lack of mutual agreement.

Headnote:

Arbitration - Validity of Award - Section 14 (2) of the Arbitration Act - Para 3 of Schedule I of the Act - Misconduct of Arbitrators - Limitation for Filing Objections

Fact of the Case:

The appeal was filed against the rejection of an application under Section 30 of the Arbitration Act and the passing of a decree in accordance with the award. The appellant contested the validity of the arbitration proceedings and the award, alleging forgery and misconduct by the arbitrators.

Finding of the Court:

The court found that the arbitration proceedings were valid, the appellant's objections were unfounded, and the application for setting aside the award was not barred by limitation.

Issues: Validity of arbitration proceedings, timeliness of the award, and permissibility of raising new grounds for setting aside the award.

Ratio Decidendi: The court held that the application for setting aside the award was filed within the prescribed time limit, and new grounds for challenging the award cannot be raised after the expiry of the limitation period. The court also determined that the acceptance of remuneration by the arbitrators from one party did not amount to misconduct in the absence of evidence of unfairness or lack of mutual agreement.

Final Decision: The appeal was dismissed, and costs were awarded to the respondents.

S. VENKATARAMAN, J.

( 1 ) THIS appeal is filed by respondent-3 in Arbitration Case No. 1/73 on the file of the Civil Judge, Hassan, against his order rejecting his application under Section 30 of the Arbitration Act and passing a decree in accordance with the award.

( 2 ) THE appellant and respondent-5 are the sons of fourth respondent. First respondent is the son-in-law of fourth respondent and brother-in-law of the appellant and respondent-5. Second respondent is the brother-in- law of fourth respondent. Third respondent is a cousin of first respondent.

( 3 ) RESPONDENTS 1 to 3 filed the petition before the lower court under Section 14 (2) of the Arbitration Act (hereinafter referred to as 'the Act') stating that the appellant and respondent-4 and 5 had referred their dispute regarding partition of their family properties to them by means of a deed of submission dated 23-1-1972, that on 24-1-1972 they met the appellant and respondents-4 and 5 and collected particulars regarding their properties and liabilities, that on 23-5-1972 the fourth respondent wrote a letter to them requesting them to decide their disputes as per the deed of submission and that on 21-9-1972 they have passed an award on a stamp paper and got the same registered. They also stated that they have given formal information about the passing of the award to all the parties by registered post on 25-10-1972 and that as requested by the parties they are filing their award in court for passing of a decree.

( 4 ) THE court issued notices on the above petitioners. Respondents-4 and 5 had no objection to the passing of the award. But the appellant filed an application praying that the award may be set aside. In his objections he denied that there was any reference for arbitration with regard to the dispute regarding partition or that the arbitrators inquired him in that regard. He alleged that his signatures were taken on some papers without disclosing their contents and that the respondents-1 to 3, in collusion with respondents-4 and 5, had forged his signatures and got up some documents. He asserted that all the properties of the family had not been included in the award and that the partition effected by the arbitrators is highly inequitable. He also contended that the award had not been filed in Court in time. He further alleged that on account of the conduct of the arbitrators he has been put to great loss and injustice and that as such the award should be set aside.

( 5 ) DURING the course of the inquiry the first respondent, fourth respondent and the appellant were examined. On the material on record the learned Civil Judge has held that the case of the appellant that his signature was taken on some documents without disclosing its contents or that his signatures have been forged had not been made out. He has held that the deed of submission has come into existence as stated by the arbitrators and that all the legal requirements for initiation of arbitration proceedings and factual existence of differences between the appellant and respondents-4 and 5 had been established. He has also held that that the arbitration proceedings were carried on as stated by the arbitrators and that the appellant had not proved any misconduct on the part of the arbitrators which would render the proceedings null and void. He has also negatived the contention raised by the respondents that the application filed by the appellant for setting aside of the award was barred by limitation. On these findings the learned Civil Judge has rejected the appellant's application and as a consequence he has passed a decree in accordance with the terms of the award.

( 6 ) IN this appeal Sri V. Tarakaram, learned senior advocate, appearing for the appellant, did not seek to question the findings of the lower court that there was a valid reference made by the appellant and respondents-4 and 5 with regard to their dispute pertaining to the partition of the family properties or that the arbitrators


























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