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2002 Supreme(Pat) 512

2002 (3) BBCJ 104
PATNA HIGH COURT
S.N. PATHAK, J.
Satya Narain Prasad Gupta & Anr. – Appellants
Vs.
Sudhir Kumar Singh - Respondents
Miscellaneous Appeal No. 186 of 1998
Decided on : 18.4.2002

Advocates appeared:
For the Appellant : M/s Ram Chandra Jha, Vibhakar Misra.

Headnote:Arbitration Act, 1940-Section 4 and 10-Parties to agreement of reference are free to determine the member of arbitrators but this number shall not be an even number-Parties who know that any provision of the act has been violated and still proceed with the arbitration only in that case the acquiescence of the parties shall amount to their waiver of right to challenge the illegality attaching to the arbitration agreement-Absence of signatures of three panches would indicate that they were absent-Their absence would invalidate the award-Agreement also appeared to be doubtful hence panchayati and award would also be invalid. (Paras 5 and 6)

       Code of Civil Procedure 1908-Order V Rule 16-ln case of complete denial of service of award, specific denial that he was not served with copy not necessary-There is a presumption attaching to the postal dispatch of any letter or any document, but this presumption is always rebuttable and when the appellant denied this service, the respondent had to prove the same by reliable evidence. (Para 5)

       

JUDGMENT

S.N. PATHAK, J.:- This miscellaneous appeal is directed against the judgment dated 30.4.98 passed by Sub Judge Saharsa, in Misc. case No. 17/97 dismissing the claim of the plaintiff-appellants seeking amendment of the award dated 26.2.97 who was put to execution in case no. 2/97.

2. Certain facts will be apt to be stated, precisely in order to bring the book of contention between the parties into Sharp focus. The defendant-respondent, Sudhir Kumar Singh, was a tenant under Satya Narain Prasad Gupta, the plaintiff-appeal Dulari Devi in a house situated within the jurisdiction of the local Municipality having holding no. 244 over old Khata no. 190, on keshra no. 4203, new khata no. 392, now khesra no. 731 (kha and ga). Sudhir Kumar Singh was running a medical shop named as Popular Medical Hall in this house. There was an alleged agreement between Satya Narain Prasad Gupta and Sudhir Kumar Singh to sell the aforesaid house for Rs. 2 lakhs. Satya Narain Prasad Gupta has received Rs. 1,40,500/-. Rest of the consideration money was to be paid by Sudhir Kumar Singh and then it was agreed that on payment of this amount both the husband and wife shall execute a deed of registration over the said house. Thereafter, when Satya Narain Prasad Gupta and his wife failed to execute the deed as per the agreement, the panches intervened and rendered an award. The Staya Narain Prasad Gupta filed the suit in the Court below to set aside the award on legal and factual grounds when this prayer of Satya Narain Prasad Gupta was rejected, they filed this appeal before this Court.

3. The award rendered by the so called panches had been challenged on various grounds. Firstly, the ground on which this award was assailed was that the agreement entered into between Satya Narain Prasad Gupta and Sudhir Kumar Singh was not joined by his wife, Ram Dulari Devi. It was next assailed on the ground that the award does not refer to odd n umber of Panches as enjoined by Section 10 of the Arbitration Act, 1996. Moreover, initially the concerned award referred to six panches, but thereafter it referees to 16 panches, our of which only 13 panches signed on the award. Signature of Satya Narain Prasad Gupta was obtained on page 4 of the award under coercion and without his voluntary participation in the alleged proceeding. The panches did not appoint an umpire (President). On the aforesaid legal grounds, the award, in question, was challenged. The lower court rejected all these objections and held that the objections were also time barred in the court below, and, accordingly, dismissed the misc. case, against which this appeal has been preferred.

4. In the first place, I am to see whether the arbitration agreement itself was valid without the same being joined by the wife of Satya Narain Prasad Gupta. Recitals of the award itself show that both Satya Narain Prasad Gupta and his wife Ram Dulari Devi had agreed to sell the house, in question, under the tenancy of Sudhir Kumar Singh. This recital finds mention in paragraph 2 of the reference (Ext. B). Admittedly, the house, in question, stands in the name of Ram Dulari Devi. It was the contention of the respondents that this house was purchased by Satya Narain Prasad Gupta in the name of his wife and so, it was his property. So, he was required to enter into the agreement of reference. But the recital which I have referred to above indicates that both the husband and wife had to execute the sale deed. Moreover, admittedly when the house, in question, stood in the name of wife of Satya Narain Prasad Gupta, the probability of the alleged agreement for sale of the house must be that the sale deed would be executed both by Stay a Narain Prasad Gupta and his wife. In such a circumstance, non-joining of wife of Satya Narain Prasad Gupta in the agreement of reference to arbitration, of course, rendered it invalid and moreover this agreement of reference appeared to be doubtful. This agreement (Ext.B) refers to appointment o






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