HIGH COURT OF CALCUTTA
S. Datta
RAMNIBAS JHUNJHUNWALLA - Appellant
Versus
BENARASHI L. JHUNJHUNWALLA - Respondent
Award Case 241 Of 1962
Decided On : MARCH 16, 1966
ARBITRATION - ABATEMENT - ORDER 22 OF THE CIVIL PROCEDURE CODE - APPLICABILITY - AWARD - FILING - COURT'S JURISDICTION - INHERENT JURISDICTION - SECTION 6 OF THE ARBITRATION ACT AND RULE 7 OF THE 1ST SCHEDULE - INTERPRETATION.
Fact of the Case:
An application was filed by one Probhu Dayal Jhunjhunwalla, one of the heirs and legal representatives of the original petitioner Ramnibas Jhunjhunwalla, since deceased, for inter alia recording the death of Ramnibas Jhunjhunwalla and Benarasilal Jhunjhunwalla, the original respondent setting aside the abatement, if any, of the judgment upon award matter and recording the names of the heirs and legal representatives of the deceased Benarasilal Jhunjhunwalla and Ramnibas Agarwalla for necessary and incidental orders.
Finding of the Court:
The court held that Order 22 of the Civil Procedure Code does not apply to arbitration proceedings, and even if it did, Rule 6 would have been applicable in this case, as the hearing was closed and an award had been made and filed in Court. Therefore, the court upheld the contention advanced on behalf of the petitioner and allowed the heirs to be brought on record in its inherent jurisdiction, more particularly, having regard to Section 6 of the Arbitration Act and Rule 7 of the 1st Schedule.
Issues: 1. Whether Order 22 of the Civil Procedure Code applies to arbitration proceedings? 2. Whether Rule 6 of Order 22 is applicable to an award which has already been filed in Court and where notices have already been issued to the parties?
Ratio Decidendi: 1. Order 22 of the Civil Procedure Code does not apply to arbitration proceedings because the nature of an arbitration proceeding is so different in some essential features from a suit that Order 22 cannot be applied without violence to the provisions of Order 22 itself and the provisions of the Arbitration Act. 2. Rule 6 of Order 22 is not applicable to an award which has already been filed in Court and where notices have already been issued to the parties because once the award is made, the duty of the arbitrator is to file the award which is in the nature of an administrative or ministerial act, and the arbitrator becomes functus officio.
Final Decision: The court allowed the application and directed that the heirs and legal representatives of the deceased parties be brought on record.
( 1 ) THIS is an application by one Probhu Dayal Jhunjhunwalla, one of the heirs and legal representatives of the original petitioner Ramnibas Jhunjhunwalla, since deceased, for inter alia recording the death of Ramnibas Jhunjhunwalla and Benarasilal Jhunjhunwalla, the original respondent setting aside the abatement, if any, of the judgment upon award matter and recording the names of the heirs and legal representatives of the deceased Benarasilal Jhunjhunwalla and Ramnibas Agarwalla for necessary and incidental orders.
( 2 ) IN or about March 1961, the arbitrators entered into the reference. On April 10, 1961 the award was made and signed by the arbitrators. On the 28th May 1963, the award was filed in Court. On or about July 6, 1962 an application was made by Ramnibas Jhunjhunwalla for inter alia taking the award off the file and alternatively setting it aside. On the 16th July, 1962 the judgment upon award matter appeared in the list.
( 3 ) ON the 18th day of April 1965, Benarashilal Jhunjhunwaila died. On 12th day of July 1965 Ramnibas Jhunihunwalla died
( 4 ) THE heirs and legal representatives of both the original petitioner and respondent are mentioned in paragraph 8 of the petition
( 5 ) IN the petition sufficient cause was sought to be shown for not taking steps to have the judgment upon award not pronounced by alleging that there were negotiations between the applicant and his brother after the death of Ramnibas Jhunjhunwalla on or about 12th day of July. 1965 and the respondent so long as he was alive and after his death on 13th April, 1965 between the applicant and his mother on the one hand and the eldest son of the respondent on the other. There were no particulars indicating when the negotiation for settlement started and when it ended. There are again no particulars as to whether any proposal was made by either party and so what was the result thereof. This case of negotiation was denied by the respondent in this application In my opinion, on the materials before me it is difficult to hold that there were negotiations for settlement though there are circumstances which indicate the parties were minded to carry on negotiations for settlement The circumstances are that the respondents in this application after the death of their father have not taken any steps to bring themselves on the record. The further circumstance is that the parties are near relations and that the parties have not taken steps for years to bring the application and the judgment upon award matter to a hearing.
( 6 ) HENCE, the application as an application for setting aside the abatement fails. Mr. Shroff, learned counsel appearing for the applicant, however, sought to support the application on purely points of law on a different basis entirely. He firstly submitted that it was unnecessary in an arbitration proceeding to make an application for setting aside the abatement, for Order 22 of the Civil Procedure Code does not apply to arbitration proceedings. He secondly submitted that even if it does apply, Rule 6 of Order 22 is applicable to the facts of this case and here the abatement need not be set aside.
( 7 ) THE Arbitration Act is a consolidating Act in certain respects. Be that as it may Section 41 of the Arbitration Act, however, makes the provisions of the Code of Civil Procedure, 1908 applicable to arbitration proceedings. The relevant portion of Section 41 is as follows:--"subject to the provisions of this Act and of rules made thereunder: (a) the provisions of the Code of Civil Procedure 1908 shall apply to all proceedings before the Court, and to all appeals under this Act. "
( 8 ) THEREFORE, the first question for consideration is whether having regard to the provisions of the Arbitration Act and Rules made thereunder, Order 22 can at all be applied to arbitration proceedings.
( 9 ) ORDER 22 is expressly applicable to suits and appeals. It proceeds on the basis that on the death of one or more of the parties,
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