1963 Supreme(Cal) 169
HIGH COURT OF CALCUTTA
D. N. Sinha, A. C. Sen
CHATURBHUJ SOHANLAL - Appellant
Versus
CLIVE MILLS CO. LTD. - Respondent
Appeal 111 Of 1961
Decided On : JULY 30, 1963
The affixation of a copy of the notice on the outer door of the appellant's premises was not essential in the circumstances of the case, as the essential formalities of service were completed by the delivery of the copy of the notice to the appellant.
Headnote:
ARBITRATION ACT - SECTION 14(2) - SERVICE OF NOTICE - VALIDITY - AFFIXATION OF COPY OF NOTICE - ESSENTIALITY - INTERPRETATION OF ORDER V RULES 10, 12, 16 AND 17 OF THE CODE OF CIVIL PROCEDURE, 1908.
Fact of the Case:
The appellant, a partnership firm, entered into a contract with the respondent company for the sale and purchase of jute. Disputes arose and were referred to arbitration. The Tribunal made an award in favor of the respondent. Notice of the filing of the award was issued under Section 14(2) of the Arbitration Act, 1940. The appellant filed an application to set aside the decree passed on the award, alleging that no valid notice was served. The appellant claimed that the service was not in accordance with law as the notice was not served on the appellant as a partner or on any member of the joint family, and that the service was not in the manner prescribed by law.
Finding of the Court:
The court found that the notice was duly served on the appellant in accordance with the provisions of Order V of the Code of Civil Procedure, 1908. The court held that the appellant was present when the notice was served, and a copy of the notice was delivered to him, which he accepted. The court further held that the appellant's refusal to sign an acknowledgment of service did not render the service invalid, as the essential formalities of service had been completed by the delivery of the copy of the notice to the appellant.
Issues: 1. Whether the service of notice under Section 14(2) of the Arbitration Act, 1940, was valid.
Ratio Decidendi: The court held that the service of notice under Section 14(2) of the Arbitration Act, 1940, was valid, even though the appellant refused to sign an acknowledgment of service. The court interpreted Order V Rules 10, 12, 16, and 17 of the Code of Civil Procedure, 1908, and held that the essential formalities of service were completed by the delivery of the copy of the notice to the appellant. The court further held that the appellant's refusal to sign an acknowledgment of service did not render the service invalid, as the affixation of a copy of the notice on the outer door of the appellant's premises was not essential in the circumstances of the case.
Final Decision: The appeal was dismissed with costs.
( 1 ) THIS is an appeal against an order made by Mitter, J. , dated 1st May, 1961 whereby he dismissed an application made on behalf of the respondent, under Section 14 (2) of the Arbitration Act for setting aside a decree made in terms of an award made in Case No. 249 of 1949 of the Tribunal of Arbitration, Bengal Chamber of Commerce. The facts are briefly as follows: The appellant before us, the petitioner in the said application, is a partnership firm, of which the partners are Sohanlal Ruia and Iswari Prosad Ruia. By a contract in writing No. 46/a dated 29th March 1946 entered into between the appellant firm and the respondent company, Messrs. Clive Mills, Co. Ltd. the appellant sold and the respondent bought, 2000 mda of jute on terms and conditions mentioned in the said contract, which was in the prevailing contract form of the Indian Jute Mills Association. The said contract contained the usual arbitration clause whereby all disputes and differences were to be referred to the arbitration of the Bengal Chamber of Commerce, according to the rules of its Tribunal of Arbitration for the time being in force. Disputes and differences having arisen between the parties in respect of the said contract, the same were referred to the arbitration of the Tribunal of the Bengal Chamber of Commerce, in terms of the said arbitration clause and was numbered as Case No. 485 of 1947. In accordance with the rules of the said Tribunal, the Registrar constituted a court to adjudicate upon the dispute. Notice of the fact was given to the appellant and it was asked to file its statement. On account of certain proceedings had in this Court, the arbitration could not be proceeded with before July, 1949. On the 2ist July, 1949 the Tribunal made an award against the appellant and in favour of the respondent, for a sum of Rs. 36,500/- together with interest at the rate of 6 per cent per annum, and costs. On the 23rd February, 1950 a notice under Section 14 (2) of the Arbitration Act (hereinafter referred to as the 'said Act") was issued from this Court; Section 14 (2) provides that the arbitrators shall, at the request of any party to the arbitration agreement, cause the award or a signed copy of it together with any deposition or document which may have been taken and proved before the arbitrators, to be filed in Court, and the Court shall thereupon give notice to the parties of the filing of the award. The said 'act does rot prescribe the manner in which the service of notice under Section 14 (2) is to be effected. Section 44 of the said Act gives the High Court the power to make rules consistent with the said Act as to the filing of awards and all proceedings consequent thereon and incidental thereto. Rules have been framed by the High Court in exercise of such flower. Under Rule 14, where the provisions of Rule 13 are complied with by the arbitrators, the Registrar is required to file the award and to issue notice thereof to the parties under Section 14 (2) of the said Act intimating to them that the Court will proceed to pronounce judgment thereon on a date to be fixed in the notice. The notice is in a prescribed form, being Form No. 6, and it is to be served by such party or parties as the Registrar may direct Rule 15 prescribes that such a notice has to be served not less than eight clear days before the returnable date, in the manner provided for service of notice in Chapter VIII, so far as the same may be applicable. Rule 26 of Chapter VIII lays down that"except where otherwise provided by Statute or prescribed by Rules of this Court, all notices, summonses, orders or other documents required to be given to or served, on any person, shall be served in the manner provided by the Code for the service of summons. "under Rule 28,"where personal service of a notice is required, the service shall be effected, as nearly as may be, in the manner prescribed for the personal service of a Writ of summons. "
( 2 ) ON the 6th March, 1950 the