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1958 Supreme(Cal) 28

HIGH COURT OF CALCUTTA
P. B. CHAKRAVARTTI, S. C. LAHIRI
NALINI RANJAN GUHA - Appellant
Versus
UNION OF INDIA (UOI) - Respondent
A. F. O. O.  124  Of  1956
Decided On : FEBRUARY 4, 1958

Advocates Appeared:
G.P.KAR, R.CHAUDHARY

An award is made when it is put into writing and signed by the arbitrator, and not when it is communicated to the parties or filed in Court.

Headnote:

ARBITRATION - Award - Making of award - Whether an award is made when it is put into writing and signed by the arbitrator or when it is communicated to the parties or filed in Court - Section 14 of the Arbitration Act, 1940.

Fact of the Case:

The appellant, Nalini Ranjan Guha, instituted a suit against the Union of India for the recovery of a certain sum of money, claimed as due to him on account of some work done. After the suit had made some progress, the Union of India made an application for a stay of the suit on the ground that there was an arbitration agreement between the parties. Subsequently, an application was made for a reference of the differences in the suit to arbitration and S. R. Das Gupta, J. , directed a reference to be made with respect to so much of the claim as was within the contract in which the arbitration agreement was contained. After that order was made, the matter came to be dealt with by Bachawat, J. , who, on 2-7-1952, appointed Mr. R. C. Dev to be the arbitrator. Mr. Dev declined the office and thereupon the late Mr. K. K. Basu was appointed. Mr. Basu entered on the reference, but shortly thereafter he died. Then, on the 27th of January, 1954, an order was made by Sarkar, J. , appointing Mr. S. A. Masud, a member of the Bar, to be the arbitrator in the case. The order stated that the arbitrator was to make his award in writing and submit the same to the Court, together with all proceedings had, depositions recorded and exhibits filed before him within six months from the date of service on him of an office copy of the order of reference.

Finding of the Court:

The Court held that the award was made on 31-12-1955, when the arbitrator wrote it out and signed it, and not on 3-1-1956, when he informed the parties of his having made the award and sent the award to be filed in Court. The Court further held that the failure of the arbitrator to communicate the contents of his award or to file it by 31-12-1955, in addition to writing out and signing it, did not constitute legal misconduct for which the award ought to be set aside.

Issues: 1. Whether an award is made when it is put into writing and signed by the arbitrator or when it is communicated to the parties or filed in Court? 2. Whether the failure of the arbitrator to communicate the contents of his award or to file it by the specified date, in addition to writing out and signing it, constitutes legal misconduct for which the award ought to be set aside?

Ratio Decidendi: 1. An award is made when it is put into writing and signed by the arbitrator, and not when it is communicated to the parties or filed in Court. This is evident from the language of Section 14 of the Arbitration Act, 1940, which provides for four separate things, namely, the making of the award, the signing of it, the giving of notice to the parties of the making and signing, and lastly, the filing of the award. The first in the sequence of acts which the section contemplates is the making of the award. Signing comes next. If the language of the section is to be taken literally, it must be held that the making of the award is, in the view of the section, something distinct from the signing of it and that the making precedes the signing. 2. The failure of the arbitrator to communicate the contents of his award or to file it by the specified date, in addition to writing out and signing it, does not constitute legal misconduct for which the award ought to be set aside. This is because the law has been increasingly liberal towards failures to make the award within the time limited by law or the order of the Court and that, as it stands at present, an award made out of time can be validated by the Court by extending the time even after the award has been made.

Final Decision: The appeal was dismissed with costs.

P. CHAKRAVARTTI, C. J.

( 1 ) THE only question involved in this appeal is whether the arbitrator made his award within the time extended to him by the Court or whether, by making it after the expiry of such time, he made himself guilty of misconduct. The argument before us turned solely on that single question. Mr. Chaudhuri, who appeared for the appellant, did mention another count of misconduct without, however, pressing it. About that item of alleged misconduct, I shall have to say something later.

( 2 ) AS regards the point actually pressed before us, the facts are as follows. On 20-11-1950, the appellant, Nalini Ranjan Guha, instituted a suit against the Union of India on the Original Side of this Court for the recovery of a certain sum of money, claimed as due to him on account of some work done. After the suit had made some progress, the Union of India made an application on 18-1-1951 for a stay of the suit on the ground that there was an arbitration agreement between the parties. Subsequently, on 3-4-1951, an application was made for a reference of the differences in the suit to arbitration and S. R. Das Gupta, J. , directed a reference to be made with respect to so much of the claim as was within the contract in which the arbitration agreement was contained. After that order was made, the matter came to be dealt with by Bachawat, J. , who, on 2-7-1952, appointed Mr. R. C. Dev to be the arbitrator. Mr. Dev declined the office and thereupon the late Mr. K. K. Basu was appointed. Mr. Basu entered on the reference, but shortly thereafter he died. Then, on the 27th of January, 1954, an order was made by Sarkar, J. , appointing Mr. S. A. Masud, a member of the Bar, to be the arbitrator in the case. The order stated that the arbitrator was to make his award in writing and submit the same to the Court, together with all proceedings had, depositions recorded and exhibits filed before him within six months from the date of service on him of an office copy of the order of reference.

( 3 ) IT appears that Mr. Masud found considerable difficulty in completing his enquiry and extensions of time were successively applied for and granted on numerous occasions. In 1955 alone, five such extensions had to be taken for and in the preceding year as well, the time had had to be extended, but on how many occasions it does not appear. The order of reference, as I have already stated, was made as long ago as on 27-1-1954, but even on 20-9-1955, the arbitrator had not done with the reference. As to the cause of that unusual delay, there are allegations and denials, but with that matter we are not here concerned. On 20-9-1935, the last application was made for an extension of time to make the award and the time was extended up to 31-12-1955. The order made on that date did not say that the time was being granted for making and submitting the award to Court, as the order of 27-1-1954, had done, hut merely said that the time to make the award was being extended.

( 4 ) ON 31-12-1955, the last day of the period of the last extension granted to him, the arbitrator wrote out his award and signed it. We are informed that the 1st and 2nd of January were holidays. It was only on 3-1-1956, that the arbitrator notified the parties that he had made his award and, on the same day, he sent the award to this Court for the purpose of being filed. Then, on the 2nd of March, following, the appellant made an application for setting aside the award. His application was dismissed by Mallick, J. , and against that order of the learned Judge he has appealed.

( 5 ) THE appellant contends that although the arbitrator wrote out his award on 31-12-1955 and even signed it on that date, he could not still be said to have made his award within the time extended to him, because he did not make his award known till after the expiry o the period. According to the appellant, an award is not made when it is put into writing, nor made when it is signed by the arbitrator, but




















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