HIGH COURT OF CALCUTTA
Bachawat
GANPATRAI AND SONS - Appellant
Versus
RAMGOPAL NANDA KISHORE - Respondent
Award 317 Of 1953
Decided On : DECEMBER 20, 1954
ARBITRATION - EXTENSION OF TIME - POWER OF COURT - SECTION 16 (2) AND (3), INDIAN ARBITRATION ACT, 1940 - CONSTRUCTION - COURT HAS POWER TO EXTEND TIME AFTER EXPIRY OF TIME FIXED - SECTION 16 (3) DOES NOT PUT A FETTER UPON THE POWER OF ENLARGEMENT OF TIME CONFERRED BY SECTION 16 (2).
Fact of the Case:
The petitioner referred its claim for damages to the arbitration of the Bengal Chamber of Commerce and Industries under the arbitration clause contained in the contract. The Chamber made its award in favor of the petitioner. By consent order, the Court remitted the award to the Chamber for reconsideration in accordance with the rules of its Tribunal of Arbitration. The Chamber fixed a date for reconsideration, but no meeting was held on that date or thereafter. The Registrar of the Chamber requested the parties to apply to the Court for two months extension of the time to reconsider the award. The time to reconsider the award and to submit the fresh decision expired. The petitioner applied for extension of time.
Finding of the Court:
The Court held that it has the power to enlarge the time fixed for reconsideration of the award even after the expiry of the time fixed. However, in the circumstances of the case, the Court declined to enlarge the time.
Issues: Whether the Court has the power to extend the time for reconsideration of the award after the expiry of the time fixed.
Ratio Decidendi: The Court held that Section 16 (2) of the Indian Arbitration Act, 1940 empowers the Court to extend the time fixed for reconsideration of the award. The Court further held that Section 16 (3) of the Act, which provides that the award remitted for reconsideration becomes void on failure of the arbitrators to reconsider it, does not put a fetter upon the power of enlargement of time conferred by Section 16 (2).
Final Decision: The Court dismissed the application for extension of time.
( 1 ) THIS is an application for extension of the time of, the arbitrators to reconsider their award.
( 2 ) ON 29,12-1952, the petitioner referred its claim for damages to the arbitration of the Bengal Chamber of Commerce and Industries under the arbitration clause contained in the contract dated 15-12-1952. On 27-6-1953, the Bengal Chamber of Commerce made its award No. 680 of 1953 in favour of the petitioner.
( 3 ) BY consent order dated 15-4-1954 this Court remitted the award to the Bengal Chamber for reconsideration in accordance with the rules of its Tribunal of Arbitration and the Chamber was direct ed to submit its decision within 3 months from 15-4-1954. Subsequently correspondence passed between the Registrar of the Chamber and the attomies of the parties with regard to the question whether the reconsideration of the award should be by the arbitral court which made the award or by a new arbitral court to be appointed by the Regis trar of the Chamber. By letter dated 23-6-1954 the Chamber fixed 1-7-1954 for the reconsidera tion of the matter. But no meeting was held on 1-7-1954 or thereafter. On 12-7-1954 the Registrar of the Chamber wrote to the attornies for the peti tioner stating that it would not be possible for the Chamber to make the award within 14-7-1954 and requesting the" parties to apply to the Court for two months extension of the time to reconsider the award. On or about 15-7-1954 the time to re consider the award and to submit the fresh deci sion expired. On 19-8-1954, this summons was taken out.
( 4 ) MR. Bhabra appearing "on behalf "of the respondent contends that after the expiry of 15-7-1954, the Court has no power to extend the time and also that assuming that the Court has such power the Court ought not to grant the extension in the circumstances of this case.
( 5 ) SECTION 16 (1), Indian Arbitration Act, 1940, gives power to the Court from time to time to remit an award or any matter referred to arbitration to the arbitrators or umpire for reconsideration upon such term as the Court thinks fit in certain circumstances mentioned in the sub-section, The provisions of Sections 16 (2) and (3) and 28 (1), Indian Arbitration Act, 1940 are as follows: 16 (2 ). "where an award is remitted under Sub-section (1) the Court shall fix the time within which the arbitrator or umpire shall submit his decision to the Court; Provided that any time so fixed may be extended by subsequent order of the Court. 16 (3 ). An award remitted under Sub-section (1) shall become void on the failure of the arbitrator or' umpire to, reconsider it and submit his decision within the time fixed. 28 (1 ). The Court,-may, if it thinks fit, whether the time for making the award has expired or not and whether the award has been made or not, enlarge from time to time the time for making the award. " section 16 requires the Court to fix a time within which a remitted award has to be reconsidered and within which the reconsidered award has to be submitted and empowers the Court to extend the time so fixed. In my opinion Section 16 in itself contains an exhaustive and complete provision with regard to such time. The Court can enlarge this time in exercise of its- powers under Section 16 and not by recourse to Section 28. Section 28 enables the Court to enlarge the time fixed for the making of the award and not the time fixed for filing a new award on reconsideration of an award which has already been made,
( 6 ) THE provisions of Section 16 (2) and (3) require careful consideration. Under the proviso to Section l6 (2) the Court may extend the time fixed by the order of remission by a subsequent order. The proviso does not require that the subsequent order must be made before the expiry of the tune so fixed. The discretion of the Court is unfettered and may be exercised both before and after the expiry of the time according to the necessities of the case.
( 7 ) MR. Bhabra contends that Court cannot now extend the time beca
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