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1982 Supreme(Cal) 333

High Court Of Calcutta
SABYASACHI MUKHERJI, SUHAS CHANDRA SEN
BHARATI MUKHERJEE - Appellant
Versus
SHIVA TRADING CO. - Respondent
A. F. O. O.  224  Of  1981
Decided On : 09/15/1982

Advocates Appeared:
D.K.Bose, P.K.DAS, R.PAL

An Arbitrator enters on a reference when he first applies his mind to the dispute or controversy before him depending on the facts and circumstances of each case.

Headnote:

ARBITRATION - AWARD - SETTING ASIDE - OPPORTUNITY OF BEING HEARD - LIMITATION - ARBITRATOR - ENTERING ON REFERENCE.

Fact of the Case:

Appellant failed to pay monthly hire for a vehicle hired from Respondents under a hire purchase agreement. Respondents determined the agreement and referred the dispute to arbitration. Appellant claimed she did not receive notice of the arbitration proceedings or a copy of the statement of claim. The Arbitrator made an award in favor of the Respondents. Appellant filed an application to set aside the award, which was dismissed by the Trial Court.

Finding of the Court:

The Court found that the Appellant had reasonable opportunity of being heard before the Arbitrator. The Arbitrator had sent a notice to the Appellant enclosing a statement of claim and directing her to file a counter-statement. The Appellant had also appeared before the Arbitrator on two occasions and had requested for adjournments. The Court also held that the award was not barred by limitation as the Arbitrator had not entered on the reference until he received the statement of claim from the Respondents.

Issues: 1. Whether the Appellant was given a reasonable opportunity of being heard before the Arbitrator? 2. Whether the award was barred by limitation?

Ratio Decidendi: 1. The Court held that the Appellant had reasonable opportunity of being heard before the Arbitrator. The Arbitrator had sent a notice to the Appellant enclosing a statement of claim and directing her to file a counter-statement. The Appellant had also appeared before the Arbitrator on two occasions and had requested for adjournments. 2. The Court held that the award was not barred by limitation as the Arbitrator had not entered on the reference until he received the statement of claim from the Respondents.

Final Decision: The Court dismissed the appeal and refused to stay the operation of the order.

SUHAS CHANDRA SEN, J.

( 1 ) THE appellant, M/s. Shiva Trading Company and others, the Respondents herein, had hired out a motor vehicle to the appellant, Smt. Bharati Mukherjee on the terms and conditions mentioned in the hire purchase agreement dt. 22nd March, 1976. Under the hire purchase agreement twenty four consecutive monthly rents of Rs. 1,400/- were payable. The first instalment, however, was to be of Rupees 1,800/- commencing from 1st June, 1976. The appellant, however, failed to pay any of the monthly hire which became due in spite of repeated demands. On or about 29th February, 1980 the hire purchase agreement was determined by the Respondents. The dispute between the appellant and the respondents was referred to arbitration on 6th April, 1980 at the instance of the respondent firm. The Arbitrator gave a notice to the appellant enclosing a copy of the statement of claim filed by the respondents and giving direction to file counter statement. The appellant's case before us, however, is that she did not receive any notice from the Arbitrator nor did she receive a copy of the statement of claim on that dale.

( 2 ) IT appears that a suit was also filed by Smt. Bharati Mukherjee (Suit No. 353 of 1980 ). In that suit it was alleged that all the instalments due under the hire purchase agreement had been paid and a declaration was prayed that the plaintiff was the owner of the Vehicle No WGA 3453. On 16th June. 80 an application was made under Section 34 of the Arbitration Act. 1940 by the Respondent No. 1 for stay of the suit. On 24th Sept. 1980 an order was passed staying the suit.

( 3 ) THEREAFTER on 24th/29th November, 1980, the Arbitrator sent a notice for a meeting to be held on 6th December, 1980. The Arbitrator's notice was on the following terms :--"please note that a meeting will be held on 6th December, 1980 at my office of Criminal Court, 6, Baker Road, Alipur at 3-30 P. M. You are requested to appear with all your evidence on that date failing which reference would be proceeded ex parte. "

( 4 ) ON 6th December, 1980 both the parties appeared before the Arbitrator but at the request of the appellant the meeting was adjourned till 20th December, 1980 on the ground that the appellant had been taken ill. The appellant had filed a petition for adjournment and the minutes of the proceeding before the Arbitrator are as follows:-

-"sri Ghosal files a petition for adjournment for reasons stated in his petition. Considered and heard both parties. The meeting will be held on 20-12-1980 at 3 P. M. at the same address i. e. at 6, Baker Road in the Chamber of the Arbitrator. No further adjournment will be granted"thereafter another notice was sent to the appellant dated 8th December, 1980 and in that meeting the appellant asked for further adjournment of the case. But the prayer for adjournment was refused. The minutes of the meeting held on 20th December, 1980, are as follows:--"mr. M. R. Bose states that he has received instructions from Smt. Bharat Mukherjee to pray for an adjournment to prefer an appeal in the Hon'ble High Court. Mr. D. P. Bajoria objects to any further adjournment and submits his claim. Heard both parties. Prayer for further adjournment is rejected. I will make my award and publish the same in due course. "

( 5 ) THEREAFTER an award was made by the Arbitrator on 5th February, 1981, wherein it was stated inter alia, that "i have read and considered the papers filed before me and I have heard and considered the evidence and submissions made before me and I make the following award. '' On 24th March, 1981, the appellant was served with a notice dated 17th March. 1981, under Section 14 (2) of the Arbitration Act stating that the award had been filed in Court on 11th March, 1981 and that judgment upon award will be pronounced on 28th April, 1981. On 16th April, 1981, the present application for setting aside the award was made by the appellant. That application was heard by Salil K. Roy Chowdhury, J. In t
















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