SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2001 Supreme(Del) 1391

High Court Of Delhi
RATTAN LAL - Appellant
Versus
KRISHAN KUMAR - Respondent
First Appeal (OS) 182 of 1990
Decided On : 09/27/2001

Advocates Appeared:
P.K.Seth, SANDIP AGARWAL

Headnote:Arbitration Act, 1940 - Section 32 — Bar to suits contesting Arbitration agreement — Disputes between parties relating to partnership firm — Disputes referred for adjudication to arbitrators — Award pronounced but certain disputes remain undecided — A suit for dissolution of firm and rendition of accounts filed by the respondent — Appellant filed an application under Section 32 of the Arbitration Act, 1940 — Learned Single

       Judge held that arbitrators could have refused the adjudication but could not have recorded that disputes stood settled when parties agreed in a previous suit to refer the remaining disputes to arbitrators for adjudication — Reasoning and conclusion of the single Judge is sound, no reason to interfere with the order — Appeal dismissed.

       Held:

       The natural corollary to such an order would be that there must have been disputes and differences persisting between the parties which were referred to the two arbitrators. If there were no disputes and differences persisting and nothing further had to be done, there was no occasion for the agreement for reference of these matters to the two arbitrators. Admittedly, the arbitrators have failed to decide the alleged disputes. The learned Single Judge has rightly recorded that the arbitrators could have refused to adjudicate upon the disputes but they could not have recorded that the same stood settled when by agreement the parties agreed to once again refer their disputes to the arbitration of the two arbitrators.

SANJAY KISHAN KAUL

( 1 ) THE appellants are aggrieved by the impugned order dated 21. 8. 90 passed by the learned Single Judge dismissing their application filed under section 32 of the Arbitration Act, 1940 in the suit filed by the respondents for dissolution of the partnership firm, M/s. National refrigeration Works and for rendition of accounts.

( 2 ) THERE is prior history of disputes between the parties relating to the said partnership firm of M/s. National Refrigeration Works. The parties are closely related as appellant no. 1 and respondent no. 1 are brothers while appellants 2 and 3 are the sons of appellant no. 1 and respondent no. 2 is the son of respondent no. 1. The partnership is stated to have been constituted vide partnership deed dated 26. 6. 1975 but disputes arose between the partners in the year 1978 resulting in a document dated 18. 4. 1978 described as Power of Attorney but in terms whereof by mutual consent the disputes were REFERRED TO for adjudication to the arbitration of Sh. Arjan Singh and Sh. Umrao Singh.

( 3 ) THE factual matrix has been set out by the learned Single Judge in the impugned order. An interim award was given on 18. 4. 1978 followed by further awards on 19th and 20/04/1978. The lis between the parties arises because of two rival contentions- the appellants contend that the said awards were acted upon and no disputes survived while on the other hand the respondents contend that the appellants did not implement the awards and certain disputes still remained undecided.

( 4 ) ANOTHER aspect which is relevant is that the respondents had earlier instituted a suit for dissolution of the partnership and rendition of accounts in this court being suit no. 1169/1979 in which proceedings also the appellants had filed an application under section 32 of the arbitration Act, 1940 but ultimately by agreement the disputes were REFERRED TO to the same arbitrators who had adjudicated upon the disputes earlier and consequently the said suit was withdrawn on 7. 5. 1980 with liberty to file a fresh suit on the same cause of action, if need be. The respondents filed the present suit from which these proceedings have arisen alleging that there has been no progress in the reference made to the Arbitrators as per order dated 7. 5. 1980 and the arbitrators were unable to settle the pending issues or implement the pending matters as intimated by the said arbitrators.

( 5 ) THE application filed by the appellants under section 32 of the Arbitration Act, 1940 in the present proceedings has been contested by the respondents where the rivals contentions have been advanced as a consequence of the order dated 7. 5. 1980 in suit no. 1169/79 and the subsequent developments. The respondents have stated that in view of the failure of the arbitrators to decide the matter in controversy, and as a result of the liberty granted to file a fresh suit at the stage of withdrawal of suit No. 1169/1979 on 7. 5. 1980, the respondents were entitled to maintain the present suit. The appellants have resisted the suit in view of the writing dated 31. 3. 1983 alleged to be between the partners of the firm to the effect that all disputes inter se the parties had been settled in terms of the awards passed by the arbitrators earlier and nothing survived to be adjudicated upon. It was thus stated that nothing remain to be decided in view of the final award of the arbitrators.

( 6 ) THE learned Single Judge has considered the submissions advanced on behalf of the appellants propounding the proposition of law that even if an award is not made a rule of the court, the same is binding upon the parties and has recorded that there is no doubt about this legal proposition. We may note that in the submissions advanced before us no dispute has been raised about the said legal proposition.

( 7 ) THE learned Single Judge rightly noted the controversy between the parties as one which relates to the adjudication of the fact whether all the disputes inter s


















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top