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

1972 Supreme(Del) 196

High Court Of Delhi
UNION OF INDIA - Appellant
Versus
K.L.BHALLA - Respondent
First Appeal Order 183D of 1964
Decided On : 08/23/1972

Advocates Appeared:
MADAN BHATIA, R.L.TANDON

The court has the power to extend the time for filing the decision of the arbitrator even after the expiry of the time originally fixed by the court, provided that there are valid grounds for such extension.

Headnote:

ARBITRATION - EXTENSION OF TIME - SECTION 16(2) - POWER OF COURT TO EXTEND TIME FOR FILING DECISION OF ARBITRATOR - SCOPE AND INTERPRETATION - COURT'S DISCRETION TO EXTEND TIME BEFORE OR AFTER EXPIRY OF ORIGINAL TIME FIXED - VALID GROUNDS FOR EXTENSION.

Fact of the Case:

The appellant and respondent entered into an agreement for the improvement of the water supply system in Delhi Cantonment, containing an arbitration clause. Disputes arose, and the matter was referred to arbitration. The arbitrator made an award, which was remitted back to him for reconsideration. The arbitrator filed his decision after the expiry of the time fixed by the court. The respondent objected to the award, arguing that it was void due to the delay. The appellant applied for an extension of time under section 16(2) of the Arbitration Act, 1940.

Finding of the Court:

The court held that the learned Subordinate Judge had the power to consider the question of extending the time for filing the decision of the arbitrator notwithstanding the fact that the decision had been filed after the expiry of the time previously fixed by the court. The court further held that there were sufficient grounds to extend the time for the filing of the award till the date of the actual filing of the award by the arbitrator, namely, 26. 5. 1962.

Issues: 1. Whether the court had the power to extend the time for filing the decision of the arbitrator after the expiry of the time originally fixed by the court. 2. Whether there were valid grounds to extend the time under section 16(2) of the Arbitration Act, 1940 till the date of the actual filing of the award by the arbitrator.

Ratio Decidendi: 1. The court held that the proviso to sub-section (2) of section 16 of the Arbitration Act, 1940 enables the court to extend the time for the filing of the decision of the arbitrator even after the expiry of the time originally fixed by the court. 2. The court found that the respondent had adopted dilatory tactics by filing an application for the removal of the arbitrator and obtaining an interim injunction order prohibiting the arbitrator from further proceeding with the arbitration proceedings. The court also noted that the arbitrator continued his proceedings after the interim injunction order was vacated and both parties participated in these proceedings. The court held that these circumstances constituted sufficient grounds for extending the time for the filing of the award till the date on which it was actually filed into Court.

Final Decision: The court allowed the appeal, set aside the order of the learned Subordinate Judge, and made the award filed by the arbitrator the rule of the Court.

M. R. A. ANSARI, J.

( 1 ) THE appellant and the respondent herein entered into an agreement styled as Contract No. CWE/d-17 of 1955-56 for the improvement to the distribution system of water supply in Delhi Cantonment. This agreement contained an arbitration clause by which disputes arising between the parties to the agreement relating to the subject-matter of the agreement were to be REFERRED TO to the sole arbitration of the arbitrator named in the said agreement. As a matter of fact, disputes did arise between the parties and, therefore, these disputes were REFERRED TO without the intervention of the Court to the arbitration of the sole arbitrator named in the agreement. The arbitrator made his award on 23. 10. 1958 and filed the same into Court. Notice of the filing of the award was issued to both the parties. Objections were filed by the appellant herein. It is not necessary for the purpose of this appeal to state the nature of the objections raised by the appellant at that stage. After hearing both the parties, the Court remitted the award back to the arbitrator for deciding the matters in dispute between the parties afresh after allowing the parties a reasonable opportunity to adduce whatever evidence they thought proper and necessary in support of their respective claims. The arbitrator was directed to file his award in Court by 31. 8. 1960. This time was extended subsequently to 30. 11. 1960. The respondent herein thereafter filed an application under sections 11 and 33 of the Arbitration Act, 1940 (hereinafter REFERRED TO to as the Act) for the removal of the arbitrator. An ex parte interim injunction order was passed by the Court on 2. 12. 1960 prohibiting the arbitrator from proceeding with the arbitration proceedings pending the disposal of this application filed by the respondent. Ultimately, this application was dismissed by the Court by its order dated 19th August, 1961 and the interim injunction order vacated. The arbitrator thereupon proceeded with the arbitration proceedings and ultimately submitted his decision to the Court on 26. 5. 1962. Notices were again issued to the parties and this time the respondent herein filed objections to the decision filed by the arbitrator. One of the objections was that the arbitrator had not submitted his decision to the Court within the time by the Court and that, therefore, the award of the arbitrator was void on that ground. These objections were filed on 9. 10. 1962. The appellant filed a reply to these objections on 10-12-1962. Subsequently, the appellant filed an application under sections 16 and 28 of the Act on 14. 5. 1964 praying that under the circumstances, the Court be pleased to extend the time for filing the award by the arbitrator to the date on which the arbitrator actually filed the award. This application was opposed by the respondent. No separate order was, however, passed on the application filed by the appellant under sections 16 and 28 of the Act. But in view of the objections raised by the respondent herein that the award filed by the arbitrator was barred by time, the learned Subordinate Judge framed the following issue:-

"whether the award, the reference and the proceedings of the arbitrator are illegal, void and liable to be set aside as per objections in para 8 of the objection petition?"

( 2 ) IN the order dated 29. 5. 1964, the learned Subordinate held on this issue that the award being beyond the time allowed by the Court must be held to be void. He, therefore, declared the award to be void and as such, he set aside the award. The present appeal has been filed by the appellant against the said order of the learned Subordinate Judge.

( 3 ) A preliminary objection has been raised by the learned counsel for the respondent against the maintainability of this appeal on the ground that the order of the learned Subordinate Judge is in fact an order refusing extension of time for filing the award into Court and appeal can be. filed under section 39 of th


















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
whatsapp-icon Back to top