Judges : K.K.NARENDRAN,PAREED PILLAY
ABDULKHADER HAJI - Appellant
Versus
KUNHAMMED - Respondent
Case No : M.F.A. No. 547 of 1978
Decided On : 04/14/1985
Advocates Appeared :
P.N.K. Achan; K. Vijayan; N.N. Sugunapalan; N. Nandakumara Menon; For Appellants M.K. Narayana Menon; C.D. Jose; T.V. Ramakrishnan; D.S. Warner; For Respondents
Arbitration - Questions of considerable importance in the law of Arbitration arise for consideration in this case. The questions are: (1) Whether the dismissal by court of an original petition by the Arbitrator under S.28 of the Arbitration Act. 1940 to enlarge the time for making the Award. will amount to 'superseding an arbitration' and whether an appeal will lie under S.39 of the Act from the order of dismissal; (2) Whether the Arbitrator can file an appeal from an order of the Court refusing to enlarge the time for making the Award; and (3) When the Arbitrator dies pending the appeal can any of the parties to the Arbitration agreement get himself transposed as the appellant. A question whether an Award passed in violation of an injunction restraining the Arbitrator from passing an Award has to be ignored also arises in the case. - S.28, S.39 of the Arbitration Act, 1940 - The court discussed the interpretation and applicability of S.28 and S.39 of the Arbitration Act, 1940, and the legal principles regarding the dismissal of an original petition by the Arbitrator, the right of the Arbitrator to file an appeal, and the transposition of parties in case of the Arbitrator's death. The court also considered the implications of passing an Award in violation of a court injunction and its legal validity.
Fact of the Case:
The case involved an appeal filed by the Arbitrator against the dismissal of his original petition for enlargement of time for making the Award under S.28 of the Arbitration Act, 1940. The Arbitrator was appointed as the sole Arbitrator for deciding disputes and partition of properties. The Court dismissed the original petition and an interim application, holding that the Award made during the period of an interim injunction was a nullity.
Finding of the Court:
The Court found that the dismissal of the original petition by the Arbitrator and the legal representatives' application for transposition were not maintainable. The Court also held that the Award made in violation of a court injunction was not valid.
Issues: The issues involved the appealability of the dismissal of the original petition, the competence of the Arbitrator to file an appeal, the transposition of parties in case of the Arbitrator's death, and the validity of an Award made in violation of a court injunction.
Ratio Decidendi: The Court held that the dismissal of the original petition amounted to superseding an arbitration, allowing an appeal under S.39 of the Arbitration Act. The Court also ruled that the Arbitrator was not a person aggrieved by the order refusing to enlarge time, and the appeal filed by him was incompetent. Additionally, the Court found that the passing of the Award in violation of a court injunction rendered the Award invalid.
Final Decision: The Court dismissed the appeal and the application for transposition, holding that the appeal had abated due to the Arbitrator's death and the Award made in violation of a court injunction was invalid.
1. Questions of considerable importance in the law of Arbitration arise for consideration in this case. The questions are: (1) Whether the dismissal by court of an original petition by the Arbitrator under S.28 of the Arbitration Act. 1940 to enlarge the time for making the Award. will amount to 'superseding an arbitration' and whether an appeal will lie under S.39 of the Act from the order of dismissal; (2) Whether the Arbitrator can file an appeal from an order of the Court refusing to enlarge the time for making the Award; and (3) When the Arbitrator dies pending the appeal can any of the parties to the Arbitration agreement get himself transposed as the appellant. A question whether an Award passed in violation of an injunction restraining the Arbitrator from passing an Award has to be ignored also arises in the case.
2. This appeal was filed by the Arbitrator against the order of the Court below dismissing his original petition for enlargement of time for making the Award under S.28 of the Arbitration Act. 1940. By the same order the Court also dismissed the interim application by which the appellant Arbitrator filed in court the Award he made pending the Original Petition for time to make the Award.
3. As per an Arbitration agreement dated 24-6-1973 the respondents appointed the appellant as the sole Arbitrator for deciding certain disputes and for partition of the properties scheduled to the Original Petition. The Original Petition for extension of time was filed in the court below on 28-2-1974. On 14-8-1974 the court granted time up to 23-12-1974. On 18-11-1974 the 6th respondent who was exparte filed an interim application for setting aside the exparte order alleging that the Arbitrator and the first respondent colluded and obtained an extension of time for making the Award. On 18-11-1974 itself the 6th respondent filed an application for injunction restraining the Arbitrator from making the Award. Though the interim order of injunction issued by the court on 18-11-1974 was attempted to be served on the Arbitrator on 19-11-1974 he refused to accept the same. The Arbitrator then passed the Award and the same is purported to have been signed by him on 22-11-1974. On 17-1-1975 the exparte order against the 6th respondent was set aside. Though the Arbitrator challenged the above order in a civil revision before this Court the same was dismissed by this Court on 26-5-1975. On 17-1-1975 the interim order of injunction also ceased to be in force. On 31-2-1975 the Arbitrator gave notice to the parties except the 6th respondent. of the making of the Award. On 19-2-1975 the Award was filed in court along with I.A. 208 of 1975. On 8-4-1975 the 6th respondent filed a counter challenging the making and filing of the Award in Court.
4. The Court below dismissed the Original Petition for extension of time for making the Award and I.A. 208 of 1975 filing the Award in court holding:
"In the case on hand the arbitrator has not given notice of filing the award. However. the court issued notice on 15-3-1975and the 6th respondent filed a counter challenging the award on 8-4-1975. Hence the objection is filed. within time. That apart. the award; was made at a time when interim injunction was in force. Moreover. when the award was made the period had expired and the application for extension of time was not allowed by the Court. Hence the award sought to be canvassed in I.A.No.203 of 1975 is a nullity. Since the award is made even before the extension of time. O.P.N3.7/1974 becomes infructuous."
5. As already mentioned the Arbitrator filed this Miscellaneous first Appeal against the above order of the Court below. Pending the appeal the Arbitrator left this world on 9-10-1984. On 11-11-1984 the legal representives of the Arbitrator filed C.M.P. No. 30226 of 1984 to implead them as supplemental appellants in the appeal. The 3rd respondent in the appeal opposed the impleading by contending that when the Arbitrator died no cause of acti
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