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

1980 Supreme(Raj) 39

High Court Of Rajasthan
Judgename : S.K.Mal Lodha,Kanta Bhatnagar
STATE OF RAJASTHAN - Appellant
Versus
SHARMA - Respondent
Civil Misc. Appeal 95 Of 1970
Decided On : 02/12/1980

Advocates Appeared:
D.S.Shishodia

The court cannot make a reference to the arbitrator after appointing him under Section 8(2) of the Arbitration Act, and an award made on such a reference is a nullity.

Headnote:

ARBITRATION - APPOINTMENT OF ARBITRATOR - REFERENCE - JURISDICTION OF COURT - COURT CANNOT MAKE REFERENCE AFTER APPOINTING ARBITRATOR UNDER SECTION 8(2) OF THE ARBITRATION ACT - AWARD MADE ON SUCH REFERENCE IS A NULLITY.

Fact of the Case:

The appellant (State of Rajasthan) and the respondent (M/s. Sharma and Co.) entered into an agreement for the supply of bricks. A dispute arose between the parties, and the respondent filed an application under Section 8 of the Arbitration Act for the appointment of an arbitrator. The court appointed Shri R. L. Malhotra as the arbitrator. The arbitrator made an award in favor of the respondent. The appellant challenged the award, arguing that the court had no jurisdiction to make a reference to the arbitrator after appointing him under Section 8(2) of the Act.

Finding of the Court:

The court held that the award was a nullity because the court had no jurisdiction to make a reference to the arbitrator after appointing him under Section 8(2) of the Act. The court relied on the Supreme Court decision in Union of India v. Om Prakash, which held that the court cannot make a reference to the arbitrator after appointing him under Section 8(2) of the Act, and that an award made on such a reference is a nullity.

Issues: Whether the court had jurisdiction to make a reference to the arbitrator after appointing him under Section 8(2) of the Arbitration Act.

Ratio Decidendi: The court held that the court had no jurisdiction to make a reference to the arbitrator after appointing him under Section 8(2) of the Act. The court relied on the Supreme Court decision in Union of India v. Om Prakash, which held that the court cannot make a reference to the arbitrator after appointing him under Section 8(2) of the Act, and that an award made on such a reference is a nullity.

Final Decision: The court allowed the appeal, set aside the judgment and decree of the lower court, and set aside the award made by the arbitrator.

Judgment


LODHA, J.

( 1 ) THIS appeal under Section 39 of the Arbitration Act (No. X of 1940) (hereinafter referred to as the Act) is directed against the judgment and decree dated June 6, 1970 passed by the District Judge, Sri Ganganagar.

( 2 ) THE material facts, necessary for the disposal of this appeal, are these: the respondent (M/s. Sharma and Co.) entered into an agreement with the appellant (the State of Rajasthan) on December 17, 1961 for supply of forty lacs of Pacca bricks to the Irrigation Department of the government of Rajasthan. According to Clause 21 of the Agreement, all disputes arising between the parties in connection with the contract were required to be referred for arbitration to the superintending Engineer of the Irrigation as may be nominated by the government. The respondent (contractor) completed the supply by july 26, 1962 and a final bill was prepared on December 25, 1962. The respondent, inter alia, raised a claim for the payment of costs of 1,12,152 bricks and the concerned Department disputed the same. On April 15, 1967, an application under Section 8 of the Act was submitted by the respondent before the learned Senior Civil Judge, sri Ganga-nagar. The case was registered as Civil Misc. Application no. 1 of 1967. The learned Senior Civil Judge, by his order dated July 11, 1967 appointed Shri R. L. Malhotra, retired Superintending engineer as the sole Arbitrator to decide the dispute between both the parties. The relevant portion of the order dated July 11, 1967 is as under:

"14. Thus for the reasons given above, I, therefore, hold that in the instant case the application made by the petitioner is maintainable and he is entitled to the re-relief claimed in the petition viz. for the appointment of an arbitrator for settlement of the difference between the parties. 15. In the result the application is allowed. Shri R. L. Malhotra retired Superintending Engineer Irrigation (Raj)c/o 392, Model Town, Jamnagar is appointed as an arbitrator. The non-petitioner shall pay Rs. 100/- as costs of this application to the petitioner. " Feeling aggrieved by the order dated July 11, 1967 appointing Shri R. L. Malhotra as arbitrator under Section 8 of the Act, the appellant preferred S. B. Civil Revision Petition No. 359 of 1967, which was dismissed by the learned single Judge of this court on January 9, 1968. The learned Senior Civil Judge, vide letter dated July 22, 1967 informed Shri R. L. Malhotra, retired Superintending Engineer, Irrigation Department, rajasthan, that he has been appointed as Arbitrator to arbitrate on the disputes between the parties vide order dated July 11, 1967. In pursuance of this Reference, Shri r. L. Malhotra proceeded with the arbitration proceedings and obtained extension of time for making the award under section 28 of the Act. Ultimately, he made the award on june 19, 1969. The award was sent to the Court of District judge, Sri Ganganagar by post on June 20, 1969. After the receipt of the award, notices were issued to both the parties. The respondent did not contest the award and prayed that a decree may be passed in terms of the award under Section 17 of the Act. The appellant raised various objections in the application which was filed on August 11, 1969 purporting to be under Section 17 read with Sections 30 and 33 of the Act praying therein that the award may be set aside. The learned District Judge framed the issues and refused to set aside the award by his order dated June 6, 1970 and passed a decree for Rupees 37,255. 07 p. in favour of the respondent and against the appellant with a rendition that the same will be executed only after the respondent had submitted a No-dues Certificate from the state Government in the Court. Against the judgment and decree dated June 6, 1970 the appellant has filed this appeal.

( 3 ) WE have heard Mr. D. S. Shishodia, learned Government Advocate. Nobody appeared for the respondent despite service.

( 4 ) IT was strenuously contended by the












Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

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