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2017 Supreme(Raj) 2759

RAJASTHAN HIGH COURT
Arun Bhansali, J.
Sushil Choudhary - Appellant
Versus
Shyam Lal Choudhary - Respondent
Civil Misc. Appeal No. 2042 of 2013
Decided On : 03-10-2017

Advocates Appeared:
Mr. O.P. Mehta, Advocate, for the Appellant; Mr. Shyamlal Chowdhary, Advocate, for the Respondent No. 1 in person

Headnote:

Arbitration and Conciliation Act, 1996 - Sections 37, 34 and 11(5) - Partnership Act, 1932 - Sections 14 and 48 - Reliefs indicates - Granted permission - Reliefs granted - Partnership firm - Documents in rebuttal - Appeal under section 37 of Arbitration and Conciliation Act, Is directed against order passed by Additional District Judge Metro - Application filed by appellant under Section 34 of Act has been rejected. On a dispute arising between parties, on an application filed by Services and against and under Section 11(5) of Act, High Court by its order appointed arbitrator indicating that matter concerns accounts of partnership firm Services and that all objections as to claim - Jurisdiction shall be raised before arbitrator – Claimant filed her claim before sole arbitrator - Claim was contested by appellant on several grounds - Preliminary objections were raised, were rejected by arbitrator - Where-after points for determination were framed, parties led evidence and arbitrator after hearing parties - Concluded hearing and fixed for passing of award. it was indicated by arbitrator that on he was informed by claimant that she wanted to file certain certified copies and, therefore, award was not prepared. Claimant filed certain documents along-with application - Application was contested by appellant - Application was allowed on payment of cost - Appellant was granted permission to file documents in rebuttal. Ultimately final arguments were heard on and award was passed on – Held, Bare perusal of above reliefs indicates that there is no mention of various claims - Which have been accepted by arbitrator - Entire claim of money was based on balance-sheet as would be clear from prayer made in para, which claim has been rejected by learned arbitrator - Rejection in absence of any challenge under Section 34 of Act has become final. In that view of matter, as award is on its face beyond scope of claim petition, same cannot be sustained on said ground as well - Learned lower court before whom issues were raised, without examining pleas raised in proper perspective - Refused to examine said aspects by indicating that scope under Section 34 of Act was limited, which determination made by lower court also cannot be sustained - So far as various plea raised by appellant and respondent pertaining to merit of various amounts awarded are concerned and plea raised by appellant pertaining to award being in violation of provisions of sections 14 and 48 of Partnership Act - Findings recorded which goes to root of matter, same does not require any determination by this Court - No other ground was raised/pressed by appellant qua the reliefs granted by learned arbitrator - So far as award of costs of by learned arbitrator is concerned, in circumstances of case - Same does not call for any interference - Appeal filed by appellant is partly allowed - Award passed by sole arbitrator as upheld by order by Additional District Judge - Metro is set aside only to extent of relief. Rest of the award is upheld - Appeal Partly Allowed

JUDGMENT

Arun Bhansali, J. - This appeal under section 37 of the Arbitration and Conciliation Act, 1996 (''the Act'') is directed against the order dated 02.08.2013 passed by the Additional District Judge No. 3, Jodhpur Metro (''the lower court''), whereby the application filed by the appellant under Section 34 of the Act has been rejected.

2. On a dispute arising between the parties, on an application filed by M/s. Jodhpur Computer Services and Smt. Anita Chowdhary against Sushil Choudhary and Ms. Sanjana Purohit under Section 11(5) of the Act, the High Court by its order dated 23.07.2004 appointed arbitrator indicating that the matter concerns accounts of the partnership firm M/s. Jodhpur Computer Services and that all objections as to the claim, jurisdiction shall be raised before the arbitrator. The claimant-Smt. Anita Chowdhary filed her claim before the sole arbitrator.

3. The claim was contested by the appellant on several grounds. Preliminary objections were raised, which were rejected by the arbitrator, where-after points for determination were framed, parties led evidence and the arbitrator after hearing the parties, concluded the hearing on 11.01.2009 and fixed 14.02.2009 for passing of the award. On 14.02.2009, it was indicated by the arbitrator that on 01.02.2009, he was informed by claimant that she wanted to file certain certified copies and, therefore, the award was not prepared. The claimant filed certain documents along-with application; the application was contested by the appellant; on 22.03.2009, the application was allowed on payment of cost of Rs. 1,000/-. The appellant (herein) was granted permission to file documents in rebuttal. Ultimately the final arguments were heard on 10.05.2009 and the award was passed on 24.05.2009.

4. The learned arbitrator came to the conclusion that in absence of account-books, the claim based on the balance-sheet was not justified and, thereafter went on to pass the following award:-

5. The sum of Rs. 5,54,355/- awarded pertained to Rs. 2,44,000/- towards Akhaliya Chauraha Extension Centre, Rs. 2,64,439/- towards Ratanada Extension Centre, Rs. 15,000/- towards Motor Cycle, Rs. 23,500/- towards security deposit and Rs. 7,416/-towards telephone charges.

6. Feeling aggrieved, the appellant filed application under Section 34 of the Act. Alongwith the application, certain documents were also filed.

7. The lower court after hearing the parties, came to the conclusion that on the grounds raised by the appellant, the award did not require any interference and, consequently, rejected the application.

8. It is submitted by learned counsel for the appellant that both the arbitrator as well as the lower court committed grave error in passing the award and rejecting the application filed by the appellant respectively. It was submitted that the arbitrator was appointed in respect of the accounts of the firm, specific reliefs were claimed in the claim raised before the arbitrator, to which, a response was filed and evidence was led by the parties. Where-after, though the claim as raised was rejected by the arbitrator, however, based on the documents, which were filed after the arguments were concluded and the award was reserved, the present award for a sum of Rs. 5,54,355/- has been passed, which is beyond the scope of the claim made by the respondent. Further submissions were made that once the final arguments were concluded and award was reserved, as there is no hiatus between reserving the award and its pronouncement, the oral prayer made on telephone by the claimant, could not have been entertained by the arbitrator, defer passing of the award and permit filing of certain documents, which documents have formed the basis for passing of the award. It was submitted that the award is beyond the scope of the submission to the arbitration and, therefore, the same was liable to be set aside.

9. Further submissions were made that once the arbitrator passed the award based on documents, which w

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