The term "entering upon reference" in the context of arbitration means an effective step taken by the arbitrator to progress the arbitration proceedings, such as calling upon the parties to appear or intimating them of proposed exparte action.

1. When an arbitrator is deemed to have entered on the reference" within the meaning of para 3 of Schedule 1 of the Arbitration Act? is an important question of law to be decided in this petition.

2. The aforesaid para provides that the arbitrator shall make their award within four months after entering upon the reference or after having been called upon to act by notice in writing by any party to the arbitration agreement or within such extended time as the Court may allow. The point was first considered in the Queens Bench case entitled Baker V. Stephens- (1867) 2 Q B 523-wherein Blackburn j. Held:

Now, the first contest on behalf of the defendant was, that "entered on the reference" must mean having accepted the office, and if that were the meaning, then, in the present case, the arbitrators being willing to proceed in July, they would have then accepted the office and entered on the reference, and the award would have been made too late. But, 1 think the words "or shall have been called upon to act," shows this, for that implies that the arbitrator has already accepted the office; it is plain, therefore, as it seems to me, that entering upon the reference means something else than merely accepting the office. Then if it does not mean merely accepting the office, what does it mean? It is quite possible to construe the phrase so as to suited the defendants, case. Here the arbitrators gave a notice of their intention to proceed peremptorily; and no doubt this was, so for, a step in the reference, and gave them a right to proceed and decide exparte if both parties did not appear; and it is something like the issuing of a writ; therefore, it might be said that the arbitrators entered on the reference on the 5th of October, in which case, also the award would be out of time.

But the words "entering on the reference" may also bear the meaning of beginning to hear the parties; and it is very reasonable and proper that time should be given for preparation before proceeding with the reference; frequently, also, a good deal of time is lost before the actual commencement of the business of the reference; and it might very well be that the whole three months might elapse before this, when the parties, or one of them, are unwilling to go on. And on the whole I think the latter is the true construction of the section;.........

In the same case Mellor, J. held:

....."entering on the reference means something more than giving notice, especially when the arbitrator is to re-enter upon the matter; and that until the parties are before him, or until he proceeds exparte, he has not entered on the reference; and that the mere giving notice that he will enter on the reference with both parties before him, or will proceed exparte, is not entering on the reference."

Shee J. observed that the object of the section was to limit the time for making an award in cases in which the parties have not by the agreement or order set any time and the statutory period must be taken first in the sence of the original appointment and secondly in the sence of reference back. "Enter on the reference" was held to mean the beginning of the real business of reference by holding a meetings of the parties or proceeding under a peremptory appointment exparte However, in Iossoifoglu V. Coumantoros (1941) I KB 396 a different view was taken and it was held that the arbitrators enter upon a reference as soon as they have accepted their appointment and have communicated with each other about the reference.

3. In Nand Kishore GoswamiV. Balli Co-operative Credit Society Ltd. -AIR 1943 Cal. 255, it was held:

"......It does without saying that an arbitrator cannot be said to enter on the reference the moment that he is appointed an arbitrator. It is necessary that he must actually begin the work in the presence, of the parties or with notice to them before he can be said to have entered on the reference¦."

The Allahabad high Court in Firm Sardarmal Hardatt Rai V. Firm Sheo Baksh R

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