IN THE HIGH COURT OF MADRAS
Walsh, J.
Savarala Venkatasubbiah
Versus
Kumara Ramiah
Decided On : 28.09.1934
arbitrators - award confirmation - Civil Procedure Code - Rule 15, Schedule 2 - revision permissible in cases of jurisdictional exceedance or material irregularity - arbitrators' misconduct in conducting proceedings - evidence improperly admitted vitiates award
Fact of the Case:
The plaintiff brought a suit against the defendant for various debts and paddy delivery. The matter was referred to arbitrators who awarded in favor of the plaintiff. The defendant objected to the award, citing misconduct by the arbitrators in handling crucial evidence.
Finding of the Court:
The court found that the arbitrators' conduct in handling crucial evidence was irregular and amounted to misconduct, vitiating the award.
Issues: The main issue was the validity of the arbitrators' award, specifically regarding the handling of crucial evidence and the conduct of the arbitrators.
Ratio Decidendi: The court held that revision is permissible in cases where arbitrators or the court exceed their jurisdiction or act with material irregularity. Improperly admitted evidence can vitiate the award.
Final Decision: The court set aside the award, allowed the petition with costs, and remanded the suit for disposal.
Walsh, J.
1. This revision petition is against an arbitrators award to which objection was made in the lower Court but which was confirmed the plaintiff in O.S. No. 35 of 1929 on the file of the Court of the District Munsif of Madanapalle brought a suit against the defendant on three items : (1) for 12 measures of paddy delivered by the plaintiff to the defendants brother in law, the defendant having promised to pay for the same ; (2) for a debt of Rs. 86-11-0 due by the defendant to the plaintiff in respect of tamarind and sugar candy trade with regard to which the defendant executed a letter dated 25th August 1927; and (3) for three measures of Koru paddy cultivated in the manyam land of the plaintiff. The matter was referred to arbitrators who awarded the full sum to the plaintiff. Objections to the award wore put in but were disallowed.
2. A preliminary objection has been raised that there is no power of revision in this Court in cases where the lower Court has confirmed the decision of the arbitrators and in support the well-known Privy Council case Ghulam Khan v. Muhammad Hassan (1902) 29 Cal. 167, is quoted. At first sight this seems to be a very strong case. The question of jurisdiction of the Court had been raised there as an issue but was referred with the rest of the suit to the arbitrators. The arbitrators having found wrongly on this point that the Court had jurisdiction, the Court accepted the award. It was held that as the arbitrators had jurisdiction to decide the law wrongly and the Court accepted the award, it could not be challenged in revision. But, if that case is looked into closely, it will be seen that the arbitrators action had not fallen under any of the clauses of Rule 15, Schedule 2, Civil P.C. Therefore the Court was bound to accept the award and did not act either without jurisdiction or with material irregularity in exercising its jurisdiction by doing so. This case has been considered in this connexion in Debir-ud-din v. Amina Bibi 1925 Cal. 475, where it was held.
it cannot be laid down as a general rule that in no case in which an award has been filed and decree passed in accordance therewith can the High Court interfere under Section 115, Civil P.C. Revision is permissible in cases in which the arbitrators or the Court may have exceeded theiri jurisdiction or acted with material irregularity in the conduct oil the proceedings,
3. Similarly it was held though the remark was obiter in Rajagopala v. Rangaswami 1916 Mad 969, with reference to the same:
There is no appeal against a decree based upon an award, but if it can be shown that the lower Court acted without jurisdiction or acted with material irregularity in dealing with the award, it would be open to the High Court on a proper case being made out to revise such an order.
4. A number of cases have been quoted before me in which the High Court has so interfered. One of them, Delhi Cloth & General Mills Co. v. Firm Kidari Pershad Chhedi Lal 1921 Lab. 396, is on its facts a close parallel to the present. There, an arbitrator received documents from one party and based his award upon those documents without giving the other party an opportunity of seeing those documents and of meeting the inference deducible therefrom. It was held that a revision, lies against a decree passed upon an award, where the Court which passed the decree has committed an error in procedure or has misused the jurisdiction. In R. Palavesam Chettiar v. Narayana Ayyar 1925 Mad 1086, it was held that arbitrators cannot import their own personal knowledge unless empowered to do so. That is exactly the view taken in Neba Ram v. Khota Ram 1928 Lab, 550. In Ram Chandar v. Hans Ram 1931 Lah 111, it was held where it appears from the award that the arbitrator in arriving at the decision was influenced by secret inquiry about the case made by him after recording the evidence and by the opinion of third persons about the merits of the case, his conduct amounts to judicial miscondu
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.