HIGH COURT OF ORISSA
PANIGRAHI,P.V.B.RAO, JJ.
Dharmu Saboto
Versus
Krushna Saboto
Misc. Appeals Nos. 20 and 21 of 1950
Decided On : 05-08-1955
ARBITRATION - AWARD - VALIDITY - JOINT DELIBERATION OF ALL ARBITRATORS - LEGAL MISCONDUCT - WAIVER OF OBJECTIONS - ARBITRATION ACT, 1940, S. 30.
Fact of the Case:
A private reference to arbitration was made by Dharmu Saboto and his three sons to five arbitrators to settle matters in dispute between them regarding the partition of the family property. The arbitrators passed an award after a full enquiry, which was challenged by Krushna Saboto, one of the sons, on the grounds of legal misconduct and the absence of joint deliberation by all the arbitrators during the proceedings.
Finding of the Court:
The court found that the award was vitiated by legal misconduct on the part of the arbitrators as they examined a witness, Somanath Samantara, suo motu without giving the parties an opportunity to cross-examine him. The court also held that the award was not the result of the joint deliberation of all the arbitrators as some of them were not present at all the sittings.
Issues: 1. Whether the award was vitiated by legal misconduct on the part of the arbitrators? 2. Whether the award was the result of the joint deliberation of all the arbitrators? 3. Whether the objections to the award were waived by the parties?
Ratio Decidendi: 1. The court held that the examination of Somanath Samantara by the arbitrators without giving the parties an opportunity to cross-examine him amounted to legal misconduct. 2. The court held that the award was not the result of the joint deliberation of all the arbitrators as some of them were not present at all the sittings. 3. The court held that the mere presence of the parties at subsequent sittings of the arbitration proceedings did not amount to a waiver of their objections to the award.
Final Decision: The court dismissed both the appeals filed by the appellants, upholding the decision of the lower court to set aside the award.
Judgement
P. V. B. RAO, J. :- These two miscellaneous appeals are directed against the orders of the learned Subordinate Judge of Berhampur in two Misc. Cases Nos. 23 of 1949 and 44 of 1949. Misc. Case No. 23 of 1949 arises out of an application filed on 28-3-49 by the five arbitrators to whom the matters in dispute between one Dharmu Saboto and his three sons Krushna Bauri and Dasrathi had been referred for decision under a Muchalika executed by the latter on 23-1-48 in which the opposite parties are the parties to the reference, namely, Dharmu Saboto and his three sons, along with the award passed by them, praying that action may be taken by the Court according to law.
2. After notice of the filing of the award was issued to the opposite parties, Krushna Saboto filed a petition under S. 30. Arbitration Act praying that the award should either be set aside as invalid or remitted to the arbitrators for reconsideration and rectification for the various reasons mentioned in the petition which was numbered as Misc. Case N. 44 of 1949.
Dasrathi Saboto filed a counter contending that the award was invalid and inoperative and should therefore be set aside. Dharmu Saboto and Bauri Saboto filed a counter contending that the objection raised to the award were not tenable and that therefore it should be upheld and a decree passed in terms thereof.
3. The learned Subordinate Judge held after enquiry that the award was vitiated by the legal misconduct of the arbitrators and as such it was invalid. He also held that the award was not the result of the joint deliberation of all the arbitrators as all of them were not present at all the sittings. He allowed Misc. Case No. 44 of 1949 filed by Krushna Saboto and dismissed Misc. Case No. 23 of 1949.
4. Dharmu Saboto and his three sons Krushna, Bauri and Dasarathi made a private reference to arbitration consisting of five arbitrators asking them to settle the matters in dispute between them with, regard to the partition of the family property by a Muchalika executed by them on 23-1-48.
In the application filed by the arbitrators, the arbitrators alleged that under the Muchalika they were empowered to divide all the properties of the parties to the reference and made an award on 19-1-49 after a full enquiry, and that the award was pronounced in 20-1-49 and was registered on 21-1-49.
5. Krushna Saboto raised various objections to the filing of the award, but we are concerned only with two objections as they were the only points raised before us by the learned counsel for the appellants. The first objection of Krushna Saboto was that all the five arbitrators were never present at any sitting and only some four of them were present and that consequently the award was not the result of the joint deliberation of all the arbitrators.
The second objection was of legal misconduct of the arbitrators inasmuch as they examined one Somanath Sanmatara of Ramchandrapur, a stranger to the arbitration proceedings and allowed themselves to be influenced by his advice and statements on certain particulars and refused permission to the parties to cross-examine him.
6. The learned subordinate Judge relying on the evidence of the arbitrator Bhagirathi Sahu held that all the arbitrators were not present at each sitting during the course of the arbitration proceedings.
7. With regard to the second objection in examining Somanath Samantara suo motu by the arbitrators without giving an opportunity to the parties to cross-examine him, the learned Subordinate Judge came to the conclusion that the omission by the arbitrators to give the parties the opportunity of cross-examining this witness did amount to legal misconduct.
8. Mr. K.S.R. Murty, the learned counsel for the appellants contends, firstly that the learned Subordinate Judge erred in holding that the award was illegal as all the arbitrators were not present at every stage of the proceedings inasmuch as the evidence adduced in the case and the award make it clear that the awar
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.