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1956 Supreme(All) 188

IN THE HIGH COURT OF ALLAHABAD
Agarwala, J.
RAM BHAROSEY - Appellant
Versus
PEAREY LAL - Respondents
Civil Revn. 1276 Of 1951
Decided On : 10/23/1956

Advocates Appeared:
Dulare Lal Misra, K.C.SAXENA

Headnote:

ARBITRATION ACT, 1940 - SECTION 14 - VALIDITY OF AWARD - NOTICE TO PARTIES - SERVICE OF NOTICE ON COUNSEL - EFFECT.

Fact of the Case:

The applicant challenged the validity of an arbitration award and the legality of the court proceedings in a suit for ejectment. The arbitrator failed to give notice to the parties of the making and signing of the award, and the court did not serve notice on the parties before passing a decree in terms of the award.

Finding of the Court:

The court held that the validity of the award did not depend on the notice of the same being given to the parties. The award was valid as it was duly made, signed, and filed in court. The omission of notice by the arbitrators under Clause (1) of Section 14 was immaterial.

Issues: 1. Whether the award was invalid due to the arbitrator's failure to give notice to the parties under Section 14(1) of the Arbitration Act? 2. Whether the court proceedings were illegal and irregular due to the lack of notice to the parties?

Ratio Decidendi: 1. Section 14(1) of the Arbitration Act applies to arbitrations in pending suits. However, the validity of an award does not depend on the notice of the same being given to the parties. An award is valid if it is duly made, signed, and filed in court. 2. Service of notice on the counsel of a party is considered service on the party himself, as per Order 3, Rule 5 of the Civil Procedure Code. Section 41(a) of the Arbitration Act makes the provisions of the Code of Civil Procedure applicable to all proceedings before the Court under the Arbitration Act.

Final Decision: The court dismissed the revision petition and upheld the validity of the award and the legality of the court proceedings.

AGARWALA, J.


( 1 ) THIS is an application in revision and arises in the following circumstances. The opposite parties Pearey Lal and another filed a suit for the ejectment of the defendant applicant from a shop.

( 2 ) THE trial court decreed the suit. The applicant filed an appeal in the lower appellate court. During the pendency of the appeal, the parties agreed to refer the matter in dispute to arbitration through the agency of the Court. The Court referred the dispute to an arbitrator on 10th April 1951. The arbitrator made an award and filed it in court on the 30th April 1951. The Court ordered the parties to file objections, if any, by the 30th May, 1951. On the 30th May, 1951 no objections were filed as no notice was actually issued to the parties. When the Court noted this fact, it adjourned the case and directed that notice-on respondent be issued by means of the service of a card, and as appears from the order-sheet, the signature of the counsel for the defendant-applicant was obtained there and then, on the margin of the ordersheet, thereby showing that the counsel for the applicant was informed of the order of the Court. 23rd July was fixed for dealing with the objections. No objections were filed on the 23rd July and the case was adjourned to 31st July, on which date the Court passed a decree in terms of the award. Against this order the applicant has come up to this Court in revision and two contentions have been raised on his behalf, " (1) that the award was invalid because the arbitrator did not give any notice to the parties as required by clause (1) of section 14 of the Arbitration Act, and (2) that the proceedings in the court below were illegal and irregular, inasmuch as the Court did not serve notice on the parties. It is contended that service of notice on the counsel of the applicant did not meet the requirement of Clause (2) of Section 14 of the Indian Arbitration Act.

( 3 ) SECTION 14 of the Arbitration Act runs as follows:-

" (1) When the arbitrators or umpire have made their award, they shall sign it and shall give notice in writing to the parties of the making and signing thereof and of the amount of fees and charges payable in respect of the arbitration and award. (2) The Arbitrators or umpire shall, at the request of any party to the arbitration agreement or any person claiming under such party or if, so directed by the Court and upon payment of the fees and charges due in respect of the arbitration and award and of the costs and charges of filing the award, cause the award or a signed copy of It, together with any depositions and documents which may have been taken and proved before them to be filed in Court, and the Court shall thereupon give notice to the parties of the filing of the award. "

( 4 ) ON behalf of the opposite parties it was urged that Clause (1) of Section 14 does not apply to an arbitration made through the agency of the Court. This contention does not appear to be correct as Section 25 of the Act lays down that the provisions of the other Chapters shall (including Chapter II , in which Section 14 appears) so far as they can be made applicable, be applied to arbitrations in suits. I, therefore, think that Clause (1) of Section 14 applies even to arbitrations in pending suits. But this does not dispose of the matter.

( 5 ) IT is true that in the present case the arbitrators did not give notice to the parties of the making and the signing of the award. But the arbitrators after making and signing the award filed it in court. The validity of the award dpest not depend upon the notice of the same being given to the parties. When an award is duly made, signed and filed in Court it is a valid document

( 6 ) IN Asad-ul-lah v. Muhammad Nur, ILR 27 All 459 (A) it was held that "for the making of an award it is enough that the arbitrators act together and finally make up their minds and express their decision in writing. This writing must be authenticated by their signatures. The award is thu









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