Allahbad High Court
J.SAHAI,S.CHANDRA
Union of India - Appellant
Versus
Usman - Respondent
Decided On : 02/12/1964
ARBITRATION - APPLICATION UNDER SECTIONS 8 AND 20, ARBITRATION ACT - LIMITATION - ARTICLE 181, INDIAN LIMITATION ACT - APPLICABILITY - REFERENCE TO CODE IN ARTICLE 181 - MEANING - SECTION 8, GENERAL CLAUSES ACT - INTERPRETATION.
Fact of the Case:
The plaintiff, Mohammad Usman, entered into a contract with the Union of India to supply meat to the Military Regiment. He alleged that he made the requisite supplies, but was not fully paid. He made several representations to the appellant for payment, as also for arbitration of the dispute by the General Officer Commanding in Chief, Headquarters, Eastern Command, Lucknow, who was the officer named in the contract as arbitrator to settle the differences arising between the parties under the arbitration clause of the contract. The plaintiff issued a notice under Section 80 C.P.C. and filed an application under Secs. 8 and 20, Arbitration Act, praying that the arbitration agreement be directed to be filed in court, and that an arbitrator be appointed for giving an award.
Finding of the Court:
The court held that the application under Sec. 20, Arbitration Act was barred by time under Art. 181, Indian Limitation Act. The court also held that the order of the court below in so far as it relates to proceedings under Sec. 20, Arbitration Act, 13 set aside and the petition in so far as it relates to Section 8, Arbitration Act, is dismissed.
Issues: 1. Whether an application under Sec. 20, Arbitration Act is governed by Art. 181, Indian Limitation Act? 2. Whether the reference to the Code in Article 181 includes the Arbitration Act, 1940?
Ratio Decidendi: 1. Yes, an application under Sec. 20, Arbitration Act is governed by Art. 181, Indian Limitation Act. 2. Yes, the reference to the Code in Article 181 includes the Arbitration Act, 1940.
Final Decision: Appeal partly allowed.
SATISH CHANDRA, J. : This is an appeal by the defendant, the Union of India. It is directed against an order of the learned Additional Civil Judge, Jhansi, granting an application under Sections 8 and 20, Arbitration Act.
2. Mohammad Usman, the plaintiff-respondent, on 8-3-1945 entered it to a contract with the Union of India to supply meat to the Military Regiment between 1-1-1945 and 31-3-1946. The plaintiff alleged that he made the requisite supplies, but was not fully paid. According to him, a sum of Rs. 8,38,994/10/6 was still payable to him by the Union of India. He made several representations to the appellant for payment, as also for arbitration of the dispute by the General Officer Commanding in Chief, Headquarters, Eastern Command, Lucknow, who was the officer named in the
contract as arbitrator to settle the differences arising between the parties under the arbitration clause of the contract. By his letter dated 10-7-1958, which was served on the plaintiff on 15-7-1958, the G.O.C. In Chief, Headquarters Eastern Command, Lucknow, informed the plaintiff that there was no valid reason for holding the arbitration in the case. The plaintiff on 20-4-1961 issued a notice under Section 80 C.P.C. and on 11-7-1961 filed in court, an application under Secs. 8 and 20, Arbitration Act, praying that the arbitration agreement be directed to be filed in court, and that an arbitrator be appointed for giving an award.
3. The application was contested on the grounds, inter alia, that the application was not maintainable in the name of the plaintiff, that it was barred by Sec. 69, Indian Partnership Act, that the notice under Sec. 80 C.P.C. was invalid, that the application was barred by Art. 181, Indian Limitation Act, and that the plaintiff had been paid in full for the supplies made by him and nothing was due.
4. The learned Additional Civil Judge by his Judgment dated 13-9-1963 repelled all the pleas and granted the application. Aggrieved, the Union of India has come to this Court in appeal under Section 39, Arbitration Act. The memorandum of appeal prays that the judgment of the court below be set aside and the application under Secs. 8 and 20 of the Arbitration Act be dismissed.
5. Section 8, Arbitration Act, 1940, provides for the appointment of an arbitrator by the court under the diverse contingencies mentioned in that section. Section 39, Arbitration Act, does not provide for an appeal against an order made under Sec. 8, Arbitration Act. Section 39 enumerates the various orders against which an appeal lies and it further provides that an appeal shall not He from any other order passed under this Act. It is apparent that no appeal lies against the order passed under Sec. 8, Arbitration Act; and the prayer in this appeal that the
application under Sec. 8, Arbitration Act, be dismissed cannot be granted. In so far as this appeal seeks to
challenge the order under Sec. 8, Arbitration Act, it is incompetent and la dismissed.
6. In respect of the order passed under Sec. 20, Arbitration Act, the learned Senior Standing Counsel appearing for the appellant, had urged only one point, that the application was barred by time under Art. 181, Indian Limitation Act.
7. Before considering this contention, we may dispose or a preliminary objection taken by Pt. Gopi Nath Kunzru for the respondent. He urged that as the Additional Civil Judge did not in terms direct the filing of the arbitration agreement, and inasmuch as Sec. 39(1)(iv), Arbitration Act, provides for an appeal from an order filing or refusing to file an arbitration agreement alone, the present appeal is not competent.
8. The learned Civil Judge held that the plaintiff had established a right to an order under Secs. 8 and 20, Arbitration Act, and that the application was within time. The learned Civil Judge further held that :
"In view of the above findings, I have no option but to hold that the plaintiff's application is entitled to be allowed and that the opposite party is liable
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