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2025 Supreme(Online)(Ker) 55469
IN THE HIGH COURT OF KERALA
MURALI PURUSHOTHAMAN, J.
Deepa Manoj v. Vaikom Thaluk Urban Welfare Co-Operative Society
Writ Petition No.1080/2024
For the Appellants/Petitioners: Not Specified
For the Respondents: Not Specified
The arbitrator has the authority to set aside an ex-parte award, and a petition to annul such an award must be considered by the arbitrator within a stipulated timeframe.
Headnote:In accordance with the governing arbitration laws, the petitioners sought to set aside the ex-parte award issued against them. The court found that the arbitrator possesses the authority to annul an ex-parte award. As the petitioners filed the application Ext.P2 to contest the award, the arbitrator must address the application and issue a decision within two months, allowing for the petitioners to be notified beforehand. The court temporarily deferred further coercive actions against the petitioners pending the resolution of their application.
| Table of Content |
|---|
| 1. petitioners' complaint regarding arbitration award. (Para 1) |
| 2. response from the respondent regarding hearings. (Para 2) |
| 3. authority of the arbitrator established. (Para 3) |
| 4. procedure for hearing and ruling on application. (Para 4) |
1. The 1st petitioner subscribed a Chitty for an amount of Rs.1,00,000/- with the 1st respondent Society. The 2nd petitioner is the surety in respect of the prized chitty. The 1st petitioner defaulted payments and the 1st respondent initiated Arbitration proceedings. Ext.P1 is the Arbitration Award in ARC No.1080/2024 dated 22.03.2024. The petitioners submitted Ext.P2 application before the 2nd respondent to set aside Ext.P1 ex - parte Award. The petitioners state that, pending Ext.P2 application, the 1st respondent Society is taking coercive actions against them for recovery of the amount covered by Ext.P1.
2. A counter affidavit has been filed by the 1st respondent wherein paragraph No.5 reads as follows:
"5. It is humbly submitted that the 1st petitioner never appear before the arbitrator. After the expartee order she submitted the ex - partee set siding petition. The two specific date and time (18.12.2024 at 10 a.m, 02.12.2024 at 2 p.m.), the arbitrator gave sufficient opportunity to rehear the petitioners. All the postings this respondent was present and petitioner became absent. All these facts are suppressed by the petitioner and rising lame excuses to delay the matter.”
3. This Court in Rema Devi and others v. Joint Registrar (General) of Co - operative Societies Ermakulam and another [2016 (3) KLT 50] has held that the Arbitrator has the power to set aside an ex - parte Award.
4. Since the petitioners have preferred Ext.P2 application to set aside the ex - parte award, the Arbitrator shall consider the same in accordance with law and pass appropriate orders within a period of two months from the date of receipt of a copy of this judgment. Before passing orders, the petitioners shall be put on notice of hearing. If the petitioners do not appear for hearing pursuant to the notice, it will be open to the Arbitrator to pass appropriate orders. Till such time orders are passed on Ext.P2, further coercive steps against the petitioners shall stand deferred.
