A fresh notice is essential to initiate new arbitral proceedings after an award has been found unenforceable.

O R D E R

The applicant is a company providing services of technical support, practical assistance and funding assistance to its members for agricultural and non-agricultural purposes. The 1^st respondent is a member of the company. He joined in a mutual benefit fund scheme of the company and received an amount of Rs.3,62,500/-. An agreement was executed on 05.01.2017. A copy of the agreement has been produced as Annexure A2. Since there was default in repayment, the applicant invoked the arbitration clause in Annexure A2. Annexure A4 award was passed on 03.09.2018. E.P.No.191 of 2022 was filed to execute Annexure A4 order. By order dated 21.09.2023, the execution court dismissed the E.P holding that the award was unenforceable since the appointment of Arbitrator was unilateral. Thereafter, this Arbitration request was filed to initiate fresh arbitral proceedings.

2. In M/s.Agro Indus Credits Limited v.

Mangalan [2026 (1) KLT 1] , this Court has held that once an award is set aside, to initiate fresh arbitral proceedings, issuing a fresh notice is essential. In the case at hand, the award was found unenforceable by the execution court. In such circumstances also, issuing a fresh notice to initiate arbitral proceedings is necessary.

Therefore this arbitration request is premature. It is accordingly closed. However I make it clear that it will be open to the applicant to issue fresh notice under Section 21 of the Arbitration and Conciliation Act to the respondents and to approach this Court again, if found necessary.

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