MANOHAR LAL Vs. VINESH ANAND

JUDGEMENT

(1.) Leave granted.

(2.) Since the decision in Thawardas's case (Thawardas Pherumal vs. Union of India, AIR 1955 SC 468) the issue of identifying the arbitrator, as a Court, did come up for consideration before this Court on more occasions than one. Thawardas (supra) negatived it with a positive finding that the arbitrator is not a 'Court' within the meaning of the Code of Civil Procedure. Since then there has however, been sea change of events: the repeal of the earlier statute of arbitration (Arbitration Act, 1940) and introduction of the new Arbitration Act, 1996 (Arbitration and Conciliation Act, 1996) in the statute book has brought about a major change in the sphere of arbitration. Based on uncitral model of law on International Commercial Arbitration and Conciliation Rules, the Act is stated to be best suited and to sub-serve the Indian conditions having regard to the economic conditions and the effect of globalisation of trade. Incidentally, the Statements of Objects and Reasons of the Arbitration and Conciliation Act records it to be an act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto. While the earlier enactment of 1940 was to be the most expeditious methodology of adjudication and disposal of disputes through arbitration but practicability of the situation lately produced a rather dismal picture and proved contrary to the normal belief and expectation that arbitration would be an otherwise expeditious method to do so. The uncitral model on the basis of which this Act of 1996 was engrafted in the statute book, in no uncertain terms recognises "party autonomy" philosophy and minimum interference from the Courts. In England also, similar such situation was the felt-need and resultantly in 1996, a similar enactment came into force but neither of the legislations however can be attributed to be an exact copy of the uncitral model though undoubtedly based thereon.

(3.) Having given a brief introduction to the recent legislation and adverting to the matter in issue presently, it would be worth noting that the issue involved though short but interesting enough to involve a useful debate on the same -- Debate, of course, we will avoid, but discussions we will indulge so that the law remains settled once for all on this issue as involved in the matter. The issue being applicability of the provisions of Section 340, Cr. P.Code in a proceeding before the arbitrator -- undoubtedly an ingenious effort but let us see as to how far the same succeeds.