BANWARI LAL KOTIYA Vs. P C AGGARWAL

JUDGEMENT

(1.) THE Judgment of the court was delivered by -

(2.) THIS appeal by special leave is directed against the judgment and decree passed by the learned Single Judge of the Delhi High court on 18/07/1972 in F.A.O. No. 139-D of 1962 whereby a decree in terms of the Award passed by the trial court was set aside. Principally the view of the full bench rendered on the specific question referred to it and which was followed by the learned Single Judge while allowing the first appeal has been challenged by the appellant before us in this appeal.

(3.) IT appears that under these transactions a sum of Rs. 5,923.00 became due and payable by the respondent to the appellant but since the respondent raised a dispute and did not pay the claim the said <PG>258</PG> dispute was referred to the arbitration of two arbitrators Mr Prem Chand and Mr P.S. Khambete (both members of the Exchange) after following the procedure prescribed under the rules, regulations and bye-laws of the Exchange, the former being the nominee of the appellant and the latter being the appointee of the Exchange on the respondent's failure to nominate his arbitrator when called upon to do so. The arbitrators held their proceedings in which the respondent participated though he inter alia raised a contention that he was not a party to the reference and would not be bound by the Award that might be made on the basis of-such unilateral reference. After considering the entire evidence oral and documentary produced before them and after hearing the parties the arbitrators made their Award on 18/04/1961 whereby they allowed the claim of the appellant with costs against the respondent. The Award was filed in court and after notices of filing the Award were served, the respondent filed objections to the Award on several grounds such as denial of the existence of the agreement of reference, that he was not a member of the Exchange, that the Contract Notes had not been signed by him, that the arbitrators had misconducted themselves and the proceedings, that the Award had been improperly procured etc. The learned Sub-Judge, First Class, Delhi who heard the matter negatived all the objections raised for setting aside the Award; in particular he recorded the findings that the Contract Notes bore the signatures of the respondent and as such under the arbitration clause contained in each one of them read with the relevant bye-laws there was a valid agreement for reference to arbitration. Consequently, he made the Award a rule of the court and passed a decree in favour of the appellant on 7/09/1962.