ICDS LIMITED Vs. BHASKARAN PILLAI

JUDGEMENT

(1.) Heard the learned counsel for the appellant and learned counsel for the respondent Nos.1 and 2.

(2.) The factual matrix of the case of the appellant herein before the Arbitrator is that the appellant herein has forwarded the claim petition dtd. 23/6/1999 with File No.AE-514 with connected documents to Sri B. Yogishwara Holla, Advocate, Udupi, with request to hold enquiry and to pass the award. The dispute was in connection with the Hire Purchase Agreement dtd. 27/8/1997 entered into between the parties i.e., appellant as owner, respondent No.1 as hirer and respondent No.2 as guarantor. The claim was for Rs.3,02,350.00. As the said Hire Purchase Agreement shows that the parties had agreed for arbitration of said Sri B. Yogishwara Holla, he entered reference on 20/7/1999 and conducted proceedings up to 15/5/2005. The Arbitrator also submits that due to age factors of earlier Arbitrator, the papers were entrusted to him on 8/7/2005 with a request to continue the enquiry, as the earlier Arbitrator Sri B. Yogishwara Holla is not inclined to continue on account of his old age and ill-health. The Hire Purchase Agreement at Clause No.VII(a) provides that the parties had agreed for arbitration also (in case of failure on the part of Sri B. Yogishwara Holla). So, he entered on the reference on 8/7/2005 and issued notices to the parties and also to their advocates. There was no objection by any of the parties to the notice and has maintained a separate order sheet with effect from 8/7/2005 and continued to enquire into the matter, since the earlier Arbitrator had already conducted proceedings, framed issues, recorded the evidence of appellant and the respondents. The only work that remained was to hear the arguments and to pass the award. The respective parties represented through their respective counsels. The Arbitrator having heard the respective counsels, allowed the arbitration claim and directed the respondents to pay an amount of Rs.3,06,750.00.

(3.) Being aggrieved by the said award, arbitration suit was filed which is numbered as Arbitration Suit No.18 of 2006. Having perused the claim and also the grounds urged in the said arbitration suit filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 and also on the basis of the pleadings, the following issues and additional issues are framed which reads as hereunder: