LAWS(KAR)-2017-4-77

BASAI STEELS PRIVATE LIMITED, PARVATHI NAGAR, BALLARI Vs. GOBINS INDIA ENGINEERING PRIVATE LIMITED, VIDYANAGAR, BALLARI AND ANOTHER

Decided On April 25, 2017
Basai Steels Private Limited, Parvathi Nagar, Ballari Appellant
V/S
Gobins India Engineering Private Limited, Vidyanagar, Ballari And Another Respondents

JUDGEMENT

(1.) MFA No. 101307 of 2015 (AA) has been filed by the appellant therein under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act', for brevity), seeking setting aside of the judgment and award dated 5-1-2015 passed by the Court of Principal District and Sessions Judge, Ballari, in Arbitration Appeal No. 6 of 2014, confirming the award dated 14-12-2013 passed by the Sole Arbitrator-respondent 2 in A.C.A.C.P.(GOBINS) No. 1 of 2013.

(2.) MFA Crob. No. 100134 of 2015 has been filed by the respondent 1 in MFA No. 101307 of 2015 under Order 41, Rule 22 of the Code of Civil Procedure, 1908 read with Sec. 37 of the Act, seeking modification of the judgment and award dated 5-1-2015 passed by the Principal District Judge, Ballari, in Arbitration Appeal No. 6 of 2014.

(3.) The appellant in MFA No. 101307 of 2015 in its memorandum of appeal has taken a contention that, it was not effectively represented in the Arbitration proceedings. The Arbitrator entered into reference nearly four years after his appointment. The claim of the respondent therein is barred by limitation. The letter appointing the Arbitrator and the letter of consent by the Arbitrator are created documents. The appellant has further stated that the immediate Court below did not notice the fact that the award passed by the Arbitrator was an ex parte award and the same was against the principles of natural justice. The orders of both the Courts below are also not sustainable as the appellant-Company has been registered as a Sick Industrial Company with the BIFR, New Delhi. However, the said fact was not brought before the Court below due to oversight.