SUBHASH AGGARWAL AGENCY Vs. BHILWARA SYNTHETICS LIMITED

JUDGEMENT

(1.) JUDGMENT -

(2.) M/s. Subhash Aggarwal Agencies (hereinafter called the petitioner) claimed certain amounts from the respondent M/s. Bhilwara Synthetics Limited and others (hereinafter called the-respondents) on account of commission payable to the petitioner. The petitioner referred the disputes for the decision of Delhi Hindustani Mercantile Association (hereinafter called the Association) in accordance with the Rules and Regulations of the Association. The Association appointed Sh. Mohan Lal as the sole arbitrator to go into the disputes between the parties. The arbitrator entered upon the reference in September 1979 and directed that notice be issued to the parties for 4.9.1979. The respondents took up the plea that he was no longer a member of the Association and therefore the Rules and Regulations of the Association did not apply to it, and as such the Arbitrator had no jurisdiction to proceed with the case. The respondents filed a petition under Section 33 read with Section 5 of the Arbitration Act (being O.M.P. 142/1979) in this court challenging the authority of the Arbitrator to proceed with the matter. The petition was dismissed by order dated 28.2.1980 with liberty to the respondents to take all points urged in the O.M.P. before the Arbitrator. Thereafter the respondents moved another petition being O.M.P. 37/1980 for revocation of the authority of the Arbitrator on the ground of bias. This petition was dismissed on 20.11.1981 subject to the direction that the arbitrator should hear reference afresh after giving reasonable opportunity to the respondents and should make a reasoned award. Thereafter the respondent moved an application before the Arbitrator for setting aside thr exprate proceedings. The request of the respondent was allowed and fhc respondent participated in the arbitration proceedings. The Arbitrator made an award on 19.71983 and gave notice to the parties. On 16.8.1983 the petitioner filed a petition in this court under Section 14 of the Arbitration Act (i.e. No. 1243-A/1983) seeking directions to the arbitrator to file the award as well as arbitration proceedings in court.

(3.) THE award of the Appellate Tribunal is the final award which has to be filed and made a rule of the Court. I have perused the award published by the Appellate Tribunal. No reasons have been given at all. Only the conclusion has been stated. THE award does not indicate as to how the arbitrators have arrived at the conclusion. THE award of the Appellate Tribunal is directly in conflict with the direction given by this Court by order dated 20.11.1981 which specifically provided that the arbitrator should make a reasoned award. No reasons whatsoever have been assigned. This is the final award. It should have contained the reasons. Thus it cannot be legally sustained and has to be set aside. THE issue is decided in favour of the respondent.