MADAN LAMBA Vs. JAGDISH LAMBA

JUDGEMENT

(1.) "Interminable, time consuming, complex and expensive court procedures impelled jurists to search for an alternative forum, less formal, more effective and speedy for resolution of disputes avoiding procedural clapfrap and this led them to Arbitration Act, 1940(Act' for short). However, the way in which the proceedings under the Act are conducted and without an exception challenged in Courts, has made lawyers laugh and legal philosophers weep. Experience shows and law reports bear ample testimony that the proceedings under the Act have become highly technical accompanied by unending prolixity, at every stage providing a legal trap to the unwary. Informal forum chosen by the parties for expeditious disposal of their disputes has by the decisions of the Courts been clothed with 'legalese' of unforeseeable complexity" so said the Supreme Court in the case of M/s. Guru Nanak Foundation Vs. M/s Rattan Singh & Sons AIR 1981 Supreme Court 2075.

(2.) Above observation of the Supreme Court aptly describe the disgust by the court for the widespread abuse of arbitral process. At the same time we cannot ignore the fact that the process and norms which create confidence in arbitration proceedings must be maintained by the Arbitrator. They have to conduct the proceedings in such a way which should depict fairness and impartiality.

(3.) Dr. Abhishek M. Singhvi, Senior Advocate appearing for the appellant has assailed the impugned judgment and consequently the arbitration award dated 25th October, 1996 made and published by Shri D.V. Taneja and Shri D.M. Harish, inter-alia, on the grounds that the Arbitrators were:-(i) Biased and misconducted the proceedings, (ii) they exceeded the scope of reference by adjudicating upon the properties, namely, (a) Hotel Diplomat at New Delhi and (b) Volga House, Mahslaxmi, Bombay which did not form part of the reference, (iii) they deliberately filed the award at Bombay, though knowing fully well that the jurisdiction was that of the Delhi High Court; and finally (iv) they did not sign the award simultaneously rather signed at two different places.