SWARAN ARORA Vs. SHYAM LAL JAIN

JUDGEMENT

(1.) These Objections (being I.A. No. 1696/96) have been filed against the Award dated 10.12.1995 whereby an amount of Rs. 9,81,000.00 together with interest at the rate of two per cent per month with effect from 2.6.1992 till the date of the Award was granted in favour of the Claimants and against Respondents 1 to 5. These Objections have been filed on behalf of Shri Shyam Lal Jain, who was respondent No. 1 before the Arbitrator. The Arbitrator had accepted the case of the Claimants that the Respondents had taken a friendly loan of Rs. 9,81,000.00 and had also signed the Arbitration Agreement dated 15.6.1993. In these Objections Shyam Lal Jain I.e. Respondent No. 1 in the arbitration proceedings has assailed the Award on a number of grounds. The following grounds were pressed at the time of arguments.

(2.) As regards the factum of the existence of Arbitration Agreement the Objections which are now being raised after the passing of the Award appear to be mala fide and without substance. The Objector could have approached the Court under Section 33 of the Arbitration Act, 1940 and challenged the existence or validity of the Arbitration Agreement. Having failed to do so the Award is now not open to challenge on this ground. Similarly the Court could also have been approached for the removal of the Arbitrator under Section 11 of the Arbitration Act, 1940. After the passing of the Award objections on these grounds should not be entertained. If the Objector had in fact been assaulted by the petitioner and if the Arbitrator had in any way acquiesced or ignored this assault this would have also been a sufficient ground to remove the Arbitrator and/or shift the venue of the arbitration proceedings. The Arbitration Agreement is in existence and apparently bears the signature of the Objector.

(3.) My attention has been drawn to exhibit CW-1/8 which is a letter addressed to the Arbitrator by the Objector. In this letter the Objector has stated that "whole of the amount together with interest occurred thereupon have been paid to Smt. Swaran Arora in the month of 18th and 29th December, 1994. She has given a receipt for having received the total amount from my brothers in the presence of her husband Sh. S.C. Arora. That receipt is duly written by hand and witness by the husband of Smt. Swaran Arora." Production of the said receipt would have put an end to the matter. But this receipt has not seen the light of the day, at least in the arbitration proceedings and before this Court.