SJP MOTORS Vs. TVS MOTOR COMPANY LTD

JUDGEMENT

(1.) The ambit of the power of the Civil Court under S.34(2)(iii) of the Arbitration and Conciliation Act, 1996 (for short, 'the Act') to set aside an ex parte Arbitral Award is the point arising for consideration in this appeal.

(2.) In terms of the agreement concededly executed between the appellant and the respondents, the latter initiated proceedings for appointment of the sole Arbitrator to thrash out the dispute that arose between them. Sensing that, the appellant instituted OS No. 444 of 2004 in the Court of the Subordinate Judge, Thiruvananthapuram on 20/08/2004 challenging the very arbitration clause itself. Respondents initiated arbitration proceedings by appointing the sole Arbitrator on 01/09/2004. The Arbitrator issued notice to both parties to appear before him. The appellant is stated to have sent a letter accompanied by a copy of the plaint in OS No. 444 of 2004 through his counsel, Advocate Shri Jagadeesh Kumar stating that he has already instituted OS No. 444 of 2004 questioning the legality of the arbitration clause in the agreement and hence he is not legally bound to appear before the Arbitrator. He requested the Arbitrator to stay all further proceedings. The appellant thereafter also did not appear before the Arbitrator. The Arbitrator passed Award holding the appellant liable to pay Rs.10,92,678.24 with interest at the rate of 22% per annum. The appellant preferred OP (Arb.) No. 25 of 2006 in the Court of the Prl. District Judge, Thiruvananthapuram to set aside the arbitral Award on the ground that he had no notice of the proceedings before the arbitrator. The learned District Judge vide the impugned order dated 06/03/2008 refused to interfere and confirmed the Award. That order is under challenge.

(3.) Heard the learned counsel for the appellant.