CHACKO Vs. CHACKO

JUDGEMENT

(1.) This revision raises the question as to whether the provision in Para.2 of the First Schedule to the Indian Arbitration Act X of 1940 (hereinafter called the Act) is mandatory or merely directory, in character. In view to its importance it was referred by one of us before whom it came on in the first instance, to a Division Bench.

(2.) The petitioner and the 1st respondent by agreement dated 19-5-1954, referred their differences in the matter of the settlement of their partnership accounts, to two arbitrators viz., respondents 2 and 3. The arbitration agreement did not, within the meaning of S.3 of the Act exclude the applicability of the First Schedule to the Act, Para.2 of which provided:

(3.) The corresponding provision in the repealed Arbitration Act of 1899 (Indian) ran as follows:-