MAHENDRASINHJI ZORAVARSINHJI SANDHU Vs. KAMAL B DEVAL

JUDGEMENT

(1.) This appeal is directed against the order dated 15th June, 1996 passed by the Civil Judge, Senior Division, Kachchh at Bhuj in Special Civil Suit No. 33 of 1983."

(2.) The brief facts giving rise to this appeal are as under : The appellant and respondent No. 1 were managing the business of M/s. Devpal Hydrocarbons and Devpal Hydro Agencies for and on behalf of sole proprietor Suit. Prakashkunvarba respondent No. 2 herein who was an authorised agent for Indane Gas at Bhuj-Kachchh. A dispute arose between the appellant and respondent No. 1 and an arbitration agreement was entered into on 1st October, 1982 between the present appellant and respondent No. 1, respondent No. 1 being the first part and the appellant being the second part. The dispute between the parties was in respect of the mutual dealings for the period 1973-74 to 31st October, 1982 with regard to the business carried on as above to settle the goodwill and to settle the accounts for the period 1973-74 to 31st October, 1982, to verify the stock and cash at hand, to fix the present market value of the assets as well as goodwill for the same, and to ask one of the parties to give a bid for the business and to ask the other to make a choice to purchase or to sell the business at their bid. On this arbitration agreement entered into between the parties on 1st October, 1982 the signatures of both the parties were appended and the signatures of two witnesses were also appended thereon. As per this arbitration agreement, one Shri Pushpadan S. Gadhvi, Advocate was appointed as the sole Arbitrator with the agreement of both the sides. The sole Arbitrator Shri Gadhvi passed the award on 11th March, 1983 on which the present appellant, Smt. Prakashkunvarba, i.e. respondent No. 2, one Shri K. S. Ujwal and Shri Z. N. Sandhu appended their signatures. It was given out that the appellant as well as respondent No. 1 were the Power of Attorney holders of respondent No. 2 and there is no dispute about the factual position that the present appellant is the maternal nephew (Bhanja) of respondent No. 2-Smt. Prakashkunvarba whereas respondent No. 1 is her son. It may also be noted that while the matter was pending before the Arbitrator, an order was passed on Exh. 46 for joining M/s. Devpal Hydro Agency and four persons alleged to be partners of the firm to be parties to the proceedings and that order was made a subject-matter of challenge in revision before this Court by way of Civil Revision Application No. 622 of 1987 and this revision application filed by the present appellant was allowed on 16th February, 1993 and the impugned order was set aside by this Court. After the award was passed on llth March, 1983 as aforesaid, the appellant No. 1 filed Special Civil Suit No. 33 of 1983 before the Civil Judge, Senior Division, Kachchh at Bhuj, for making the award the Rule of the Court. The said suit was dismissed by the Civil Judge on 15th June, 1996. Aggrieved from this judgment and order dated 15th June, 1996, the present appeal has been filed.

(3.) Learned Counsel for the appellant has argued that the arbitration agreement had been entered into between the appellant and the respondent No. 1 and the appellant as well as the respondent No. 1 were the Power of Attorney holders on behalf of the respondent No. 2. His submission is that once the parties had agreed for arbitration, they appeared before the Arbitrator and the Arbitrator has passed the award, the same is binding upon both the parties. The Court was approached for making it Rule of the Court only for the purpose of the effective execution of the award. The trial Court has committed a serious error in dismissing the Civil Suit by saying that the award was uncertain and ambiguous. Learned Counsel for the appellant has submitted that the award could be set aside only if any of the grounds under Sec. 30 existed. Section 30 is reproduced as under : "30. Grounds for setting aside award. :- An award shall not be set aside except on one or more of the following grounds, namely :-