SYDNEY APPARELS Vs. M/S ALAGAN AND CO

JUDGEMENT

(1.) THE short question that has been raised in the present appeal is in respect of validity or otherwise of an arbitration agreement, which is said to have been entered into between the appellant and the respondent on the 10th March, 1993.

(2.) BASED on the arbitration agreement, respondent filed in this court O.P. No. 196 of 1998 for making a reference of the disputes to arbitration. The said O.P. was heard and decided by the learned single Judge who, by his judgment and order dated 8th April, 1999, has referred the arbitral disputes to Mr. Justice K.M. Natarajan, a retired Judge of this Court.

(3.) THE provisions of Sec. 33 of the 1940 Act provides as under: Arbitration agreement or award to be contested by application - Any party to an arbitration or of any person claiming under him desiring to challenge the existence or validity of an arbitration agreement or an award or to have the effect of either determined shall apply to the Court, and the Court shall decide the question of affidavits: Provided that where the Court deems it just and expedient, it may set down the application for hearing on other evidence also, and it may pass such orders for discovery and particulars as it may do in a suit? THE aforesaid provisions of Sec. 33 in the 1940 Act therefore confers jurisdiction upon the Court to give its finding as to the existence or the validity or otherwise of an arbitral agreement where a party to the proceedings raises a challenge in regard to the same. THE said provision is now conspicuously absent in the 1996 Act.