KEDAR NATH Vs. AMBIKA PRASAD

JUDGEMENT

(1.) Ambika Prasad, the plaintiff-respondent in the present appeal filed a suit against the appellant and certain other respondents claiming a declaration that the arbitration award dtd. 18/8/1965 was illegal and invalid and for dissolution and rendition of ac counts of the firm Kedar Nath Kailash Nath. The defence of the appellant was that the suit was barred by the provi sions of Sec. 3 of the Arbitration Act, read with Rule 7 of the First Schedule as also by Sec. 32 of the same Act. Certain other pleas in defence were taken, but it is not relevant to mention them for the purposes of the present appeal.

(2.) The defence that the suit was barred in view of the provisions of the Arbitration Act was based on the fact that before the filing of the suit, a re ference of the dispute had been made to arbitrator and an award in favour of the defendant had been given on 18/8/1965. which had been subsequent ly registered and a copy thereof had been sent to each of the partners. The plaintiff under the award was to pay a sum of Rs.5, 764.0076 paise to the contesting defendant. No proceedings for set ting aside this award were taken by the plaintiff and as such it became binding qua the dispute between the parties and as such the present suit was miscon ceived. Issue No. 2 which ran as fol lows :-

(3.) The appeal is accordingly allow ed. The order of the 1st Additional Dis trict Judge allowing the appeal is modi fied to the extent that it will be permis sible for the appellant in the proceed ings taken consequence to remand to rely on the award as defence to the suit- In the circumstances, parties shall bear their own costs.