SITA RAM GIRI Vs. BADRI PRASAD RADHEY SHYAM

JUDGEMENT

(1.) THIS appeal Under Section 39 of the Arbitration Act has been preferred by the three Appellants, namely, Sita Ram Giri, Mahendra Bharti and Ramji Jaiswal, against the judgment of the Civil Judge, Allahabad dated 18 -3 -1981, dismissing the two objections -one filed by Appellant No. 1 and the other filed by Appellants 2 and 3 Under Section 30 of the Arbitration Act.

(2.) FOR deciding the controversy involved in this appeal, it is not necessary to mention the facts in its entirety. It may suffice to mention that the Appellants and Respondent No. 1 entered into a contract under which certain amount of money was advanced by Respondent No. 1. According to Respondent No. 1, at the time of loaning an agreement was executed between the parties. Clause 6 of the agreement in this case entitled one of the parties to refer the matter to the arbitrator on his own without taking consent of the other. The agreement provided that if the matter was referred to the arbitrator by one of the parties, the other party would be deemed to have consented to the same. It appears that Respondent No. 1 took the matter to the arbitrator on the basis of the aforesaid Clause 6 of the agreement. The arbitrator gave the award on 3 -2 -1976, and filed the same, thereafter, in the court. On 26 -2 -1977, the award was made a Rule of the court.

(3.) THE Appellant No. 1, thereafter, filed objection Under Section 30 of the Arbitration Act asserting inter alia that the award was initiated on account of the misconduct of the arbitrator. He also alleged that he was not given any notice by the arbitrator. Appellants 2 and 3 filed another objection Under Section 30 on the same ground.