CHHABRIYA CLOTH STORES Vs. KAMAL SYNTHETICS, BOMBAY

JUDGEMENT

(1.) The First Appeal filed under Sec. 39(1) (iv) of the Arbitration Act, 1940 [for short, "the Arbitration Act"] challenges the impugned judgment dtd. 25/8/1995 passed by the Bombay City Civil Court in Arbitration Petition No. 81 of 1995, dismissing the objection to the Award and making the Arbitration Award rule of the Court under Sec. 17 of Arbitration Act.

(2.) Award No. 168 of 1994 was passed in favor of Respondent for sum of Rs.35,770.10, which was filed in the Court under Sec. 14 of Arbitration Act. The Appellant challenged the Award by filing Arbitration Petition No. 81 of 1995 under Sec. 30 and Sec. 33 of Arbitration Act, which was dismissed and Award was made rule of the Court, which is impugned in the present Appeal.

(3.) The dispute arose between the parties out of alleged claim for payment of the goods supplied by Respondent to Appellant. The Respondent invoked the arbitration clause in the invoice which provided for the dispute to be subject to the Arbitration Rules of Bharat Merchants' Chamber. The Respondent approached Bharat Merchants' Chamber and appointed one Mr. Anil Agrawal from the panel of arbitrators of Bharat Merchants' Chamber vide letter dtd. 28/3/1994. On 29/3/1994, Bharat Merchants' Chamber called upon the Appellant to appoint its arbitrator from the panel of arbitrators. In response, Appellant vide communication dtd. 7/4/1994 declined to appoint Arbitrator and refused to participate in arbitration proceedings. Bharat Merchants' Chamber appointed an Arbitrator for the Appellant and proceeded with arbitration. The Appellant did not participate in the arbitration proceedings and Award came to be passed in favor of Respondent.