JOSE ANTAO RAUL CARVALHO Vs. CHANDRAKANT S RAJE

JUDGEMENT

(1.) This appeal filed under Section 39 of the Arbitration Act is directed against the order dated 6-11-1970 passed by Civil Judge S.D. Panaji, rejecting the application of the appellant filed under Section 30 of the Arbitration Act for setting aside the Award given by the umpire on 4-6-1970.

(2.) It will be necessary to state some introductory facts. The learned lower Court has in its Order set out the facts extensively and it is not necessary to re-capitulate them in full. Parties to the dispute had entered into a partnership agreement dated 1-11-1966 (annexure A of the plaint) to carry on the business of building and repairing Marine Crafts under the name and style of "Goa Marine Enterprises". Clause 17 of the partnership deed stipulated reference of any dispute touching the partnership for adjudication to five arbitrators, one appointed by each of the partners. According to this Clause the Arbitrators were required to appoint an umpire and it was agreed that the unanimous decision of the arbitrators or the decision of the umpire "when referred to by the arbitrators in case of disagreement between them" shall be binding on all the parties.

(3.) Recourse to Clause 17 had to be taken before long because serious disputes between the partners came to the surface. Respondents 1 and 2 therefore filed an application under Section 20 of the Arbitration Act for filing of the arbitration agreement and appointment of the arbitrators as per Clause 17 of the partnership deed. The Court after tearing parties passed an order dated 9-1-1969 directing that agreement be filed and parties to appoint arbitrators within 10 days. Names of the arbitrators were given by the parties and the Court by order dated 22-1-1969 directed that arbitrators would look into the difference between the parties and give their award within 3 months.