ASHOK Vs. K K SAXENA

JUDGEMENT

(1.) THIS appeal under section 39 of the Indian Arbitration act, 1940 (for short "the Act") has been filed by the appellants, against the order dated 18-2-1991 passed by the Third Additional District Judge Vidisha in M. J. C. No. 2/88, by which the trial Court rejected the application for making the award rule of the Court, filed under section 16 of the Act and held that the award dated 8-3-1982 was ineffective and void.

(2.) IT is submitted by the learned counsel for the appellants that with the consent of the parties vide agreement dated 29-5-1980 the matter was referred to the arbitrators and they enters upon the reference on 29-7-1980, completed the arbitration proceedings and passed the award on 8-3-1982. The respondents even after expiry of four months period that is, the period prescribed for giving the award, appeared before them, took part in the proceedings before the Arbitrators and never raised any objection to the arbitration proceedings and only when an application under section 16 of the Act for making the award Rule of the Court was filed, they raised an objection and in such a situation the condition of four months period will be deemed to have been waived. Learned trial Court contrary to the decision of the Apex Court in the case of State of Punjab vs. Hardyal, AIR 1985 SC 920 passed the impugned order declaring the award as null and void. It is further submitted that on 10-1-1996 they filed an application to enlarge time for making the award.

(3.) ON the other hand Shri K. N. Gupta, learned Senior Counsel for the respondents opposed the arguments of the learned counsel for the appellants and submitted that in view of the law laid down by the Apex Court in the case of state of Punjab vs. Hardyal (supra) and Division Bench decision of this Court in misc. Appeal No. 72/86, M/s Jiyajirao Cotton Mills Ltd. Birlanagar vs. M/s jindal Handloom Emporium and others decided on 18-10-1996 the Trial Court has not committed any error in passing the impugned order and dismissing the application filed under section 16 of the Act by holding that the award after the expiry of four months is null and void.