NARAYAN PRASAD LOHIA Vs. NIKUNJ KUMAR LOHIA

JUDGEMENT

(1.) This appeal is directed against the Judgment and Order dated 17th November 1998 passed by the learned single Judge of this Court in A.P. No.53 of 1998 whereby the application filed by the Respondents for setting aside the award was allowed and the award was set aside by the learned single Judge. The Respondents in the application for setting aside the Award had sought a declaration that the arbitral award made and published by the two Arbitrators was void and invalid, unenforceable and not binding on the parties and had accordingly sought the relief of setting aside of the said award and for passing of the consequential orders. The award in question appears to have been passed by the Arbitrators, Sri S. S. Jain and Sri P. K. Khaitan. It appears to have been passed on 6th October, 1996. How did the Arbitrators come to be appointed in the very first place, whether there was in existence any arbitration agreement providing for their appointment, and whether any reference had been made to the Arbitrators of the disputes and differences between the parties are all matters which themselves are not free from controversies, doubts, disputes and differences. Since we propose to dispose of this appeal on two pure questions of law, we need not dilate on these disputed questions except to briefly refer the circumstances under which the aforesaid two persons ultimately came to pass the aforesaid Award dated 6th October, 1996.

(2.) It appears that a Memorandum of understanding was executed between the parties on 24th June, 1996 whereby Sri S. S. Jain was nominated as the person to resolve the disputes and differences between the parties for his mediation and settlement by way of arrangement, not being an award of an Arbitrator, but having binding effect as such morally or otherwise on all parties. This part of the agreement is reproduced as under :

(3.) In the same agreement the parties are supposed to have agreed that in case of any dispute or difference relating to any term etc. the same would be referred to Sri S. S. Jain whose decision shall be binding and final on all concerned. This is contained in the following part of the agreement which reads thus :