EASTERN GASES LTD. Vs. USHA MARTIN LTD.

JUDGEMENT

(1.) The Court: This is an application in the nature of Section 47 of the Code of Civil Procedure. The application is filed on the assumption that an award passed under the Arbitration and Conciliation Act, 1996 is treated to be a deemed decree. The judgment debtor has filed an application for setting aside of the award. The judgment debtor did not comply with the order passed by a Coordinate Bench for securing a sum of Rs.25 lacs within the period specified in the said order. By reason of default, the said award was put into execution. The learned Counsel appearing on behalf of the applicant judgment debtors submits that in view of the fact that this application has been filed, the Coordinate Bench has not entertained the prayer for accepting the security tendered belatedly.

(2.) In this application it is argued on behalf of the judgment debtor that the procedure contemplated under the Act has not been followed inasmuch as the Arbitrator has not adjudicated the claim and has delegated his power to a chartered accountant. The mere acceptance of the amount quantified by the chartered accountant is not an adjudication on merits of the claim inasmuch as the Arbitrator cannot delegates its power to the chartered accountant.

(3.) The learned Counsel has referred to a Division Bench judgment of our Court in 'Juggobundhu Saha versus Chand Mohan Saha, (1916) AIR Calcutta 806' and a decision of the Hon'ble Supreme Court in 'Mcdermott International Inc. versus Burn Standard Co. Ltd. & Ors., (2006) 11 SCC 181' for the proposition that the Arbitrator is not authorized to delegate its power and function and any departure from the agreed procedure would make the said award null and void.