UNION OF INDIA Vs. ABBOTTS AND COMPANY

JUDGEMENT

(1.) UNION of India has filed the present revision and it has been directed against the judgment dated 15.1.1999 passed by Additional District Judge, Jalandhar, who dismissed the appeal of Union of India by affirming the order dated 24.7.1996 passed by Additional Civil Judge (Senior Division), Jalandhar, who allowed the objections of M/s. Abbotts and Company and set aside the award dated 10.6.1988.

(2.) SOME facts can be noticed in the following manner :- There was an arbitration clause in the agreement entered into between the petitioner and the respondent-Company. The matter was referred to the arbitrator in accordance with the agreed condition of the agreement. The arbitrator gave the award on 10.6.1988 in favour of Union of India. The Company filed the objections that Union of India has illegally and unilaterally made the reference to the arbitrator and in these circumstances the reference is not valid. It was also the objection of the Company that the award has been made after four months of entering upon the reference.

(3.) BOTH the parties led evidence before the trial Court and vide order dated 24.7.1996 the learned Additional Civil Judge (Senior Division), Jalandhar allowed the objections and set aside the award. The reasons of allowing the objections are contained in para Nos. 6 and 7 of the order which read as under :-