SAHAGIR AHMAD Vs. ISRAIL MIA

JUDGEMENT

(1.) THIS application in revision is directed against an order dismissing an application filed by the petitioners under section 14 of the Arbitration Act, 1940 (hereinafter called 'the Act').

(2.) IT appears that the petitioners filed an application under section 14 (2) of the Act alleging that the dispute between the parties had been referred to arbitration, that the Arbitrators had given their award, that the petitioners had requested the Arbitrators to file the award in court but they were not paying any heed to that request and for that reason they should be asked to file the award in court and that the same may be made a rule of the court. This was registered as a title suit. In pursuance thereof notices were issued to the Arbitrators and the other party concerned. The Arbitrators appeared and filed the award and prayed for a decree on its basis. The other party to the dispute appeared and filed written statement denying any agreement to refer to arbitration, denying the genuineness of the award, questioning the proceeding and praying for setting aside the award. Thereafter it appears that issues were framed. For some reason or the other the hearing of the matter was not taken up for long. IT was, however, fixed for 12th September, 1972. On that date the petitioners (plaintiffs) were absent. The learned Munsif dismissed the suit for default.

(3.) NOTICING the scheme of the Act briefly, it appears that Chapter I thereof is introductory and Chapter : II deals with arbitration without intervention of a court, sections 3 to 12 contained therein relate to various matters with which we are not concerned in the present case. Section 13 details the powers of Arbitrators and, inter alia, it gives the Arbitrators the power to state a special case for the opinion of the court on any question of law involved. Section 14 prescribes that when the Arbitrators have made their award they shall give notice in writing to the parties of the making thereof. Thereafter, in view of subsection (2) thereof the Arbitrators at the request of any party to the agreement or any person claiming under such party, or if so directed by the court, cause the award to be filed in court. The court has then to give notice to the parties of the filing of the award. Sub-section (3) of section 14 provides for giving notice to the parties and hearing of the matter relating to the special case referred by the Arbitrators under section 13. Section 15 provides the court the power to modify the award in circumstances mentioned therein. Section 16 gives power to the court to remit the award to the Arbitrators for reconsideration in the cases mentioned therein. Then conies section 17 which provides for pronouncing a judgment in terms of the award if the award is not remitted for reconsideration or set aside. Section 18 enables the court to pass interim orders and section 19 contains the power to supersede a reference and order that the arbitration agreement shall cease to have effect. Then comes Chapter III which contains just one section, namely section 20. This Chapter is devoted to arbitration with intervention of a court where there is no suit pending. According to this section, a party to an agreement may apply to a court having jurisdiction in the matter, that the agreement be filed in court. Such an application is to be in writing and to be numbered and registered as a suit. Notice of such application is to be given to the parties concerned and where no sufficient cause is shown the court is to order the agreement to be filed and make an order of reference to the Arbitrator appointed by the parties or where the parties cannot agree, to an Arbitrator appointed by the court. Under sub-section (5) the arbitration is to proceed and is to be governed by other provisions of the Code so far as they can be made applicable. Then comes Chapter IV which contains provisions in respect of arbitration in suits. According to them, where there is a suit pending and there is an agreement to refer the matter to arbitration, a written application is to be made to the court, Arbitrators arc to be appointed, and the matter is referred to Arbitrators. This chapter contains sections 21 to 25. Under section 25 the provisions of the other chapters have been made applicable to arbitrations under this chapter. Chapter V contains general provisions which are applicable to all arbitrations. Sections 26 to 38 occur in this chapter. 1 will mention only the important provisions of this chapter which may be relevant to the discussion of the point at issue. Section 30 provides for grounds for setting aside of an award. Section 31 refers to the jurisdiction of a court. It provides that an award may be filed in any court having jurisdiction in the matter to which the reference relates. All questions regarding the validity, effect or existence of an award or an arbitration agreement between the parties shall be decided by a court in which the award under the agreement has been or may be filed and by no other court. All applications regarding the conduct of arbitration proceedings or otherwise arising out of such proceedings are to be made to the court where the award has been or may be filed and to no other court. It further provides that notwithstanding anything contained elsewhere in the Act or in any other law for the time being in force, where in any reference any application under this Act has been made in a court competent to entertain it, that court alone shall have jurisdiction over the arbitration proceedings and all subsequent applications arising out of that reference and the arbitration proceedings shall be made in that court and in no other court. Section 32 provides that no suit shall lie on any ground whatsoever for a decision upon the existence, effect or validity of an arbitration agreement or award ; nor shall any arbitration agreement or award be inforced, set aside, amended, modified or in any way affect otherwise than as provided in this case. Section 37 provides for the law of limitation. Next comes Chapter VI of the Act providing for appsats under section 39. Chapter VII contains miscellaneous provisions and contains sections 40 to 48. The most important section thereof, section 41, inter alia, provides that subject to the provisions of this Act and all rules made thereunder the provisions of the Code shall apply to all proceedings before the court, and to all appeals under this Act. Then there are two schedules appended to the Act, the first one containing implied conditions of arbitration agreements and the second containing the powers of the court.