RAMANAND Vs. BHARAT FINANCE CO PVT LTD

JUDGEMENT

(1.) THIS is an application against an order of the Sub -judge Jammu dated 28 -11 -72 rejecting the application filed by the petitioner under S. 33 of the Arbitration Act for declaring the award to be void ab -initio on various grounds. One of the grounds taken by the petitioner was that there was no arbitration agreement at all between the applicant and the non -applicant and even if there was one it was inadmissible in evidence as not being properly stamped. It was also alleged by the petitioner that he had never appointed the arbitrator who had given the award. It is therefore clear that if there grounds are established they go to the very root of the matter and make the award void abinitio. It was not a case in which the award was challenged on its merits but a case where the award was being challenged dehors as being non -existent in the eye of law. In such cases it is obvious that Art. 158 of the Limitation Act would have no application, but the application would be governed by the residuary Article 181. I am fortified in my view by a Full Bench decision of the Delhi High Court in Prem Sagar V. Security and Finance Ltd. AIR 1968 Delhi 21, 24 wherein Kapur J. speaking for the Bench observed as follows: -

(2.) THE petition is therefore allowed and the order of the Sub Judge is set aside. The application under S. 33 filed by the petitioner is remitted to the Sub Judge for fresh decision on merits in accordance with law.

(3.) PARTIES are directed to appear before the Sub -Judge on 20 -12 -73, failing which the Sub fudge shall proceed exparte against the party which does not appear.