J KUPPUSWAMI CHETTY Vs. BVANANTHARAMIER

JUDGEMENT

(1.) The appellant and the two respondents formerly carried on a business in partnership under the name of Bhagyalakshmi & Co. Disputes arose between them which were referred to the arbitration of three named arbitrators by an agreement in writing between the parties, dated 4 January, 1945. The agreement, inter alia provides that (1) in case P. Govindasawmi Ghetti (one of the arbitrators) declined to act, the appellant should be at liberty to nominate another arbitrator in his place ; (2) in case two of the arbitrators declined to act, the whole arbitration should come to an end and the parties be relegated to their prior rights ; a decision of the majority of the arbitrators should be the decision which must prevail in all matters connected with the arbitration ; (3) the arbitration should be completed within one month from the date of the agreement subject to an extension of time, not exceeding six weeks thereafter, being taken if all the three arbitrators passed a resolution to that effect.

(2.) No resolution was passed by the three arbitrators extending the time during which they could conclude the arbitration and make their award. The one month's period expired on February 4th, 1945, by which date no award had been made. Subsequently the three arbitrators examined the partnership accounts. This examination was completed by February the 27th. Thereafter P. Govindaswami Ghetti declined to act further as an arbitrator, but the appellant did not appoint another arbitrator in his place pursuant to his power or right to do so given by the agreement.

(3.) Later, on 15 March, 1945, the remaining two arbitrators addressed a communication, which later was called a letter, to the first respondent and to the appellant. None of the parties requested the signatory arbitrators to file this document in Court and no other steps were taken in that behalf and it has not been filed in Court as an award as provided in the Arbitration Act.