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Firm Sardar Mal Hardat Rai Vs. Firm Sheo Baksh Rai-sri Narain - Court Judgment

LegalCrystal Citation
CourtAllahabad
Decided On
Judge
Reported in66Ind.Cas.907
AppellantFirm Sardar Mal Hardat Rai
RespondentFirm Sheo Baksh Rai-sri Narain
Cases ReferredBaker v. Stephens
Excerpt:
arbitration act (ix of 1899), schedule i, clause 3, meaning of - award made three months after notice but within three months of entering on reference, validity of. - - 5. in addition to that, under the old clause in england, which was slightly different in form, an equally strong court same to the conclusion in baker v......upon the words of clause (3) in the schedule.3. we are of opinion that the provisions entering on the reference' and 'having been ailed upon to act by notice in writing' are alternative in this sense, that where no reference is entered upon at all, then the time runs from the notice sailing upon the arbitrators to act. but, on too other hand, even although the arbitrators may be called upon to act by entering upon the reference, if they enter upon the reference, they have three months from that moment for making their award and for enlarging the time for making the award if the circumstances at the reference satisfy them that they cannot complete the award within three months. to hold otherwise would seem to strike cat from clause 3 the words within three month after.....
Judgment:

1. We have some to the conclusion that this appeal must be allowed.

2. We think the learned Judge has placed too narrow an interpretation upon the words of Clause (3) in the Schedule.

3. We are of opinion that the provisions entering on the reference' and 'having been ailed upon to act by notice in writing' are alternative in this sense, that where no reference is entered upon at all, then the time runs from the notice sailing upon the arbitrators to act. But, on too other hand, even although the arbitrators may be called upon to act by entering upon the reference, if they enter upon the reference, they have three months from that moment for making their award and for enlarging the time for making the award if the circumstances at the reference satisfy them that they cannot complete the award within three months. To hold otherwise would seem to strike cat from Clause 3 the words within three month after entering on the reference' in a case where one of the parties happened to call upon the arbitrators to act before they began the reference.

4. This clause was considered by the English Court of Appeal in Baring Gould v. Sharpington Comtined Fick end Shovel Syndicate (1899) 2 Ch. D. 80 : 68 L. J. Ch. 429 : 80 L. T. 783 : 47 W. R. 564 : 15 T. L. R. 366 : 6 Manson 430. And the view whish we take seems to be that whish was laid down by the Master of the Rolls, that late Lord Lindley, in a passage contained in page 91 of the report.

5. In addition to that, under the old clause in England, which was slightly different in form, an equally strong Court same to the conclusion in Baker v. Stephens (1867) 2 Q. B. 523 : 8 B. & S. 438 : 86 L. J. Q. B, 236 : 15 W. K. 902. that 'entering upon the reference' means 'not when an arbitrator accepts the office, or takes upon himself the duty but when he actually enters upon the matter of the reference, when the parties are before him, or under some peremptory order compelling him to conclude the hearing ex parte.'

6. The result is that the appeal is allowed and the award in ordered to be filed. The appellant will sot his costs here and below. The costs in this Court will include fees on the higher scale.

7. This order as to costs does not include the respondent Sri Kishen. We direct that there should be no order as against him for costs.


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