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Dinasari Ltd. Vs. HussaIn Ali and Sons and anr. - Court Judgment

LegalCrystal Citation
SubjectArbitration
CourtChennai High Court
Decided On
Case NumberA.A.O. No. 232 of 1950
Judge
Reported inAIR1951Mad879; (1951)1MLJ476
ActsArbitration Act, 1940 - Sections 2 and 34
AppellantDinasari Ltd.
RespondentHussaIn Ali and Sons and anr.
Appellant AdvocateS.V. Narayana Ayyar, Adv.
Respondent AdvocateV. Srinivasan, ;T.R. Ramachandran and ;N. Rajagopalan, Advs.
DispositionAppeal dismissed
Cases ReferredShriram Hanutram v. Mohanlal
Excerpt:
- - if the arbitrators have no jurisdiction to decide that point, it necessarily follows that they are not competent to function as well......not admitted by the resp. it is not an agreement as contemplated under section 2(a), arbitration act. it has been held by kania j. (as he then was) in shriram hanutram v. mohanlal & co., i. l. r. (1940) bom. 249 that the existence of an admitted agreement is a necessary pre-requisite for an arbitrator undertaking to decide the dispute. here in this case the written agreement is denied & it is not open, therefore, to the arbitrators to decide whether the agreement as such exists or not. if the arbitrators have no jurisdiction to decide that point, it necessarily follows that they are not competent to function as well. in such circumstances the suit cannot be stayed under section 34, arbitration act. the decision of the lower ct. is correct & the appeal is dismissed with costs.
Judgment:

Govinda Menon, J.

1. The written agreement on which the applt. relies is not admitted by the resp. It is not an agreement as contemplated Under Section 2(a), Arbitration Act. It has been held by Kania J. (as he then was) in Shriram Hanutram v. Mohanlal & Co., I. L. R. (1940) Bom. 249 that the existence of an admitted agreement is a necessary pre-requisite for an arbitrator undertaking to decide the dispute. Here in this case the written agreement is denied & it is not open, therefore, to the arbitrators to decide whether the agreement as such exists or not. If the arbitrators have no jurisdiction to decide that point, it necessarily follows that they are not competent to function as well. In such circumstances the suit cannot be stayed Under Section 34, Arbitration Act. The decision of the lower Ct. is correct & the appeal is dismissed with costs.


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