RAJENDRA DAYAL Vs. GOVIND
HIGH COURT OF MADHYA PRADESH
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RAINA J -
(1.) THIS is an appeal under section 39 of the Indian Arbitration Act.
(2.) APPELLANT Rajendra Dayal constitutes one party while respondents Govind Vaidya and Shri Krishna Tilak constitute the other party. The parties entered into an agreement of partnership dated 21-8-1955 and another agreement of hire on the same date (copies of which are at pages 131 to 145 of the Paper Book). The agreement of partnership contained a clause according to which the disputes about the agreement were to be referred to arbitration according to the Indian Arbitration Act (hereinafter referred to as the Act). Under the said clause each party was to appoint an arbitrator within 15 days of the notice of the dispute, and in case of difference of opinion between the two arbitrators they were to appoint an umpire. The decision of the arbitrators was to be given within a period of 3 months from the date of reference of the dispute and was to be final and binding on the parties.
As disputes arose between the parties in respect of the said agreement, party No. 2 (respondents) appointed Dr. B. S. Majumdar of Bhelsa as their arbitrator and called upon party No. 1 (appellant) to appoint his arbitrator within 15 days of the receipt of the notice. But as he failed to appoint an arbitrator on his behalf within the stipulated time, party No. 2 appointed Dr. Majumdar as the sole arbitrator in the case and called upon him to give his award within 3 months vide letter dated 28-12-1955 (copy at page 117 of the Paper Book). Dr. Majumdar entered upon the reference after due notice to both the parties, and the parties participated in the arbitration proceedings. On 1-4-1956, the appellant (party No. 1) raised an objection that as the period of 3 months had expired he had no jurisdiction to proceed with the arbitration proceedings. This objection was rejected and Dr. Majumdar continued the proceedings and ultimately delivered the award (Ex. P. 1) on 18-11-1956, whereby party No. 1 (appellant) was required to pay a sum of Rs. 15,301-3-6 to party No. 2 (respondents). The appellant, however, did not take part in the proceedings after 1-4-1956.
(3.) ON 14-2-1957, respondents (party No. 2) filed an application under section 14 (2) of the Act in the Court of the Additional District Judge, Vidisha, praying that Dr. Majumdar be directed to file the award together with all documents and papers in Court. The Court thereupon issued a notice dated 10-5-1958 to Dr. Majumdar, calling upon him to file the award. Dr. Majumdar informed the Court by letter dated 16-6-1958 that the papers relating to the arbitration proceedings had been produced in the Court of the City Magistrate, Ujjain, and they should be summoned from that Court vide page 23 of the Paper Book. Thereafter, steps were taken by the Court to obtain the proceedings from the Court of the City Magistrate, Ujjain. ON 20-12-1958, Dr. Majumdar filed the award in Court and he was also examined on that day with reference to it and thereafter it was ordered that notice be issued to the appellant (vide order sheet dated 20-12-1958). In pursuance of this order, notice dated 15-7-1959 was issued to the appellant for hearing on 5-8-1959. The notice was received by him on 3-8-1959 (vide copy of the notice at pages 25 and 26 of the Paper Book).;
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