R. Vs. Raveendran, J. - (1.) The respondent has entered appearance through caveat. Leave granted. Heard the learned counsel.
(2.) Certain disputes between respondent and appellant were referred to arbitration. The Arbitrator made an award dated 14-9-2005 directing the appellant to pay to the first respondent, a sum of Rs. 57.6 crores with interest. The appellant filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 (in short Act) before the City Civil Court, Bangalore for setting aside the said award. The respondent filed its written statement, resisting the claim. The appellant made an application under Order XIV, Rules 1 and 3 of Code of Civil Procedure (Code for short) read with Rule 4(b) of the High Court of Karnataka Arbitration (Proceedings before the Courts) Rules, 2001 (Rule for short) requesting the Court to frame issues in the matter. The civil Court rejected the application by an Order dated 12-9-2006.
(3.) The petitioners Writ Petition challenging the said order was dismissed on 12-9-2008. The learned Single Judge was of the view that applications under Section 34 were not necessarily in the nature of a adversarial proceeding where a dispute between two parties requires adjudication by the Court; that there is a legal presumption in favour of the award being valid; and that whether the opposite party joins issue or not, the person challenging the award has to make out one of the grounds enumerated under Section 34(2) of the Act. Therefore, he held that there is no need for the Court to frame issues, as is done in a civil suit. The writ appeal filed by the petitioner was dismissed by the impugned order, affirming the decision of the learned Single Judge. Feeling aggrieved, the appellant has filed this appeal by special leave.;