A.N. Varma, J. - (1.) THIS appeal is directed against an order passed by the learned Civil Judge, Saharanpur dated 31st January, 1978 rejecting the objections filed by the Appellant against an award and making the award a rule of the court.
(2.) THESE are the relevant facts. The Appellant and the Respondent entered into a contract of loading and unloading or transportation of Sugarcane from the Sugarcane centre to the Defendant 's mills. In the contract there was a clause that every dispute would be referred to the Chairman of the Respondent corporation whose decision shall be final and binding on the parties. It appears that a dispute arose between the parties regarding payment. The Plaintiff moved an application under Section 20 of the Arbitration Act for filing of the arbitration agreement and for reference of the dispute to an Arbitrator. In the application, it was asserted that the named Arbitrator being the Chairman of the Respondent corporation would naturally be biased and hence the court should itself appoint another Arbitrator. The application was contested by the Respondent, who stated that the dispute should be referred if at all to the Chairman of the Respondent -corporation who was named by the parties in the agreement. The court considered the rival contentions of the parties and allowed the application of the Appellant under Section 20 of the Arbitration Act and referred the dispute to the Chairman of the Respondent -corporation. The arbitrator was directed to proceed with the adjudication of the dispute in accordance with law and submit the award within three months. Before the Arbitrator the parties filed their respective claims. The Arbitrator considered the entire material and by an award dated 31st December, 1973 held that the Appellant was liable to pay a sum of Rs. 15,779.98 with interest calculated at the rate of 6 per cent per annum from the date of the award to the realisation thereof to the Respondent -corporation.
(3.) WHEN the award was filed for being made a rule of the court, the Appellant filed an objection under Section 30 of the Arbitration Act, the court considered the objection of the Appellant and rejected the same by the aforesaid order by which after rejecting the objection the court directed that a decree shall be prepared in accordance with the award.;