H.N. Seth,N.N. Mithal, JJ. - (1.) M /s. Karamat Husain has come up in appeal against the order of the Temporary Civil and Sessions Judge, Gorakhpur, dated 20th September, 1972, setting aside an award dated 22nd November, 1969 made by the Arbitrator, Sri R.K. Puri, directing that the arbitration be superseded, and declaring that the arbitration agreement between the parties shall cease to be effective.
(2.) THE dispute between the Appellant and the Respondents was referred to the Arbitrator, Sri R.K. Puri, Divisional Engineer, North Eastern Railway, Gorakhpur. He gave his award on 22nd November, 1969. The Appellant then moved an application under Section 14 of the Indian Arbitration Act praying for the filing of the said award. After the award was filed, it was found to be insufficiently stamped. Accordingly, the Court, vide its order, dated 20th September, 1969, (impugned order), quashed the award and set it aside. It also directed that the arbitration agreement shall stand superseded and will cease to be effective. Being aggrieved, M/s. Karamat Husain and Sons has come up in appeal before this Court. Learned Counsel for the Appellant contends that in the circumstances of the case, the lower court was not justified in superseding the arbitration agreement and in declaring that the same would cease to be effective.
(3.) SECTION 19 of the Arbitration Act which is relevant for our purposes runs thus: Where an award has become void under Sub -Section (3) of Section 16 or has been set aside, the Court may by order supersede the reference and shall thereupon order that the arbitration agreement shall cease to have effect with respect to the difference referred.;