J&K PLASTIC UDHYOG Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) THIS is a joint application filed by the two arbitrators appointed vide Court order dated 29 -12 -1989 passed in Arbitration Application No. 189 of 1989, praying for reference of the disputes to Shri Justice K.K. Gupta (Retd), an Umpire appointed by them. The application is resisted by the respondent -company on the plea that the two arbitrators were incompetent to appoint Shri Gupta as Umpire in light of cl. 13 of the agreement which envisaged the appointment of an Umpire before the arbitrators had entered the reference.

(2.) THE matter raises in interesting point, viz: whether the action of the arbitrators to appoint an Umpire before they entered the reference vitiated the reference and invalidated the award passed by them?

(3.) IT appears that after dispute arose between the parties regarding the quantum of the claim, reference was made by this Court to the two arbitrators, namely, M/S Kuldip Raj Sharma and R.K. Sehgal, for adjudication of the disputes vide order dated 29 -12 -1989 which provided as under: -