Full Judgment Text
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PETITIONER:
KUMBHA MAWJI
Vs.
RESPONDENT:
UNION OF INDIA
DATE OF JUDGMENT:
16/04/1953
BENCH:
JAGANNADHADAS, B.
BENCH:
JAGANNADHADAS, B.
MAHAJAN, MEHR CHAND
BOSE, VIVIAN
CITATION:
1953 AIR 313 1953 SCR 878
CITATOR INFO :
E 1970 SC 189 (5)
E 1981 SC2075 (22)
ACT:
Indian Arbitration Act (II of 1940), ss. 14 (2), 31 (3) and
(4) --Filing of award--Umpire handing over award to
parties--Filing in Court by party--Necessity of
authorisation of arbitrator, or umpire--Award filed in two
Courts--Exclusive jurisdiction of Court in which award was
filed earlier--Filing award after arbitration is
complete--Applicability of s. 31(4) ---In a reference",
meaning of.
HEADNOTE:
The mere filing of award in Court by a party to it without
the authority of the arbitrator or umpire is not a
sufficient compliance with the terms of s. 14 of the Indian
Arbitration Act, 1940, nor can it be inferred from the mere
handing over of the original award by the umpire to both the
parties that be authorised them to file the same in Court on
his behalf ; that authority has to be specifically alleged
and proved.
The phrase "in a reference" in s. 31, sub-s. (4), of the
Indian Arbitration Act, 1940, is comprehensive enough to
cover an application first made after the arbitration is
completed and a final award made, and the sub-section vests
exclusive jurisdiction in the Court in which an application
for filing an award has been first made under s. 14 of the
Act.
The respondent who was a party to an award filed an applica-
tion before the Subordinate Judge of Gauhati under s. 14 (2)
of the Indian Arbitration Act, on the 10th August, 1949,
praying that the umpire may be directed to file the award in
Court and upon this notice was issued to the umpire to file
the award in Court before 24th August, 1949. As the
original award had been handed over to the parties, the
umpire sent by post on the 18th August, 1949, a copy of the
award signed by him. The Court directed the respondent to
file the original award in Court and he did so on the 3rd
September, 1949. Meanwhile the appellant’s solicitors sent
to the Registrar of the Calcutta High Court Original Side,
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on the 17th August, 1949, the original award for being filed
in Court and the award was filed on the 29th August:
Held, that, as the umpire had, on the direction of the Sub-
ordinate Judge of Gauhati sent a copy of the award signed.by
him to the Court on the 18th August, 1949, the earlier
filing for the purposes of s. 31(3) of the Arbitration Act
was in the Gauhati Court and not in the Calcutta High Court,
though the original award was filed by the respondent in the
Gauhati Court only after the appellant’s solicitor had sent
the award for filing to the
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Calcutta High Court. In the circumstances the Gauhati Court
alone had jurisdiction to proceed with the hearing of the
dispute under s. 31 of the Act.
Judgment of the Calcutta. High Court affirmed.
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 133 and
134 of 1952.
Appeals from the Judgment and Decree dated the 23rd
February, 1951, of the High Court of Judicature at Calcutta
(Harries C.J. and Bannerjee J.) in Appeal No. 44 of 1950
arising out of the Judgment and Decree dated the 16th day of
December, 1949, of the said High Court (Sinha J.) in its
Ordinary Original Civil Jurisdiction in Award Case No. 208
of 1949.
N. C. Chatterjee (Amiya Kumar Mukherjea, with him) for
the appellant.
C. K. Daphtary, Solicitor-General for India (G. N. Joshi
and Jindra Lal, with him) for the respondent.
1953. April 16. The Judgment of the Court was delivered by
JAGANNADHA DAS J.-On the 28th of January, 1948, the
appellant, Khumba Mawji, entered into an agreement with the
respondent, the Dominion of India (as it then was) to
manufacture and supply, to the Bengal Assam Railway, stone
boulders and ballast from Chutiapara quarry. The agreement
was entered into at Calcutta, though the work was to be
carried out in Assam. It was a term of the agreement that
if any differences arose between the parties, they were to
be referred to the arbitration of two persons, one to be
nominated by each side, and that if the arbitrators were not
able to agree, the matter was to be decided by an umpire to
be nominated by both the arbitrators. Differences having,
in fact, arisen, the dispute was referred to two arbitrators
and on their disagreement the matter went up to an umpire,
one Mr. P. C. Chowdhury. The umpire made two awards on or
about the 20th of July, 1949, in favour of the appellant.
By one of them he directed a sum of Rs. 3,67,000 to be paid
by the respondent to the
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appellant on or before the 19th of August, 1949, with
interest thereafter at 6 per cent per annum in case of
default. By the other he directed a sum of Rs. 83,000 to be
similarly paid by the respondent to the appellant. He is
said to have made over each of the two awards, in original,
to each of the parties. On the 10th of August, 1949, the
respondent filed an application under section 14, sub-
section (2), of the Indian Arbitration Act, 1940, before the
court of the Subordinate Judge of Gauhati in Assam praying
that the umpire, Mr. Chowdhury, might be directed to file
both the awards in court so that the petitioner might get an
opportunity for filing objections thereto. On this
application notice was issued to the umpire to file the
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awards into that court before the 24th of August 1949. The
umpire sent a letter dated 18th August, 1949, to the
Subordinate Judge, which is as follows with copies of the
awards:-
"Dear Sir,
With reference to your notice in money suit No. 63 of 1949
requiring me to submit the awards made by me in the above
mentioned dispute on 20th July, 1949, I beg to submit that
the two awards were made and signed by me in -the presence
of the parties and handed over to me on 20th July, 1949. As
directed by you I am sending herewith copies of the same
signed by me. On the back of each of these copies occurs
the receipt of the parties to the awards."
On receipt thereof, the Subordinate Judge made an order on
24th August, 1949, in the following terms :-
"Notice on the umpire served. Seen his report forwarding
copies of the award of which the originals are said to have
been made over to the parties. Applicant to file his copy
on 3rd September, 1949".
On the 3rd of September, 1949, the respondent filed the
awards which were handed over to it by the umpire, and the
matter was being proceeded with by issue of further notices
and filing of objections in the court of the Subordinate
Judge, Gauhati.
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Meanwhile on the 17th of August 1949, i.e., a week after the
respondent made its first application in the Gauhati court,
the appellant’s solicitors, Messrs. Mukherjee and Biswas,
sent a letter to the Registrar of the High Court, Original
Side, as follows:
" On behalf of our client Mr. Kumbha Mowjee we beg to
enclose herewith two original Awards duly stamped and both
dated, 20th July, 1949, for the respective sums of Rs.
3,67,000 and Rs. 83,000 duly signed by the Umpire Mr. P. C.
Chaudhury for filing.
Please therefore direct the office to file the said two
Awards and to issue notices in respect thereof expedi-
tiously."
After some correspondence between the Deputy Registrar and
the solicitors calling for some further papers, the Deputy
Registrar informed the solicitors by his letter dated the
29th August, 1949, that the award had been filed and asked
the solicitors to take out from the court and serve on the
parties concerned the statutory notice fixing a date for
judgment upon the said award by the Commercial Judge of the
court. Notices were thereupon issued to both the parties in
the following terms:
"To
1. Kumbha Mawji.
2. The Dominion of India represented by the Assam Railway.
Take notice that the Award of the Umpire appointed in the
matter of the above Arbitration Agreement had been,filed on
the 29th day of August, 1949, and that the Court hearing the
commercial causes will proceed to pronounce judgment on such
award on 7th day of November, 1949.
Dated the 29th day of August, 1949."
This notice was served on the respondent on the 2nd of
September, 1949. Thus in respect of these awards,
proceedings were initiated purporting to be under section 14
(2) of the Indian Arbitration Act simultaneously both in the
court of the Subordinate Judge
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882
of Gauhati in Assam as well as on the Original Side of the
High Court at Calcutta.
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The appellant in answer to the notice issued by the Gauhati
court on 3rd September, 1949, appeared before that court on
28th October, 1949, and obtained adjournments from time to
time until 10th December, 1949. On that date the Gauhati
court rejected his prayer for any further adjournment and
fixed 20th January,’ 1950, for an ex parte hearing.
Meanwhile, the respondent after receiving the notice issued
to him by the Calcutta High Court filed, on the 24th of
November, 1949, an affidavit dated the 15th of November,
1949, stating his objections to the jurisdiction of the
Calcutta Court and to the validity of the awards. On the
same date a counter affidavit thereto dated the 19th of
November, 1949, was filed on behalf of the appellant. On
these affidavits the matter was taken up for consideration
by the Commercial Judge of the Calcutta High Court on the
16th of -December, 1949. The learned Judge overruled the
objections of the respondent, and passed judgment on the two
awards. On appeal therefrom by the respondent to the
Division Bench, the learned Judges reversed the judgment of
the single Judge. They held that there had been no proper
application under section 14(2) of the Indian Arbitration
Act, before the High Court of Calcutta, and that
consequently that Court had no jurisdiction to deal with the
matter.
Before the learned single Judge of the High Court the main
objection taken and set out in paragraph 14 of the
respondent’s affidavit dated the 15th of November 1949 was
as follows:
" I submit further that inasmuch as the application of the
Dominion of India under section 14 (2) of the Indian
Arbitration Act was made as aforesaid to the said Court at
Gauhati before the award was filed in this Hon’ble Court by
Kumbha Mawji, the Court at Gauhati alone has jurisdiction."
Under section 31 (1) of the Indian Arbitration Act an award
may woe filed in any court having jurisdiction in the matter
to which the reference relates. The
883
reference in this case arose out of a contract which, as
already stated, was entered into at Calcutta and had to be
performed in Assam. Thus the Gauhati court as well as the
Calcutta High Court admittedly had jurisdiction over the
subject-matter of the reference. The point taken, however,
on behalf of the respondent in their objections was that,
having regard to section 31, sub-section (4) of the Act and
to the fact that an application under section 14, sub-
section (2) for a direction to the umpire to file the award
was made to the Gauhati court as early as the 10th August,
that court was seized of the matter from that date, and that
therefore any application under section 14 OD a later date
to another court, though otherwise competent, was barred
under section 31, sub-section (4). This was the main
question that was seriously pressed before the learned
single Judge. But the learned Judge was of the opinion that
section 31 (4) related only to applications made during the
pendency of a reference to arbitration and not to
applications made subsequent to the making of an award. He
thought that in respect of applications for filing an award
the exclusive jurisdiction was determined with reference to
the question as to which was the competent court in which
the award was, in fact, first filed under section 14, sub-
section (2) (as distinct from when the application for the
filing of the award was first presented). In this view, the
learned Judge held on the facts that the award must be taken
to have been filed earlier in the Calcutta court and not in
the Gauhati court. He accordingly held that the Calcutta
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High Court had exclusive jurisdiction having regard to
section 31 (3), and hence proceeded to judgement on the
award, the respondent not having filed any objections before
him in time.
On appeal, the learned Judges considered it unnecessary for
them to dispose of the case on either of the above grounds
considered by the single Judge, and held that on the facts
it was quite clear that there had been no due filing of the
award at all in the Calcutta court under section 14 (2)
inasmuch as the awards
884
which were claimed to have been duly filed were, in
fact,not filed by the umpire; nor was it shown that they
were filed under his authority. On this limited ground they
reversed the decision of the learned single Judge and
vacated the judgment given in favour of the appellant on
the basis of the two awards. Hence these two appeals to us.
On the, facts stated above three questions arise for
consideration:
(1) Whether the appellant had the authority of the umpire
to file the awards on his behalf into court in terms of
section 14 (2) of the Arbitration Act ;
(2) Whether in view of subsection (3) of section 31 of the
Act it can be said that the awards were filed in the
Calcutta High Court earlier than in the Gauhati court; and
(3) Whether the scope of section 31, sub-section (4) of the
Act is limited to applications under the Act during the
pendency of the arbitration proceedings only.
As regards the first question, section 14, sub-section (2)
provides that,
" the arbitrators or umpire shall, at the request of any
party to the arbitration agreement or any person claiming
under such party or if so directed by the court and upon
payment of the fees and charges due in respect of the
arbitration and award and of the costs and charges of filing
the award cause the award or a signed copy of it, together
with any depositions or documents which may have been taken
and proved before them, to be,filed in court, and the court
shall thereupon give notice to the parties of the filing of
the award."
This section clearly implies that where the award or a
signed copy thereof is in fact filed into court by a party
he should have the authority of the umpire for doing so.
This is, at any rate, the assumption on which the question
has been dealt with in the High Court, and it has not been
contended before us that the filing of the award into court
by a party himself
885
though without the authority of the umpire to do so on his
behalf, is sufficient compliance with the terms of this
section. The learned Judges of the High Court were of the
opinion that the authority of the umpire empowering the
appellant to file the original awards into Court on his
behalf has not been made out on the evidence in the case.
The argument stressed before us is that in para 7 of the
affidavit dated the 19th of November, 1949, filed on behalf
of the appellant in the High Court on the 24th of November,
1949, it is stated that " On or about the 21st July, 1949,
the said Umpire made over the said original award to this
deponent for filing." It is urged that this is an averment
of the requisite authority from the umpire, and it is point-
ed out that this assertion has not been contradicted on the
other side by any reply affidavit. It is contended
therefore that the filing was valid. The learned Judges in
coming to the contrary conclusion relied on two facts,
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namely, that the umpire in his letter to the Gauhati court
dated 18th August, 1949, when sending copies of the awards
in compliance with the notice issued to him by that court
merely stated that he handed over the awards to both the
parties, but did not say that he authorised any of them to
file the same into court on his behalf. The learned Judges
were also of the opinion that the umpire as a person of
commonsense could not be supposed to have authorised both
the parties to file the awards into Court on his behalf. We
are inclined to agree with this reasoning. Where, as in
this case, the originals are said to have been handed over
to both the parties, it cannot be assumed that the mere
handing over of the awards to the parties necessarily im-
plies the authority of the umpire to file the same into
court on his behalf. That authority has to be specifically
alleged and proved. In the present case the statement in
the affidavit relied on by learned counsel before us is no
more than ail assertion that the umpire handed over the
original awards to the appellant for filing, but there is no
allegation that they were so handed over to him for filing
on behalf of the umpire.
886
The umpire may not have been aware that the awards should be
filed into court only by himself or under his authority.
Learned counsel for the appellant urged that the question of
the authorisation of the umpire for the filing of the award
by the appellant was one that was not raised at all as an
objection before the learned single Judge of the High Court,
and that such an objection should not have been taken notice
of for the first time on appeal. It is no doubt true that
neither the affidavit filed on behalf of the respondent nor
the judgment of the learned single Judge gives any indica-
tion of this question having been raised in the first
court,. Indeed, the learned Judges on appeal recognise it
when they say towards the concluding portion of their
judgment as follows:
" It does not appear that the point on which the appeal
succeeds was argued in the court below. But it is a point
of law and no objection was taken before us by the
respondent to the appellant taking the point before us ".
Though it is somewhat difficult to see how the question
raised can be said to be a pure question of law, it is quite
clear from the above extract that no objection was taken by
the respondent to the point being raised. It has not been
suggested before us that this statement in the judgment was
in any way erroneous. Appellant’s counsel argued that if
the learned Judges on appeal felt inclined to dispose of the
case on this point alone, they should have called upon the
umpire to clarify whether or not the appellant had his
authority, or given an opportunity for production of his
affidavit in support of the authority. Learned counsel
presses that an. opportunity should now be allowed. It does
not appear, however that it is either necessary or desirable
at this stage and after this lapse of time to allow this
matter to go back for that purpose. Because, apart from the
question of mere want of proof of authority, it is clear
that in a case of this kind and on the facts above stated,
it was
887
incumbent on the appellant to allege categorically that, in
terms of sub-section (2) of section 4, he had the requisite
authority of the umpire. That allegation is wanting not
only -in the affidavit dated the 19th of November, 1949, but
what is more important is that when the awards were filed
into court on the 17th of August, 1949, by the solicitors on
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behalf of the appellant with a letter which might be treated
as the initial application to the court, there is not a word
to suggest that the awards were being filed under the
authority of the umpire. The letter contained only a bald
statement that the two original awards duly signed by the
umpire were enclosed therewith for filing, with a request to
direct the office to file the two awards and to issue
notices in respect thereof expeditiously. In those
circumstances, there has been clearly no sufficient
compliance with the terms of section 14, sub-section (2) of
the Act to constitute the filing of the awards by the
appellant’s solicitors the filing thereof by the umpire.
As regards the second question, namely, as to whether with
reference to the terms of section 31, subsection (3) the
awards should be held to have been filed earlier in the
Calcutta court -or in the Gauhati court, the view taken by
the learned Commercial Judge was that the filing in the
Calcutta court must be taken to have been earlier. For the
purpose of the consideration of this question it may be
assumed that filing was under the authority of the umpire.
The learned Judge was of the opinion that the filing of the
awards in the Gauhati court must be taken to have been made
on the 3rd September when in pursuance of the prior order of
the Subordinate Judge dated 24th August, 1949, the present
respondent filed into court the original awards with him.
In coming to this conclusion the learned Judge ignored the
fact that on 18th August, 1949, the umpire in response to
the notice previously issued to him forwarded to the
court signed copies of the awards and that the same were in
that court on or before 24th August, 1949. This seems, in
terms, to
888
be sufficient compliance with the provisions- of section 14,
sub-section (2) which only requires that on the directions
of the court the original award or the copy thereof should
be caused by the umpire to be filed into it. The learned
Judge stated that he was not aware whether the copies sent
to the Subordinate Judge were signed copies or not. The
learned Judge failed unfortunately to notice that the umpire
himself in his letter dated 18th August, 1949, stated
clearly as follows:
"As directed by you I am sending herewith copies of the same
(awards) signed by me".
The learned Judge was also inclined to think that the mere
forwarding of the awards does not amount to the filing of
them. Here again, the learned Judge has overlooked that
under section 14, sub-section (2) the actual filing by the
umpire is not essential, but that it is sufficient if the
umpire causes the awards to be filed. It is not suggested
that sending by post in compliance with the notice is not
such "causing".
It appears to us therefore clear that the filing of the
awards in the Gauhati court must be taken to be on the 24th
of August, 1949. So far as the Calcutta court is concerned,
though no doubt the awards were, put into that court by the
appellant’s solicitors on the 17th August, 1949, it appears
clearly from the notice issued by the Registrar dated the
30th of August, 1949, that the awards were treated as filed
only on the 29th day of August, 1949. Paragraphs 8 and 9 of
the respondent’s affidavit filed in the Calcutta court on
24th of November, 1949, contain categorical assertions that
so far as the Gauhati court is concerned, the copies of the
awards were filed by the umpire on the 24th of August, 1949,
while as regards the Calcutta High Court the awards were
filed on the 29th of August, 1949. These assertions have
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not been contradicted on behalf of the appellant in the
counter-affidavit filed on the same day. From these facts,
it is clear that the earlier filing for the purposes of
section 31(3) is in the Gauhati court and not in the
Calcutta court as held by the learned single Judge under an
erroneous impression as to the facts. We may as well
mention At this stage that
889
it was not suggested before us that for legal purposes the
filing of the awards in the Calcutta High Court (on the
assumption of existence of authority in the appellant for
such filing on behalf of the umpire) is not the 29th of
August, 1949, but only the 10th of August when the letter
was sent by the solicitors to the Registrar enclosing the
awards. We mention this because it appears from the
judgment of the Division Bench of the Calcutta High Court
that some such point was raised there, but before us the
contrary was assumed. We are accordingly of the opinion
that even if the authority of the umpire for the filing of
the award into court on his behalf by the appellant is to be
taken for granted, it was in the Gauhati court that the
awards must be taken to have been filed earlier. On this
ground, therefore, we are inclined to hold that the Gauhati
court alone has jurisdiction under section 31 (3) of the
Act.
The third question which remains for consideration is
whether sub-section (4) of section 31 of the Indian
Arbitration Act of 1940 applies only where the first
application under the Act was made during the course of
pendency of a reference to arbitration or also to a case
like the present one where such first application is made
after the completion of the arbitration and on the making of
an award. As already stated, the learned Judges on appeal
did not deal with this question. The trial Judge, however,
considered the matter, and held that the above provision
related only to an application made during the pendency of a
reference to arbitration. In the view of the learned Judge,
" In order to attract sub-section (4) an application must
have been made during the pendency of the reference, and if
such an application had been made, all other applications
arising out of that reference (whether made in the reference
or not) must be made in that court".
Apparently, the learned Judge construed the phrase "in a
reference " in section 31, sub-section (4), as meaning "in
the course of a reference", and that is also the
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900
contention before us of the counsel for the appellant, which
requires closer examination.
Section 31 of the Indian Arbitration Act of 1940 is in the
following terms:
" (1) Subject to the provisions of this Act, an award may be
filed in any Court having jurisdiction in the matter to
which the reference relates.
(2)Notwithstanding anything contained in any other law for
the time being in force and save as otherwise provided in
this Act, all questions regarding the validity, effect or
existence of an award or an arbitration agreement between
the parties to the agreement or persons claiming under them
shall be decided by the Court in which the award under the
agreement has been, or may be, filed, and by no other Court.
(3)All applications regarding the conduct of arbitration
proceedings or otherwise arising out of such proceedings
shall be made to the Court where the award has been, or may
be, filed, and to no other Court.
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(4)Notwithstanding anything contained elsewherein this Act
or in any other law for the time being in force, where in
any reference an application under the Act has been made in
a Court competent to entertain it, that Court alone shall
have jurisdiction over the arbitration proceedings and all
subsequent applications arising out of that reference and
the arbitration proceedings shall be made in that Court and
in no other Court".
Sub-section (1) relates to the question as to where a
completed award has to be filed, and prescribes the local
jurisdiction for that purpose. Sub-section (2) deals with
the ambit of the exercise of that jurisdiction, and declares
it to be exclusive by saying that "all questions regarding
the validity, effect or existence of an award or arbitration
agreement between the parties to the agreement or persons
claiming under them shall be decided by the Court in which
the award under the agreement has been, or may be, filed and
by no other Court". Sub-section (3) is intended to provide
891
that all applications regarding the conduct of arbitration
proceedings or otherwise arising out of such proceedings are
to be made only in one court, and lays on the concerned
party the obligation to do so. Then comes sub-section (4),
the object of which apparently is to go further than sub-
section (3), that is, not merely casting on the party
concerned an obligation to file all applications in one
court but vesting exclusive jurisdiction for such
applications in the court in which the first application has
been already made.
Thus it will be seen on a comprehensive view of section 31
that while the first sub-section determines the jurisdiction
of the court in which an award can be filed, subsections
(2), (3) and (4) are intended to make that jurisdiction
effective in three different ways, (1) by vesting in one
court the authority to deal with all questions regarding the
validity, effect or existence of an award or an arbitration
agreement, (2) by casting on the persons concerned the
obligation to file all applications regarding the conduct of
arbitration proceedings or otherwise arising out of such
proceedings in one court, and (3) by vesting exclusive
jurisdiction in the court in which the first application
relating to the matter is filed. The context, therefore, of
subsection (4) would seem to indicate that the sub-section
was not meant to be confined to applications made during the
pendency of an arbitration. The necessity for clothing a
single court with effective and exclusive jurisdiction, and
to bring about by the combined operation of these three
provisions the avoidance of conflict and scramble is equally
essential whether the question arises during the pendency of
the arbitration or after the arbitration is completed or
before the arbitration is commenced. There is no
conceivable reason why the Legislature should have intended
to confine the operation of subsection (4) only to appli-
cations made during the pendency of an arbitration, if as is
contended, the phrase " in any reference " is to be taken as
meaning " in the course of a reference ".
It may be noticed that the Arbitration Act deals with
arbitration of three different categories: (1) arbitration
892
without intervention of the court, dealt with in sections 3
to 19 comprising Chapter IT; (2) arbitration with the
intervention of a court where there is no suit pending
provided in section 20 which is a separate Chapter III; and
(3) arbitration in suits dealt with in sections 21 to 25
comprising Chapter IV. The jurisdiction as regards the
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latter two classes of arbitrations in respect of certain
matters is provided in the very provisions relating to those
two classes of arbitrations, that is, section 20, sub-
section (1) and section 21. Sub-section (1) of section 31
appears to refer only to the first class. It may,
therefore, have been, plausibly, suggested that sub-sections
(2), (3) and (4) refer only to this class. But no such
position was taken up before us. Indeed, having regard to
the wide language employed in these sub-sections it has been
assumed that sub-sections (2) and (3) cover all three
classes in all their stages. If so, is there any sufficient
reason to think that sub-section (4) was meant to have a
very restricted operation ? On the view of this sub-section
suggested for the appellant, not only would an application
made after the award was pronounced be excluded from sub-
section (4) but also an application made before the
commencement of the arbitration, i.e., for the filing of an
agreement of reference and for a direction thereupon. It
must be remembered that section 31 is one of the group of
sections headed " General " which by virtue of section 26
are applicable to all arbitrations. Unless therefore the
wording in sub-section (4) of section 31 is so compelling as
to confine the scope thereof to applications during the
pendency of an arbitration, such a limited construction must
be rejected.
As already stated, the entire basis of the limited
construction is the meaning of the phrase " in any
reference" used in subsection (4) as meaning " in the
course of any reference ". But such a connotation thereof is
not in any ordinary sense compelling. The preposition " in
" is used in various contexts and is capable of conveying
various shades of meaning. In the Oxford English Dictionary
one of the shades of meaning of this preposition is
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"Expressing reference or relation to something; in reference
or regard to ; in the case of, in the matter, affair, or
province of.
Used especially with the sphere, or department in relation
or reference to which an attribute or quality is
predicated".
In the context of section 31, sub-section (4), it is
reasonable to think that the phrase "in any references means
" in the matter of a reference ". The word "reference"
having been defined in the Act as "reference to
arbitration", the phrase "in a reference" would mean "in the
matter of a reference to arbitration". The phrase "in a
reference" is, therefore, comprehensive enough to cover also
an application first made after the arbitration is completed
and a final award is made, and in our opinion that is the
correct construction thereof in the context. We are,
therefore, of the opinion that section 31 (4) would vest
exclusive jurisdiction in the court in which an application
for the, filing of an award has been first made under
section 14 of the Act.
It is undisputed that the application by the respondent
Union of India was made before the Gauhati court on the 10th
August, 1949, and the earliest move by the appellant before
the Calcutta court was on the 17th August, 1949. Oil these
facts and on the view of the interpretation of section.31,
sub-section (4), which we are inclined to take, it is clear
that the Gauhati court only has the jurisdiction and not the
Calcutta High Court as regards the present dispute.
In the result, the two appeals must be dismissed with costs.
Appeals dismissed.
Agent for the appellant: Sukumar Ghose.
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Agent for the respondent: G. H. Rajadhyaksha.
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