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Ashish Bansal (service)     23 October 2008

Power(s) of Sole Arbitrator

Dear All,

Against named sole arbitrator's award an objection appeal was filed. Two major objections raised were :

1.) Respondent filed objections to arbitration proceedings and jurisdiction. (Please note here that arbitrator was named sole arbitrator in agreement- which got expired in two years span period from the date of signing by both the parties BUT respondent continued in the shop of claimant even after expiry of said agreement)

2.) Objections filed by respondent before the sole arbitrator was decided at the time of passing of Award.  Does the arbitrator has the power to do so and if Yes under what section of Arbitration & Conciliation Act 1996.


Please comment 



Learning

 10 Replies

H. S. Thukral (Lawyer)     23 October 2008

Section 16 of the ACA mandates decision on pleas of juridiction by the Arbitrator before continuing with the Arb. proceedings. l

mintu (advocate)     23 October 2008

Dear Ashish


 


Hon'ble arbitral tribunal  was required to decide to decide first the objection and only then he can proceed with the matter. But if  the tribunal has  actual  jurisdiction then no matter when he decide the same or left undecided the same. There is a judgment of Hon'ble Delhi High Court in this effect but I haven't remembered  the same. I will inform you if remember the citation


Hope you have got your required answer.


Thanks.


Mintu

Murali Krishna (Govt..Employee)     23 October 2008

1. In both the circumstances mentioned by you, recourse to you is to proceed under Sec 34 of A&C Act, within 90 days (+30 days if cause is shown) from the date of receipt of the award. This limit is very strict one and can not be condoned. (Exception is only under S.14 of Limitation Act).


 


2. In case of objection to proceedings, you have to take objection within 15 days from the day you come to know that violation of proceedings. Arbitrator has power to proceed without considering your objection. Refer S-13 (5).


 


3. If the objection is to jurisdiction, it has to be made before submission of your written statement to the claims. If arbitrator rejected them, he can proceed further by making award. Refer S. 16 (5).


 


Under A&C Act, arbitrator, if he intends to reject the objections can proceed and make his award. He need not stop to give clarifications/remarks/order, whenever any objection is raised and then proceed. The prime purpose of Arbitration & Conciliation  Act is to curtail delay and frivolous objections. Ultimately, if the objections are proved to be not correct, you have an award to be executed. If the award is not correct, you have a time limit of 90 days for appeal under Sec 34. If at every stage of objection, arbitrator has to stop means, there is no difference between courts of law and arbitration proceedings, which are essentially in private domain.  


 


 

Sushil Kumar Bhatia (Advocate)     23 October 2008

As per your case there should be an agreement between parties for particular contract if some dispute arised in contractual period there should be specific article in agreement about the appointment of arbitrator by name and both parties must be agreed suppose some dispute arised in between parties to the agreement which forwarded and submitted in writing to the arbitrator and after inviting objection of other parties matter was finalized by arbitrator by passing decree called as award which shall be binding upon both parties if any party aggrieved by awrd can file appeal if there is any irregularity or apportunity of being heard not given the appeal is sub judice before tribunal or district judge then wait till decision in my v iew if award declared by arbitrator after hearing of both parties it will be final decision not liable to challenged and award should be executed through court of law .for further querry my email mr.sushil_bhatia@rediffmail.com

ADV. VIJAY KRISHNA MASKE (LAWYER)     18 September 2011

Sir,
 
This is Advocate Vijay Krishna Maske, i got your email from lawyersclubindia.com,
I had query regarding an award passed by Sole arbitrator of the Finance Company,
My client has taken loan from finance Company for purchase of vehicle, and after delay
in paying installments, his vehicle was seized by the company, at the time of seizer his dues wher around 30000/- Rs
but now they passed an arbitration award against him, which says that you have to pay Rs.70000/-, and in the award they have not mentioned any deduction amount they got from the sale of seized vehicle.
 
Sir I need your help, should i wait until they file execution of award case in court, or is it possible to file case for setting aside of arbitral award u/sec - 34 of ACA 1996, please guide and how to do it?
 
 
regards,
 Adv. Vijay Krishna Maske

H. S. Thukral (Lawyer)     18 September 2011

File objections to Award within 60 days of receipt of the same. 

ADV. VIJAY KRISHNA MASKE (LAWYER)     19 September 2011

Thanks Sir for your kind reply, but where and how to file objections to the award,

i still have enough time.

H. S. Thukral (Lawyer)     19 September 2011

You have to file the objections before the District Judge. An award can be set aside if it contravenes section 34 of the ACA. You have to study the award carefully. 

ADV. VIJAY KRISHNA MASKE (LAWYER)     20 September 2011

thank you sir thank you very much, am grateful to you sir, but what will be the consequences if am not taking any objection, please sir?

H. S. Thukral (Lawyer)     20 September 2011

Award shall attain finality and can be executed through court.


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