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Showing contexts for: when does arbitrator enter reference in Sm. Bharati Mukherjee vs Shiva Trading Co. And Ors. on 15 September, 1982Matching Fragments
8. On 16th April. 1580, there was a letter to the Arbitrator calling upon him to enter upon the reference. On 18th April, 1980, a notice was sent by the Arbitrator to the petitioner -- enclosing a statement of claim. On 22nd April, mo, the suit No. 353 of 1980 was filed by the appellant. In the petition itself there is no averment that a statement of claim had not been filed nor served upon the petitioner. It has also not been alleged specifically anywhere that the petitioner was not given any time or opportunity to deal with the allegations made in their statement of claim.
13. We shall now deal with the point of limitation. Schedule 1 para 3 lays down:
"The arbitrators shall make their award within four months after entering on the reference or after having been called upon to act by notice, in writing from any party to the arbitration agreement or within such extended time as the Court may allow."
It has been contended in this case that the Arbitrator had entered on the reference on the 18th April, 1980 and the award was made more than a year thereafter. Therefore, the award is a nullity. In the alternative, it has been argued that after having been called upon to act on a notice in writing from the party the Arbitrator should have completed the proceedings and made his award within four months from 16th April. 1980 and in that view of the matter the award that was made was without any jurisdiction.
14. In our opinion, this point is also without any merit. Schedule 1 para 3 requires the Arbitrator to make the award within four months after entering on the reference. In thus case, the Arbitrator had issued a notice on 18th April, 1980 but that was only a ministerial act. The Arbitrator was called upon to enter on reference and the statement of claim, in triplicate, was given to the Arbitrator by the applicant the respondent herein. On receiving that application the Arbitrator sent a notice to the appellant calling upon her to file her counter-statement. In our opinion, that did net amount to entering on the reference as contemplated by Schedule 1, para 3 of the Arbitration Act. This point has been gone into by a Full Bench of this Court in the case of Ramanath Agarwalla v. Goenka & Co., wherein the law on this point has been summarised in the following words:--
"(1) An Arbitrator does not enter on the reference as soon as he assumes the office of an Arbitrator. An Arbitrator does not necessarily enter on the reference when he actually commences the decision of the matter in the presence of both parties or ex parte. An Arbitrator enters on a reference when he first applies his mind to the dispute or controversy before him depending on the facts and circumstances of each case."
15. It has been contended on behalf of the appellant that the period of four months must be computed from the date when the Arbitrator was called upon to act by a notice which was given in this case on 16th April, 1980. Schedule 1, para 3 does not say that the Arbitrator shall make his award within a period of four months from the date he is being called upon to act or called upon to enter on the reference.