Namdeo S/O Maroti Gabhane vs Monabai (Smt.) W/O Laxman Jadhao And ... on 3 February, 1989
The Delhi High Court in Anil Narendra v. Virendra and others, I.L.R. 1974(2) Delhi 117 have also taken the similar view. The Delhi High Court has held that a private reference to an arbitration in an identical suit without the knowledge of the Court and without its direction is invalid and an award resulting therefrom, cannot be made a rule of the Court unless all the parties interested in the suit consent to the award being filed into the Court as a compromise or adjustment of the suit. It further held that an agreement to refer a dispute to arbitration when the suit is pending for adjudication of the dispute to arbitration when the suit is pending for adjudication of the dispute is not illegal. The parties are competent to make a valid reference under Chapter II of the disputes in a pending suit if they agree to an arbitration without the supervision of the Court and to withdraw the suit, even if reference is made before the withdrawal of the suit. It would be enough in law that the award is made after the suit is withdrawn when proceedings to obtain judgment in terms of the award can be obtained not in the suit itself under Chapter 2 of the Act. We are somewhat concerned here with the views expressed by the Delhi Court to the effect that a private arbitration in a pending suit is not illegal or invalid.