Waverly Jute Mills Co. Ltd vs Raymon & Co. (India) Private Ltd.(And ... on 4 May, 1964
In Waverly Jute Mills Co. Ltd. v. Raymond & Co. Ltd. (1), it was held that where, however, it is a term of the very contract whose validity is in question, it has no existence apart from the impugned contract and must perish with it. An agreement for arbitration is the very foundation on which the jurisdiction of the Arbitrators to act rests, and where that is not in existence at the time when they enter on their duties, the proceedings must be held to be wholly without jurisdiction. And this defect is not cured by the appearance of the parties in those proceedings even if that is without protest, because consent cannot confer jurisdiction. It was further held that if an award deals with a matter not covered by the agreement it could either be modified or remitted and where such matter is dealt with on the invitation of the parties contained in the statements, the Arbitrators must be held to have acted within jurisdiction.