TMI Blog1996 (8) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... ters or claims, inter alia, arising out of transactions in securities entered into between the stated dates in which a person notified was involved. Therein, the Company Law Board has been held to be a court exercising the functions of the court; therefore, it is possessed of the trappings of a Court. Thus, we have no hesitation to hold that the proceedings before the District Forum, State Commission and the National Commission are legal proceedings. The District Forum, National Commission and the State Commission are judicial authorities falling under Section 34 of the Arbitration Act. As seen, Section 34 of the Act does not confer and automatic right nor create an automatic embargo on the exercise of the power by the judicial authority under the Act. It is a matter of discretion. Considered from this perspective, we hold that though the District Forum, State Commission and National Commission are judicial authorities, for the purpose of Section 34 of the Arbitration Act, in view of the object of the Act and by operation of Section 3 thereof, we are of the considered view that it would be appropriate that these forums created under the Act are at liberty to proceed with the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities under the Act are legal proceedings and the authorities are judicial authorities within the meaning of Section 34 of the Arbitration Act, 1940. The Commission, therefore, was in error in its conclusion that proceedings before the authorities are not legal proceedings nor is the Tribunal a judicial authority. Ms. Binu Tamta, learned Counsel appearing for the respondent contended that there is no consensus ad idem between the parties on the point of reference to an arbitration; pursuant to a quotation given by the appellant, the respondent agreed only on the conditions enumerated and communicated by the respondent to which the appellant had agreed thereunder. No arbitration clause emerged by consensus ad idem. Therefore, there is no arbitration agreement for reference of the dispute for arbitration. It is also contended that the respondent, after issuance of the notice by the State Commission, had appeared and taken five adjournments to file the counter; thereby, it had acquiesced to the jurisdiction of the State Commission. Thereby, the appellant, having participated in the proceedings before the State Commission, is not entitled to avail of the remedy of stay of further p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant had taken five adjournments to file the counter. On the fifth occasion the counter came to be filed with the petition for stay of the proceedings. But, unfortunately, this question was not argued before the National Commission and, therefore, we cannot go into the question whether the appellant acquiesced to the jurisdiction of the State Commission before proceedings further in the matter. The crucial question is : whether the proceedings of the forums created under the Act are legal proceedings and the authorities have the trappings of judicial authorities of a court within the meaning of Section 34 of the Arbitration Act? Before going into the decisions of this Court it is necessary to read the provisions of the Act so that we can have a clear picture of the conspectus of its operation. Section 3 envisages that the provisions of the Act shall be in addition to, and not in derogation of the provisions of any other law for the time being in force . Section 10 speaks of Constitution and composition of District Forums so as to consist of persons specified in Clauses (a) and (b). They shall include a person who is, or who has been, or is qualified to be a District J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the Act District Forums have got power to prescribe the procedure of collecting and discovering evidence. Under Sub-section (5), every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of Section 193 and 228 of the Indian Penal Code and shall be deemed to be a Civil Court for the purpose of Section 195 and Chapter XXVI of the CrPC, 1973. Sub-section (6) provides that where the complainant is a consumer referred to in Sub-clause (iv) of Clause (b) of Sub-section (1) of Section 2, the provisions of Rule 8 of Order 1 of the First Schedule to the CPC, 1908 shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon. The finding of the District Forum is envisaged under Section 14 of the Act. If any person feels aggrieved by the order of the District Forum there is a right of appeal provided under Section 15 to the state Commission. The State Commission, in addition to the remedy of appeal against the order of District Forum, has original jurisdiction to entertain complaints if the matter is covered under its sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem are legal proceedings. Similar controversy was considered by this Court in The Bharat Bank Ltd. Delhi v. The employees of the Bharat Bank and in Associated Cement Companies Ltd. v. P.N. Shanna and Anr.. In Sarojini Ramaswami v. Union of India , one of us, K. Ramaswamy, J. had dealt with this aspect of the matter and held thus : It is, therefore, settled law that all the trappings of the court need not necessarily be present in a particular case to bring the authority as a Tribunal but the essential postulate must be that it must be the creature of the statute and the State should delegate its inherent power of judicial review to the Tribunal; all or some of the trappings of a court may or not be present in a given case. The Tribunal should adjudicate the dispute between the parties before, it after giving reasonable opportunity to the parties, consistent with the principles of fair play and natural justice. It is not necessary that porkpie vigore it is enforceable. The mere fact that it is subject to further orders does not take away the effect of the decision or findings recorded thereunder. This Court in recent decision in Canara Bank v. Nuclear Power Corporation of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter should not be referred in accordance with the agreement between the parties for arbitration when the party seeking stay of the proceedings was and still remains ready and willing to do all things necessary to the proper conduct of the arbitration. In other words, on judicial satisfaction as to the contract between the parties and subject matter of the dispute as to the nature of the dispute, the judicial authority has been invested with a discretion to stay the proceedings or proceed with the matter pending before it. Similar power is available under Section 8 of the Arbitration and Conciliation Third Ordinance, 1996. The Act was enacted to provide for protection of the interests of consumers and for that purpose the Act has made provision for the establishment of Consumer. Councils and other authorities, viz., District Forums, State Commissions and National Commission for the settlement of consumers' disputes and for matters connected therewith. This Court in Lucknow Development Authority v. M.K. Gupta elaborately considered the scheme and object of the Act. It was held that object was to secure social purpose to promote the facilities in a comprehending manner f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Arbitration Act or the civil action in a suit under the provisions of the CPC. Thereby, as seen, Section 34 of the Act does not confer and automatic right nor create an automatic embargo on the exercise of the power by the judicial authority under the Act. It is a matter of discretion. Considered from this perspective, we hold that though the District Forum, State Commission and National Commission are judicial authorities, for the purpose of Section 34 of the Arbitration Act, in view of the object of the Act and by operation of Section 3 thereof, we are of the considered view that it would be appropriate that these forums created under the Act are at liberty to proceed with the matters in accordance with the provisions of the Act rather than relegating the parties to an arbitration proceedings pursuant to a contract entered into between the parties. The reason is that Act intends to relieve the consumers of the cumbersome arbitration proceedings or civil action unless the forums on their own and on their own and on the peculiar facts and circumstances of the particular case, come to the conclusion that the appropriate forum for adjudication of the disputes would be otherwise th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
