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1985 (4) TMI 335

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..... s fixed in the agreement of reference for giving the award and therefore Period of four months as prescribed in Clause 3 of the First Schedule attached to the Arbitration Act would be the statutory period for giving the award. 2. Some dispute did arise between the parties. The respondent, therefore, sent a notice on January 7, 1960 to the Superintending Engineer requesting him to accept his claim to the tune of ₹ 7,568 and give his award accordingly. The respondent claimed this amount of compensation broadly on two counts : (1) that the sub-Divisional Officer had got certain bridges demolished which according to the respondent had been constructed strictly in terms of the agreement, and (2) that the respondent had also been directe .....

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..... ing with this point the learned Judge observed : Nothing has been pointed out to me in the court during the course of the arguments is to how the arbitrator has misconducted himself and the proceedings. 6. The plea regarding delay in giving the award was rejected on the ground that the Respondent had been participating in the proceedings before the arbitrator even after the expiry of the prescribed period of limitation. 7. The respondent took the matter in appeal to the High Court. When the matter came up before, a learned Single Judge he referred the following two points for decision by a Division Bench on account of the importance of the question involved in the case and also on account of conflict of judicial opinion on the po .....

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..... r Article 133(1)(c) of the Constitution, as it then stood. The same points have been reiterated before this Court. Before dealing with the points involved it will be convenient to refer to the relevant provisions of the Arbitration Act. Section 3 reads ; 3. An arbitration agreement, unless a different intention is expressed therein, shall be deemed to include the provisions set out in the First Schedule in so far as they are applicable to the reference. 10. Section 28 reads : 28. (1) The court may, if it thinks fit, whether the time for making the award Ins expired or not and whether the award has been made or not, enlarge from lime to time the time for making the award. (2) Any provision in an arbitration agreement whereby .....

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..... g the arbitrator power to enlarge time shall be void and of no effect except when all the parties consent to such enlargement, lit is not open to arbitrators at their own pleasure without consent of the parties to the agreement to enlarge time for making the award. 14. In H.K. Wattal v. V.N. Pandya [1974]1SCR259 dealing with Section 28(1) of the Arbitration Act this Court observed : There is no doubt that the arbitrator is expected to make his award within four months of his entering on the reference or on his being called upon to act or within such extended time as the court may allow. Reading Clause 3 of the Schedule along with Section 28 one finds that the power to enlarge the time is vested in the court and not in the arbitrato .....

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..... g void. It is, therefore, clear that the arbitrator gets the jurisdiction to enlarge the time for making the award only in a case where after entering on then arbitration the parties to the arbitration agreement consent to such enlargement of time. 15. The next question that crops up for consideration is what will be the effect if a party to the arbitration took part in the proceedings before the arbitrator even after the expiry of four months, that is, the period prescribed for giving the award Some High Courts have taken the view that in such a situation the condition of four months period will be deemed to hove been waived. Such a view has been taken by the Allahabad High Court in Shombhu Nath v. Surja Dcvi AIR1961All180 . A learne .....

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..... ly emphasized that the Act has injuncted the arbitrator to give an award within the prescribed period of four month unless the same is extended by the court. The arbitrator has no jurisdiction to make an award after the fixed time. If the award made beyond the time is invalid the parties are not estopped by their conduct from challenging the award on the ground that it was made beyond lime merely because of their having participated in the proceedings before the arbitrator after the expiry of the prescribed period. 18. The policy of law seems to be that the arbitration proceedings should not be unduly prolonged. The arbitrator therefore has to give the award within the lime prescribed or such extended tune as the court concerned may in i .....

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