TMI Blog1962 (9) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... and the stay of the suit is vacated and I order to proceed further with the suit. This order was confirmed in appeal, and aggrieved by this order the defendant has now come in revision. 2. It is contended that the Court should have follow-ed the provisions contained in Sections 9 and 10 of the Indian Arbitration Act, 1940, which will hereinafter be referred to as the Act, and that the learned Judge was wrong in passing an order which purported to be one under Section 25 of the Act. 3. The Learned counsel for the opponent contends that the order is perfectly correct in view, of the scheme of the Act. Chapter II of the Act deals with arbitration without intervention of a Court. Chapter III of the Act deals with arbitration with inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order superseding the arbitration under Section 19, it shall proceed with the suit. The order in question has obviously been, made under Section 25 of the Act. It is conceded by the learned counsel for both sides that the order in question has been passed Under Section 25 of the Act. In cases to which Chapter 4 is not applicable, the Court may order that the arbitration agreement shall cease to have effect with respect to the difference referred. This can be done under Section in (2) (b) of the Act in cases to which Chapter II is applicable. Under Section 19 of the Act also the Court has power to supersede arbitration in cases to which that section is applicable. 4. On this contention it is necessary to remember the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at afterlife suit has been filed, then the Court has to make a reference under Section 23 of the Act. That is the difference between suits filed after the arbitration agreement and suits in which the arbitration agreement is arrived at after the suit is filed. Where the arbitration agreement is arrived at after the suit is filed, the provisions of Chapter IV should be followed, but where the suit is tiled after the arbitration agreement, the provisions of section 34 of the Act should be followed and where they are followed the provisions of Chapter II would come Into operation, alter the suit has been stayed. 5. The provisions of Section 35 are also Important. Section 35 of the Act reads as follows:-- (1) No reference nor award sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attention to the provisions of Section 9 and without doing so passed an order under Section 25 of the Act, 7. It is true that the Court itself had appointed the arbitrators and issued a letter of authority to the arbitrators. The Court somehow got the impression that the provisions of Chapter IV should be followed, but the Court was wrong in doing so. In view of Section 34 of the Act and the stay of the suit under Section 34, the provisions of Chapter II should have been followed by the parties and the Court lost sight of this fact. 8. It is next contended that the Court has inherent power to pass the order in question. But where the Act is clear and where the Act does not contemplate an order under Section 25 of the Act but contempla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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