TMI Blog2018 (4) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, even the sum and substance of the highly belated application dated 29.01.2000 for commencement of proceedings de novo clearly shows that it was not asking for re-hearing/re-recording of the evidence but was actually requesting for review of the order of the two Arbitrators. From the above, there is no doubt that the conduct of the appellant-Company amounts to waiver and the application filled on 29.01.2000 is nothing but trying a last armory to turn the case around. The Umpire was right in dismissing the said application. Appeal dismissed. - Civil Appeal No. 3776 of 2018 (Arising out of Special Leave Petition (C) No. 558 of 2014) - - - Dated:- 13-4-2018 - Mr. R.K. Agrawal And Mr. R. Banumathi JJ. For the Petitioner(s) : Mr. Pramod B. Agarwala, AOR For the Respondent(s) : Ms. Prerna Mehta, AOR JUDGMENT R.K. Agrawal, J. 1) Leave granted. 2) The present appeal is directed against the final judgment and order dated 22.10.2013 passed by the High Court of Delhi at New Delhi in FAO (OS) No. 211 of 2007 whereby a Division Bench of the High Court dismissed the appeal filed by the appellant herein while upholding the order dated 17.04.2007 passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007, substantially rejected the objections to the Award and made a Rule of the Court with slight modifications. Learned single Judge also observed that the appellant-Company failed to satisfy that there was any serious endeavour for getting the evidence recorded again before the Umpire and waived the right of de novo trial by conduct. (g) Aggrieved by the judgment and order passed by learned single Judge of the High Court, the appellant-Company preferred an appeal being FAO (OS) No. 211 of 2007 before a Division Bench of the High Court. The Division Bench, vide judgment and order dated 22.10.2013, dismissed the appeal. (h) Aggrieved by the judgment and order dated 22.10.2013, the appellant-Company has preferred this appeal by way of special leave before this Court. 4) Heard Mr. Basava Prabhu S. Patil, learned senior counsel for the appellant-Company and Mr. Dhruv Mehta, learned senior counsel for respondent-Company and perused the records. Point(s) for consideration :- 5) The only point for consideration before this Court is whether an Umpire has to hear the matter de novo on a Reference or from the stage of disagreement between the Arbitrators? Rival con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught is vague. The application was moved when the hearing before the Umpire had already started and the claimant had concluded his arguments. The very first application for the same was filed on 29.01.2000 in spite of the fact that the first hearing before the Umpire took place on 24.04.1999 which got dismissed by a detailed order categorically recording that the Umpire cannot sit over or review the order of the Arbitrators which was unanimous and the application was a belated application with mala fide intentions. 10) Learned senior counsel further submitted that the understanding and interpretation of Article 4 has to be in consonance with reason and logic, meaning thereby, the stage at which the Arbitrators disagree would be the stage at which the Umpire commences upon and proceeds with the reference. Therefore, the Umpire is not duty bound to record the same evidence all over again, more so, when both the parties were given ample opportunities for presenting their case. Learned senior counsel further submitted that the Umpire, vide Award dated 21.02.2000, has categorically noted that the appellant-Company unduly delayed the proceedings and has specifically mentioned the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Umpire with regard to the methodology and modalities to be adopted for reaching a just and fair conclusion. It is trite to say that an Arbitrator is bound to observe the principles of natural justice and conform to the fundamentals of judicial procedure. It is his duty to afford a reasonable opportunity to the parties concerned. However, it would also be illogical to contend that the Umpire has to start de novo ipso facto . The very essence of the law of arbitration is to settle the matter efficiently in a time bound manner. Hence, when the Umpire enters upon a Reference and replaces the arbitrators, he is needed to review the evidence and submissions only on those matters about which the arbitrators have disagreed unless either party applies for the rehearing of the evidence of the parties or their witnesses. The Umpire can surely go through the evidence recorded by the previous arbitrators but without being influenced by the opinion expressed by them in that regard and even the notes taken by previous arbitrators can be relied if there exist special provisions in the agreement permitting him to do so. However, if the party makes an application for de novo hearing, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation of the word de novo trial would result in undue hardship to the parties and will defeat the very purpose of the Act and render arbitration ineffective. 15) Hence, firstly, the word de novo hearing should be given a purposive interpretation and it should be understood as a fresh hearing of the matter on the basis of pleadings, evidence and documents on record. If the party wants to re-examine a witness or objects to the documents admitted, the Umpire is to hear the parties and decide the application in the interest of justice. 16) Having held that the a party do have a right to call for de novo hearing subject to the waiver of the same by conduct, now comes the question whether in fact and circumstances of the present case the conduct of the appellant-Company amounts to waiver or not. It was contended that the appellant-Company has from the very beginning of the hearing before the Umpire had demanded de novo trial of the matter and in support of that it relied upon the communication dated 24.05.1999, 12.01.2000 addressed to the Umpire and application dated 29.01.2000 filed for de novo hearing of the matter. 17) However, having perused the records, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation. 18) Learned senior counsel for the appellant-Company contended on merits of the case, however, the law is well settled with regard to the scope and ambit of the jurisdiction of the courts to interfere with an arbitration award as has been settled in a catena of judgments of this Court and it would be sufficient to quote Ravindra Kumar Gupta and Company vs. Union of India (2010) 1 SCC 409 wherein it was held as under:- 9. The law with regard to scope and ambit of the jurisdiction of the courts to interfere with an arbitration award has been settled in a catena of judgments of this Court. We may make a reference here only to some of the judgments. In State of Rajasthan v. Puri Construction Co. Ltd. this Court observed as follows: 26. The arbitrator is the final arbiter for the dispute between the parties and it is not open to challenge the award on the ground that the arbitrator has drawn his own conclusion or has failed to appreciate the facts. In Sudarsan Trading Co. v. Govt. of Kerala it has been held by this Court that there is a distinction between disputes as to the jurisdiction of the arbitrator and the disputes as to in what way that jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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