Law:

Section:

(a) Arbitration Act (X of 1940), S. 32-Bar to suit contesting arbitration agreement or ard-Award made in arbitration out of Court and not made rule of Court Parties entitled to sue or defend on basis of such award if it has been acted upon by parties by mutual consent. Section 32 of the Arbitration Act does not, debar a defendant in a suit from setting up a plea that an unfiled award which had been fully performed by him is a complete answer to the plaintiff's claim which was the subject-matter of the award. Such a defence 'is not "founded on the plea that there is an award which bars the suit, but that the parties had by mutual agreement settled the dispute and that the agreement and the subsequent actions of the parties are binding." The defendant in such a case does not seek to obtain any decision upon the existence, effect or validity of the award but merely seeks to assert that the claim sought to be set up by the plaintiff has already been satisfied by the mutual Consent of the parties. There can be no doubt that where the parties have referred their disputes to a domestic forum that forum may decide those disputes either by adjudicating upon them or it may decide upon the basis of the consent of the parties but the decision of the forum whether by consent or in invitum will be an award and not a mere compromise or agreement which can be enforced allunde. But if the award has been made in an arbitration out of Court and the award has neither been filed nor made a rule of Court then the parties will be entitled to sue or defend on the basis of that award if it has been accepted and acted upon by the parties by mutual consent. Muhammad Yousaf v. S. Haji Muhammad Hussain Rowther A I R 1964 Mad. 1 and Kashinathea Yamosa Kabadi, etc. v. Naraingea Bhaskarea Kabadl, etc. A I R 1961 S C 1077 ref. (b) Arbitration Act (X of 1940), S. 47-Provisions of Act applicable to all "arbitrations"-Dispute between parties referred to a third person for settlement-No written submission or reference to such person-Question, whether there was arbitration and parties intended such persons to act as arbitrator could be resolved by gathering intention of parties from facts and…

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