Law: Arbitration Act, 1940

Section: 12

(a) Arbitration-Reference by one partner of firm-Objec­tion to award by other partners-Firm not bound by award--­Referring partner not bound either personally. Unless all the interested partners of each firm had joined the reference, the firms would not be bound and even the submitting partners could not be held to the agreement. Of course, if the other partners had ratified the agreement it may become binding on the firm. Madangopal Radheylal v. Sanwaldas Madhavdas A I R 1948 Sind 79 and Abdul Ghani v. Siraj-ud-Din A I R 1939 Lah. 154 (S B) ref. Strangford against Green 85 E R 1041 and Bhagwan Manaji Marwadi v. Hiraji Premaji Marwadi A I R 1932 Bom. 516 (D B) distinguished (b) Arbitrator--Misconduct-Precipitately filing award, whether amounts to. Precipitately filing the award in Court, after the giving of the award, could not amount to misconduct for the purpose of vitiating the award. The subsequent conduct of the arbitrator after the giving of the award is not relevant except in so far as it may throw light on the working of his mind earlier. But where the arbitration had in addition proceeded ex parte against a party, precipitate action of this sort strengthened the inference that his bona fides in proceeding ex parte were open to criticism. The arbitrator in this case was held guilty of misconduct. Louis Dreyfus & Co. v. Tarachand Ghanshamdas, A I R 1926 Sind 242 (S B) ref. (c) Arbitration-Ex parte proceedings-Discretionary with arbitrator-Award, however will be set aside if reasonable cause for non-appearance is made out-Parties should be informed by one of the methods prescribed by S. 42, Arbitration Act (X of 1940). The power of the arbitrator to proceed ex parte is discre­tionary on proof that one party is deliberately avoiding appearance. If a reasonable excuse for not attending the appointment could be shown, the Court will set aside an award made by the arbitrator who has proceeded ex parte. The method of service of a notice by the arbitrator to a party, prescribed by section 42 of the Arbitration Act, 1942, is either personal service or despatch of a letter by registered post and a telegraphic notice is not one of the specified methods. Notice…

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