Law: Arbitration Act (X of 1940)

Section: 30

(a) Arbitration Act (X of 1940), S. 30-Arbitrator, duties of--- Parties must be given reasonable opportunity to know case against them-Right of hearing presumed unless dispensed with in terms of reference-Award based on secret enquiries behind back of parties-Vitiated. Although the arbitrator is allowed considerable latitude in the procedure to be followed by him at the hearing, it is his paramount duty to afford the parties a reasonable opportunity to know the case against them. He cannot condemn a party without letting him know the case. If he makes an award without com plying with this elementary principle of natural justice, he does so at the risk and peril of award being set aside on grounds of misconduct. It has been repeatedly held that unless the terms of reference dispense with holding an enquiry, the right of hearing is to be presumed. In any case, the arbitrator cannot hold secret enquiries behind the back of the parties and if he does so the award will be vitiated. Municipality of Ahmedabad v. Ravjibhai Bhailal Contractor A I R 1935 Bom. 127; Bhafya Raj Kishore Lal v. Jageshwar Dayal A I R 1931 All. 276; Neba Ram v. Khota Ram and another A I R 1928 Lah. 550; Ram Chand and another v. Buta Ram arid others A I R 1931 Lah. 65(1); Ram Chandar and another v. Hans Ram A I R 1931 Lah. 111 and Allah Bakhsh Gabole v. Razia Begum P L D 1960 Kar. 455 rel. (b) Arbitration Act (X of 1940), Ss. 30 & 33-Award challeng ed on grounds of failure of Arbitrator to take evidence-Award reciting that parties were heard before it was given-Proper course arbitrator to be summoned as Court witness. S. M. Fazail & Co. v. Overseas Cotton Co. P L D 1959 Kar. 320; Leiserach v. Schalit (1934) 2 K B 353 and Muhammad Keramat Ali & Co. v. Amin Jute Mills Ltd., Chittagong P L D 1961 Dacca 452 rel. Date of hearing: 11th November 1969.   JUDGMENT M. HAYAT JUNEJO, J.----This is an appeal from the judgment of a learned Single Judge of this Court whereby the learned Judge dismissed the objections of the appellants under section 30 of the Arbitration Act, thereby refusing to set aside the award. 2. It arises in the following circumstances. The appellants filed a suit for…