Law:

Section:

Arbitration Act (X of 1940)------Ss. 20, 30 & 39---Application for filing arbitration agreement in Court---Award, objection to---Making award rule of the Court--­Appeal---Respondent filed application under S.20 of Arbitration Act, 1940 seeking direction for filing of 'arbitration agreement in Trial Court and for initiating arbitration proceedings---Trial Court without deciding application, nominated two Arbitrators to give award---Arbitrators filed ward in Trial Court which was in favour of respondent to which objections were filed by the appellant---Trial Court overruled objections and made award the Rule of the Court---Trial Court had fell into error in proceeding to appoint Arbitrators without directing filing of agreement in court and without even deciding application filed under S.20 of Arbitration Act, 1940---Only after agreement had been filed that the Court could have ascertained whether dispute between the parties was covered by arbitration clause or not---After such finding Court could proceed to direct reference to arbitration in accordance with terms of arbitration agreement, but in the present case Court had straightaway proceeded to appoint Arbitrators and directed them to file the award which procedure was illegal and had vitiated all proceedings---Neither Court nor parties themselves could circumvent mandatory provisions of S.20(4) & (5) of Arbitration Act, 1940---High Court allowing appeal, set ,side decree/award and remanded case to Trial Court to decide afresh in accordance with law---Trial Court would proceed to decide question of ding arbitration agreement in first instance before making reference to Arbitrators. Suleman Haji Muhammad & Co. v: State Bank of Pakistan PLD 1960 (W.P.) Kar. 78; University of the Punjab v. Perfect Electric. Concern PLD 1980 Lah. 305 and Union of India v. Muhammad Usman AIR 1965 All. 269 ref. Muhammad Amin Lone, Asstt. A.-G., Punjab assisted by Mian Ghulam Hussain for Appellants. Riaz Karim Qureshi for Respondent. Date of hearing: 12th July, 2002. JUDGMENT Respondent on 16th December, 1982 filed an application under section 20 of the Arbitration Act, 1940 (hereinafter referred to as the Act) seeking a…

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