9911796707
|
Home
Issues: Appeal against the judgment dismissing the application for setting aside an arbitration award made by the Bengal Chamber of Commerce. Grounds for setting aside the award: (1) Alleged void contract under the Forward Contracts (Regulation) Act, 1952, making the arbitration agreement void. (2) Arbitrators' alleged misconduct by not granting an adjournment and proceeding ex parte.
Analysis: 1. The dispute arose from a contract for the sale of jute between the appellant (seller) and the respondent (purchaser). The appellant claimed inability to dispatch the jute due to a fire, leading to a claim by the respondent for the price difference. The matter was referred to arbitration by the Bengal Chamber of Commerce. The appellant sought to set aside the award on grounds of the contract's alleged illegality under the Forward Contracts (Regulation) Act, 1952, and arbitrators' misconduct in not granting an adjournment. 2. The appellant abandoned the ground of the contract's illegality before the trial judge, focusing solely on the arbitrators' alleged misconduct. The appellant contended that the arbitrators proceeded ex parte without proper notice, rendering the award unsustainable. The court examined the validity of the arbitration proceedings in light of the appellant's absence on the first fixed date and the arbitrators' duty to give notice before proceeding ex parte. 3. The court considered precedents and the rules of the Bengal Chamber of Commerce regarding arbitration proceedings. It was noted that the first notice issued by arbitral courts of the Chamber required parties to appear on the specified date. The court distinguished cases where subsequent notices were required for ex parte proceedings from situations where the first date of hearing allowed arbitrators to proceed in the absence of parties who deliberately refused to attend. 4. The court upheld the trial judge's finding that the appellant's absence was deliberate and amounted to a refusal to attend. The court found the appellant's excuse for non-appearance to be false, with no supporting evidence presented. Given the circumstances, including the nature of the arbitration conducted by the Chamber and the appellant's conduct, the court concluded that the appellant could not challenge the ex parte award. 5. As the appellant's sole ground for appeal failed, the court dismissed the appeal with costs. The judgment affirmed the validity of the arbitration award made by the Bengal Chamber of Commerce, highlighting the importance of parties' compliance with arbitration procedures and the consequences of deliberate non-appearance during proceedings. Conclusion: The appeal challenging the arbitration award's validity was dismissed by the Calcutta High Court, emphasizing the significance of parties' adherence to arbitration rules and procedures. The court upheld the award, ruling against the appellant's claim of arbitrators' misconduct and affirming the legality of the arbitration proceedings conducted by the Bengal Chamber of Commerce.
|
