1936 (11) TMI 22 - HC - Companies Law

Summary

Issues:
1. Delay in arbitration proceedings.
2. Jurisdiction of arbitrators under Article 113 of the Articles of Association.

Delay in Arbitration Proceedings:
The Madura Mills Co. Ltd. filed a petition in the District Court of Madura seeking to revoke a submission to arbitration due to undue delay in the proceedings. The District Judge acknowledged the delay but decided to extend the time for making the award, exercising discretion under section 12 of the Arbitration Act. The court has the power to enlarge the time for making an award, even if not expressly requested by a party. The decision to grant an extension was within the court's discretion, considering the labor already invested in the arbitration process.

Jurisdiction of Arbitrators under Article 113:
The key issue revolved around the jurisdiction of the arbitrators under Article 113 of the Articles of Association. The respondent, a member of the company, had a dispute with the company regarding the transfer of shares and related matters. The court analyzed whether the dispute was with the company or its managers, as per the specific provisions of the Articles of Association. It was established that the dispute was against the company, not its managers, as the respondent sought damages from the company for its actions. The court held that the respondent's submission to arbitration was ultra vires Article 113, as it did not fall within the purview of disputes meant for arbitration under the said Article. Therefore, the court allowed the Civil Revision Petition, granting the petitioner the right to revoke the submission to arbitration.

This judgment clarifies the court's authority to decide on the revocation of a submission to arbitration based on jurisdictional grounds, emphasizing the importance of adherence to the specific provisions of the Articles of Association in such matters. The court's analysis of the dispute's nature and the proper party against whom the claim is made played a crucial role in determining the validity of the arbitration submission.