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Dinasari Limited v. Hussain Ali And Sons And Another

Dinasari Limited
v.
Hussain Ali And Sons And Another

(High Court Of Judicature At Madras)

Appeal Against Order No. 232 Of 1950 | 04-01-1951


GOVINDA MENON, J.

(1) THE written agreement on which the applt. relies is not admitted by the resp. It is not an agreement as contemplated Under Section 2 (a), Arbitration Act. It has been held by Kania J. (as he then was) in Shriram Hanutram v. Mohanlal and co. ,. L. R. (1940) Bom. 249 at p. 253 that the existence of an admitted agreement is a necessary pre-requisite for an arbitrator undertaking to decide the dispute. Here in this case the written agreement is denied and it is not open, therefore, to the arbitrators to decide whether the agreement as such exists or not. If the arbitrators have no jurisdiction to decide that point, it necessarily follows that they are not competent to function as well. In such circumstances the suit cannot be stayed Under Section 34, Arbitration Act. The decision of the lower Ct. is correct and the appeal is dismissed with costs.

Advocates List

For the Appearing Parties N. Rajagopalan, S.V. Narayana Iyer, T.R. Ramachandran, V. Srinivasan, Advocates.

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE MR. JUSTICE GOVINDA MENON

HON'BLE MR. JUSTICE CHANDRA REDDI

Eq Citation

(1951) 1 MLJ 476

AIR 1951 MAD 879

LQ/MadHC/1951/12

HeadNote

Arbitration Act, 1940 — Ss. 2(a) and 34 — Jurisdiction of arbitrator — Existence of agreement — Held, existence of an admitted agreement is a necessary pre-requisite for an arbitrator undertaking to decide the dispute — If the written agreement is denied, it is not open to the arbitrators to decide whether the agreement as such exists or not — If the arbitrators have no jurisdiction to decide that point, it necessarily follows that they are not competent to function as well — Arbitration and Conciliation Act, 1996, S. 11