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Hindustan Tea Company v. K. Sashikant Company, And Another

Hindustan Tea Company
v.
K. Sashikant Company, And Another

(Supreme Court Of India)

Civil Appeal No. 1846 (N) Of 1972 | 13-11-1986


RANGANATH MISRA, J.

1. This appeal is by special leave. An application was filed before the Calcutta High Court for appointment of a Receiver in regard to management of two Tea Estates by name Hattichera tea Estate and Subong Tea Estate. By the impugned order dated June 20, 1972, the High Court directed :

The Official Receiver is appointed Receiver in terms of the prayer (a) of the petition. Mr. Tara Chand Agarwalla of the respondent firm and Dineshbhai Patel of the petitioner firm are appointed joint managers under the Official Receiver to run and manage the day to day business at the two tea gardens.

During the pendency of this appeal on February 27, 1974, this Court made the following order :

The application is not opposed. Mr. G. K. Mitter, retired Judge of the Supreme Court is appointed as Umpire. Parties agree that they would pay the Umpires fee in equal share. No time limit is fixed for making the Award by Umpire.

Parties appeared before the Umpire and after protracted hearing of the matter, spread over several years the Umpire made his Award, dated June 30, 1982 and the same has now come before the court. The appellant file and application under Section 30 and 33 of the Arbitration Act praying to the court that the Award may be set aside either as a whole or in part keeping the several objections raised in the petition in view.

2. The Award is reasoned one. The objections which have been raised against the Award are such that they cannot indeed be taken into consideration within the limited ambit of challenge admissible under the schemes of the Arbitration Act. Under the law, the Arbitrator is made the final arbiter of the dispute between the parties. The Award is not open to challenge on the ground that the Arbitrator has reached a wrong conclusion or has failed to appreciate facts. Strong reliance was placed by the appellants learned counsel on an old Madras decision in Yogambal Boyee Ammani Ammal v. Naina Pillai Markayar. In our view, on the facts of this case challenge to the Award is not permissible by taking the stand that the Arbitrator acted contrary to the provisions of Section 70 of the Contract Act. In these premises the objection filed to the Award has to be rejected. We directed the Award to be made a rule of the court. The parties shall bear their own costs throughout.

Advocates List

For

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

Bench List

HON'BLE JUSTICE RANGANATH MISRA

HON'BLE JUSTICE S. NATARAJAN

Eq Citation

(1986) SUPPL. SCC 506

AIR 1987 SC 81

1987 GLH (1) 185

1987 (1) ARBLR 29 (SC)

JT 1986 (SC) 818

1987 (1) UJ 247

1986 (2) SCALE 756

LQ/SC/1986/449

HeadNote

the proceedings Arbitration and Conciliation Act, 1996 — Ss. 30 and 33 — Challenge to award — Impermissibility of — Held, Arbitrator is made final arbiter of dispute between parties — Award not open to challenge on ground that Arbitrator has reached wrong conclusion or has failed to appreciate facts — Contract Act, 1872 — S. 70 — Civil Procedure Code, 1908, S. 11 Specific Relief Act, 1963, S. 31