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1905 DIGILAW 114 (ALL)

Rahim Bakhsh v. Ram Nath

1905-05-23

BANERJI, RICHARDS

body1905
JUDGMENT : BANERJI, J. 1. This is an appeal from an order of remand made under section 562, clause (f), under the following circumstances: The plaintiff-appellant brought a suit in the Court of the Subordinate Judge to recover Rs. 800 for principal and Rs. 300 for damages. The matter was referred to arbitration by consent of parties, and the arbitrator made an award. Objections were taken, to the award, but they were over-ruled by the Court, and a decree was made in accordance with the award. The decree affirmed the award granting the plaintiff Rs. 800. The defendant appealed and one of the grounds of appeal was that the award was not a valid award in law. During the pendency of the appeal the parties, at the recommendation of the Judge, as the learned Judge says, and apparently being influenced by it, agreed to refer the matter again to a fresh arbitration. The arbitrators were nominated by the parties and an order was made accordingly, This arbitration resulted in nothing, the Court holding that the award could not be sustained. 2. Thereupon the appellate Court remanded the case to the court of first instance for trial on the merits. It is to be regretted that, as the learned Judge found that the first award was a good award in law; he did not dismiss the appeal at once, but allowed the parties to embark in further litigation by referring the dispute to fresh arbitration. If he had dismissed the appeal the difficulty which has now arisen would not have occurred. However, we are of opinion that the fact that the parties by consent agreed to refer the matter to fresh arbitration, had the effect of setting aside the decree and the award upon which the decree was founded. Mr. Durga Charan has argued that the court had no jurisdiction to make an order of reference to fresh arbitration, and that consequently the decree made by the Court of first instance must be held to have stood good. We cannot accede to this contention, It has been held by a Full Bench of this Court that if the award is not a valid award in law, an appeal lies notwithstanding the provisions of section 522 of the Code of Civil Procedure. 3. We cannot accede to this contention, It has been held by a Full Bench of this Court that if the award is not a valid award in law, an appeal lies notwithstanding the provisions of section 522 of the Code of Civil Procedure. 3. Whether in this case the award was a valid award or not, was a question which arose in the Appellate Court. Before that question was determined, the parties agreed, for that we must take to be the effect of submission to fresh arbitration, that the decree and award should be set aside and should be regarded as no longer subsisting. Consequently the appellate court had jurisdiction either to try the case on the merits or to refer it again to arbitration by consent of parties. It adopted the latter course. But that arbitration proved infructuous, Consequently the only course left to the court, as both the parties here admit, was to remand the case to the court of first instance for trial upon the merits. The appeal therefore fails and is dismissed with costs.