BANWARI LAL KOTIYA versus P.C. AGGARWAL

BANWARI LAL KOTIYA versus P.C. AGGARWAL

Where a signed arbitration agreement meets the requirements of section 2(a) of the Arbitration Act, 1940, and incorporates the relevant Stock Exchange Bye-laws, reference to arbitration under such an agreement is deemed consensual—no further fresh assent by both parties to the actual reference is required, and the resulting award is binding. The reference in this case was valid and not unilateral.

Parties
Appellant: Banwari Lal Kotiya; Respondent: P.C. Aggarwal
Jurisdiction
India
Judgment Date
08 May 1985
Procedural Posture
Civil Appeal / Appeal to Supreme Court From Delhi High Court Judgment Setting Aside Arbitral Award
Outcome
Appeal allowed
Legal Topics
Arbitration Agreement, Reference to Arbitration, Unilateral V. Consensual Reference, Binding Nature of Award, Interpretation of Arbitration Clauses
Arbitration Law Arbitration Agreement Reference to Arbitration Unilateral V. Consensual Reference Binding Nature of Award Interpretation of Arbitration Clauses

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Banwari Lal Kotiya

Appellant

P.C. Aggarwal

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court From Delhi High Court Judgment Setting Aside Arbitral Award

Legal Issues

  1. 1 Whether fresh assent of both parties is necessary for the actual reference to arbitration when the arbitration agreement conforms to section 2(a) of the Arbitration Act, 1940
  2. 2 Whether the reference to arbitration in this case was consensual or unilateral
  3. 3 Interpretation of Bye-laws 247 of the Delhi Stock Exchange

Ratio Decidendi

Where a signed arbitration agreement meets the requirements of section 2(a) of the Arbitration Act, 1940, and incorporates the relevant Stock Exchange Bye-laws, reference to arbitration under such an agreement is deemed consensual—no further fresh assent by both parties to the actual reference is required, and the resulting award is binding. The reference in this case was valid and not unilateral.

Court Disposition

Appeal allowed

Orders

  • Judgment and decree of the Delhi High Court are set aside.
  • Decree in terms of the Award passed by the trial Judge is restored.