HARI SHANKAR, LAL versus SHAMBHUNATH PRASAD AND OTHERS

HARI SHANKAR, LAL versus SHAMBHUNATH PRASAD AND OTHERS

Notice to act under Rule 3 of First Schedule to Arbitration Act, 1940 cannot restart the four-month period if served after arbitrators have entered on the reference and four months have expired; the award made after the expiry is invalid unless time is extended by court.

Parties
Appellant: Hari Shankar Lal; Respondent: Shambhunath Prasad; Respondent: Respondent No. 2; Party to Arbitration Agreement: Rajwanti; Arbitrator: Respondent No. 3; Arbitrator: Respondent No. 4
Jurisdiction
India
Judgment Date
04 May 1961
Procedural Posture
Civil Appeal / Final Supreme Court Appeal by Certificate
Outcome
appeal dismissed
Legal Topics
Time Limit for Arbitral Award, Construction of Rule 3, First Schedule, Arbitration Act 1940, Extension of Time for Award
Arbitration Time Limit for Arbitral Award Construction of Rule 3, First Schedule, Arbitration Act 1940 Extension of Time for Award

Case Brief

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Parties

Hari Shankar Lal

Appellant

Shambhunath Prasad

Respondent

Respondent No. 2

Respondent

Rajwanti

Party to Arbitration Agreement

Respondent No. 3

Arbitrator

Respondent No. 4

Arbitrator

Procedural Posture

Civil Appeal / Final Supreme Court Appeal by Certificate

Legal Issues

  1. 1 Whether arbitrators can make an award after expiry of four months from entering on reference based on subsequent notice to act under Rule 3 of First Schedule to Arbitration Act, 1940

Ratio Decidendi

Notice to act under Rule 3 of First Schedule to Arbitration Act, 1940 cannot restart the four-month period if served after arbitrators have entered on the reference and four months have expired; the award made after the expiry is invalid unless time is extended by court.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs.
  • Award made by arbitrators held invalid due to expiry of limitation period.