KESHAVSINH DWARKADAS KAPADIA ETC. versus M/S. INDIAN ENGINEERING COMPANY

KESHAVSINH DWARKADAS KAPADIA ETC. versus M/S. INDIAN ENGINEERING COMPANY

Appointment of an umpire by arbitrators need not be conditional upon acceptance or consent of the umpire. The Arbitration Act, 1940 does not require such consent. The acceptance of office can be evidenced by conduct. Clause 6 of the arbitration agreement does not exclude operation of Para 4 of Schedule I. Disagreement between arbitrators and expiry of time for making award both permit umpire to enter upon reference.

Parties
Appellant: Keshavsinh Dwarkadas Kapadia; Respondent: M/s. Indian Engineering Company; Chetan Trading Company
Jurisdiction
India
Judgment Date
10 September 1971
Procedural Posture
Civil Appeal / Appeal From Bombay High Court Decision Under Section 33 of the Arbitration Act, 1940
Outcome
Appeals dismissed
Legal Topics
Appointment of Umpire, Consent for Umpire, Operation of Schedule I, Para 4, Arbitration Act, Disagreement of Arbitrators
Arbitration Appointment of Umpire Consent for Umpire Operation of Schedule I, Para 4, Arbitration Act Disagreement of Arbitrators

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Parties

Keshavsinh Dwarkadas Kapadia

Appellant

M/s. Indian Engineering Company

Respondent

Chetan Trading Company

Procedural Posture

Civil Appeal / Appeal From Bombay High Court Decision Under Section 33 of the Arbitration Act, 1940

Legal Issues

  1. 1 Whether arbitrators can validly appoint an umpire without obtaining consent of the appointee
  2. 2 Whether Clause 6 of the arbitration agreement excludes operation of Schedule I, Para 4 of the Arbitration Act
  3. 3 Whether expiry of time for making an award amounts to disagreement between arbitrators

Ratio Decidendi

Appointment of an umpire by arbitrators need not be conditional upon acceptance or consent of the umpire. The Arbitration Act, 1940 does not require such consent. The acceptance of office can be evidenced by conduct. Clause 6 of the arbitration agreement does not exclude operation of Para 4 of Schedule I. Disagreement between arbitrators and expiry of time for making award both permit umpire to enter upon reference.

Court Disposition

Appeals dismissed

Orders

  • Umpire Porus A. Mehta is granted three months from the date of service of this order to make the award.
  • Appellants to pay one set of hearing fee to the respondents.