UNION OF INDIA versus OM PARKASH

UNION OF INDIA versus OM PARKASH

The court, after appointing an arbitrator under section 8(2) of the Arbitration Act, 1940, becomes functus officio and has no jurisdiction to refer disputes to the arbitrator; any such reference is without authority and any award made on such an invalid reference is a nullity and can be set aside as 'otherwise invalid' under section 30(c) of the Act.

Parties
Appellant: Union of India; Respondent: Om Parkash
Jurisdiction
India
Judgment Date
02 April 1976
Procedural Posture
Civil Appeal / Supreme Court Appeal by Certificate From Allahabad High Court
Outcome
Appeals dismissed
Legal Topics
Court's Powers Under Arbitration Act Section 8, Setting Aside Arbitral Awards for Invalid Reference, Role of Court in Arbitration Appointments
Arbitration Court's Powers Under Arbitration Act Section 8 Setting Aside Arbitral Awards for Invalid Reference Role of Court in Arbitration Appointments

Case Brief

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Parties

Union of India

Appellant

Om Parkash

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal by Certificate From Allahabad High Court

Legal Issues

  1. 1 Whether the court appointing an arbitrator under section 8(2) of the Arbitration Act, 1940, can further make an order referring disputes to the arbitrator
  2. 2 Whether an award can be set aside on the ground of invalidity of reference under section 30(c) of the Arbitration Act, 1940, and if 'otherwise invalid' includes invalid reference

Ratio Decidendi

The court, after appointing an arbitrator under section 8(2) of the Arbitration Act, 1940, becomes functus officio and has no jurisdiction to refer disputes to the arbitrator; any such reference is without authority and any award made on such an invalid reference is a nullity and can be set aside as 'otherwise invalid' under section 30(c) of the Act.

Court Disposition

Appeals dismissed

Orders

  • Awards challenged are set aside as nullities
  • One set of hearing fee; costs awarded