MEER MUHAMMAD SHARIF vs Mirza MUHAMMAD ASHRAF AND 4 OTHERS
This civil revision petition was filed against an order of the trial court making an arbitration award a rule of the court without providing the petitioner an opportunity to file objections. The respondent had applied to make the award a rule of the court, and the petitioner was proceeded against ex parte. After the arbitrator filed the award, the trial court immediately made it a rule of the court based on the statements of the arbitrator and the respondent. The Lahore High Court addressed whether the revision petition was maintainable and whether the trial court erred in failing to issue notice of the filing of the award. The Court held that because no notice of the filing of the award was given, the petitioner was deprived of the opportunity to object, meaning the order did not fall under the appealable category of refusing to set aside an award under Section 39 of the Arbitration Act 1940. Consequently, a revision petition was competent. The Court ruled that Section 14(2) of the Arbitration Act 1940 mandatorily requires the court to give notice of the filing of the award to the parties to allow them to file objections within the 30-day limitation period under Article 158 of the Limitation Act 1908. The petition was accepted, and the case was remanded.
- Is a revision petition maintainable against an order making an award a rule of court where no notice of the filing of the award was ever issued to the affected party?
- Is it mandatory for a court to issue notice to the parties under Section 14(2) of the Arbitration Act 1940 after an arbitration award is filed?
- What is the limitation period for a party to file objections to an arbitration award after it is filed in court?
- Section 14(2), Arbitration Act 1940
- Section 39, Arbitration Act 1940
- Section 39(1)(vi), Arbitration Act 1940
- Article 158, Limitation Act 1908
' This petition calls in question an order making an award a rule of the Court without giving an opportunity to the petitioner to file objections to it.
2. The facts are that on an agreement to refer the matter to arbitration, Khadim Hussain Arbitrator made an award on the 9th February, 1971. The respondent, Mirza Muhammad Ashraf, filed a petition for making the award a rule of the Court on the 7th May, 1971, on which notice was directed to be issued to the petitioner. Since the petitioner did not put in appearance, he was directed to be proceeded against ex parte on the 30th October, 1971. For the first time an order was passed that day directing the Arbitrator to file the award. The award was filed on the next date i. e. 14th December, 1971. The learned tri Court recorded the statement of the Arbitrator who presented the award formally before the Court and it was exhibited as Exh. A/2. Muhammad Ashraf respondent appeared as A. W. 2 and stated that the award was acceptable to him. On the basis of these two statements, the learned trial Court ordered the award to be made a rule of the Court.
3. The first question in this case is whether the revision petition is competent. I am of the view that there can be no objection to the maintainability of this revision petition in view of the circumstances of this case. Section 39 of the Arbitration Act provides for orders which are appealable.. One of the categories of the orders is where it is against the order setting aside or refusing to set aside an award. If the learned trial Court had issued notice after the filing of the award to the petitioner about the filing of the. Award and had given him an opportunity of raising objection within the time fixed by the Limitation Act, the matte would have fallen within the clause
(vi) of subsection (1) of section 3 of the Arbitration Act and the judgment would have been appealable, since the order would have amounted to an order refusing to set aside an award. But in the present case, that opportunity was never afforded. In these circumstances, it cannot be said that the matter fell within the scope of clause (vi) of subsection (1) of section 39. The only other remedy is by revision petition which has been pursued by the petitioner.
4. On merits this petition must succeed since it was incumbent upon the Court to serve a notice upon the petitioner about the filing of the award under section 14 (2) of the Arbitration Act, which provides B that after the filing of the award the Court shall give notice to the parties of such filing.
This notice is given to afford an opportunity to the parties to raise objection, if any, within the period of limitation, i. e. 30 days a provided by Article 158.
5. The revision petition is accepted with costs, the order and decree is set aside and the matter is remanded to the learned trial Court to give an opportunity to the petitioner to file necessary objections. . Case remanded.
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