JUDGEMENT
Santosh Hegde, J. -
(1.)Leave granted.
(2.)A dispute which arose between the parties to these appeals came to be referred to arbitration as per the contract clause contained in the agreement between the parties. Before the arbitrator there was a claim and counter-claim by the parties. The arbitrator after considering the said claims by his award dated 26-10-1991 awarded a sum of Rs. 58,74,691.12 towards the claim of the appellant herein. He also awarded Rs. 8,82,923.60 towards the claim of the respondent herein. Deducting the said amounts awarded to the respondent from the amount awarded to the appellant the arbitrator directed the respondent to pay the balance amount of Rs. 49,91,767.52 within 30 days of the signing of the said award failing which he directed an interest @ 12% per annum. It is admitted from either side that as per the terms of the arbitration clause the same did not require the arbitrator to make a reasoned award.
(3.)A copy of the signed award was despatched to both the parties on 28-10-1991 by the arbitrator with a direction to file the same before an appropriate Court to make the same rule of the Court. The appellant herein on 29-10-1991 filed the award in the Court of the Additional Senior Sub-Judge, Sultanpur Lodhi, which Court issued a notice of the filing of the said award on 30-10-1991 to the respondent herein. Though the said notice mentioned the next date of hearing as 24-12-1991, as per Art. 119 of the Limitation Act the respondent had to file its objections if any, within 30 days from the service of notice. As per the postal endorsement received by the Court the said notice of the Court was sought to be served on the respondent on 6-11-1991 but the same was refused to be accepted hence a deemed service came to be effected. Consequently, the respondent became liable in law to file its objections on or before 6-12-1991 i.e. within 30 days from the date of deemed service. On 30-10-1991 along with a fresh notice by substituted service to the respondent herein, a notice was also issued to the arbitrator who was impleaded as second respondent to the application filed by the appellant to make the award a rule of the Court.
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