`Arbitrator has no power to file an award’

The arbitrator started his work after the firm filed its claim. The partnership opposed the claim and also stated its own claim against the firm. It seems that the firm did not take any objection to the jurisdiction of the arbitrator to decide a claim of an unregistered partnership arising from the contract between the parties. In any event, having invoked the arbitrator’s jurisdiction the firm would have found it difficult to challenge that very jurisdiction. The arbitrator gave an award in favour of the unregistered partnership and filed the award suo motu in the trial court. The court issued notice to both the parties about the filing of the award. At this stage the firm filed its objection that the proceedings to enforce the award in favour of an unregistered partnership were not maintainable. Its objection was based on Section 69(2) of the Partnership Act instituted in any court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown inthe Register of firms as partners of the firm. The trial court rejected this objection. The firm moved the high court by way of a revision. That too was rejected. Accordingly the firm appealed to the SC.

In the apex court the firm pointed out that the arbitrator had acted illegally in filing the award suo motu before the trial court. Under Section 14(2) the arbitrator had no power whatsoever to file an award in a court on his own. The court do so only at the request of a party to the arbitration agreement or at the request of anyone claiming under one of the parties to the arbitration agreement. He has also to file the award in the court if the court directs him. However, the partnership objected that this issue was not raised in the revision before the high court.