SC - Chart 1 - Arbitration Judgements

ARBITRATION CHART 1
Shared by: Advocate Mahesh Vaswani,

Mumbai, Mobile No. 9821610888
Sr. CITATION LAW POINTS AND RELEVANT PARA

No.
1. Ramrao Vs. Narayan, The nominee of the Registrar acting under Section 96 of the
AIR 1969 SC 724: Maharashtra Co-operative Societies Act, 1961 performs the
(1969) 1 SCC 167 functions substantially of an arbitrator to whom a dispute is
referred for adjudication. He is required to act judicially, i.e.
fairly and impartially, but the obligation to act judicially will
not necessarily make him a Court within the meaning of section
195 of the Cr PC. The position of a nominee of the Registrar is
analogous to that of an arbitrator designated under a statutory
arbitration to which the provisions of section 47 of the
Arbitration Act, 1940 apply
2. Security and Finance An authority holding an inquiry in good faith in exercise of the
(P) Ltd Vs. Dattatraya powers vested in it by a statute is not guilty of contempt of
Raghav Agge, Court, merely because a parallel inquiry is imminent or
AIR 1970 SC 72 : pending before a Court. To constitute the offence of contempt
(1969) 2 SCR 668 of Court, there must be involved some act done or writing
published calculated to bring a Court or a Judge of the Court
into contempt or to lower his authority or something calculated
to obstruct or interfere with the due course of justice or the
lawful process of the Court.
Where the proceedings are pending with the arbitrator and the
party also files the civil suit but the arbitrator does not stop the
proceedings in spite of receiving the notice in the institution of
the civil suit, he does not commit contempt of Court. Even on
the assumption chat these conditions were satisfied the only
effect is chat the further proceedings before the arbitrator after
the receipt of the notice are rendered invalid and there is no
prohibition under section 35 of the Arbitration Act, 1940
requiring the arbitrator not to carry on the arbitration
proceedings after the receipt of notice.
3. Bal Kishan Das Vs. There was an arbitration agreement between the petitioner and
PC Nayar, the respondent in the year 1971 for procurement of "paddy".
AIR 1991 SC 1531 : One of the clauses of the agreement was that a shortage to the
1991 SCC (Cr) 1055 extent of 1.25 kgs. per qtl. of "paddy" procured should be
permitted and beyond that shortage the petitioner would be
liable for payment of penalty at the rates prescribed in the
agreement. On physical verification by the staff of Civil
Supplies/Food Corporation, a huge shortage was found in the
total quantity of "paddy" procured, in respect of which
arbitration proceedings were started. Thereafter, on an
application by the respondent, a case was filed under section
406, IPC and summons was issued to the petitioner. The
petitioner sought quashing of the said criminal complaint.
Held: There was an arbitration proceeding and further the

matter was pending for more than 17 years. Having regard to
all the circumstances, particularly that the matter is purely of a
civil nature, the proceeding pending under section 406, IPC
were to be quashed.
4. Trisuns Chemical The provision incorporated in the agreement for referring the
Industry Vs. Rajesh disputes to arbitration cannot be an effective substitute for a
Agarwal, criminal prosecution when the disputed act is an offence.
AIR 1999 SC 3499: Arbitration is a remedy for affording reliefs to the party affected
(1999) 8 SCC 686 by breach of the agreement but the arbitrator cannot conduct a
trial of any act which amounted to an offence albeit the same
act may be connected with the discharge of any function under
the agreement. Hence, those are not good reasons for the High
Court to axe down the complaint at the threshold itself. The
investigating agency should have had the freedom to go into
the whole gamut of the allegations and to reach a conclusion of
its own.
5. Manohar Lal Vs. Arbitrator is not a Court within the meaning of Section 195 of
Vinesh Anand, CrPC.
AIR 2001 SC 1820 :
(2001) 5 SCC 407
6. SN Palanitkar Vs. Merely because there is an arbitration clause in the agreement,

State of Bihar, that cannot prevent criminal made prosecution against the
AIR 2001 SC 2960: accused if an act constituting a criminal offence is made out
2001 Cr LR (SC) 751 even prima facie.

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ARBITRATION CHART 1

Shared by: Advocate Mahesh Vaswani,

Sr. CITATION LAW POINTS AND RELEVANT PARA

Held: There was an arbitration proceeding and further the

6. SN Palanitkar Vs. Merely because there is an arbitration clause in the agreement,

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