Om Finance Services vs Santosh Mahato & Anr.

The Court: Ms.Tutul Das (Singh), learned Counsel appearing on behalf of the award holder has relied upon an unreported Division Bench judgment of

this Court in GA No. 922 of 2017, APOT No. 89 of 2017 and EC No. 1285 of 2015 (Magma Fincorp Limited Vs. Ashok Kumar & Ors.) dated 13th

September, 2017, where the Hon’ble Division Bench had considered the aspect of service of award upon the judgment debtor.

In deciding the said application, the Hon’ble Division Bench has referred to Clause 9(b) of the arbitration agreement between the parties in the

said proceeding, Section 114 of the Evidence Act, Section 3 of the Arbitration and Conciliation Act and Chapter VI of the Indian Post Office Act,

1898.

Similar clause as that of 9(b) that was considered by the Hon’ble Division Bench is present in the instant arbitration agreement. The records

reveal that the envelopes said to contain the award dated 5th May, 2016 was forwarded by the Arbitral Tribunal by a letter dated 21st May, 2016.

The envelope was addressed to the respondents at the addresses mentioned in the arbitration agreement and proper stamps were affixed thereon. The

Arbitrator has also paid postal charges by affixing prepaid adhesive postage stamps and the postal article duly put in by registered post in the manner

provided in Chapter VI of the Indian Post Office Act, 1898. Articles were dispatched on 18th June, 2017 by registered post with AD.

Under such circumstances, it shall be presumed that the award has been duly served upon the judgment debtors. In view of the Hon’ble Division

bench judgment and having regard to the factual position as discussed above, in my view, the award holder is able to demonstrate service of the award

upon the judgment debtors.

The award which is a deemed decree is put to execution. It is submitted that the award is not under challenge. The award has now become

enforceable. In view of the aforesaid, let a notice be issued under Order 21 Rule 22(1) of the Code of Civil Procedure upon the judgment-debtors. The

matter is made returnable on 12.07.2018.