Union of India vs Mohan Brothers

Whereas certain disputes arose between the parties out of a contract for construction of married accommodation at Pathankot, the matter was

referred to the Arbitrator. The Arbitrator, after entering into the reference and hearing the parties, passed the award. The award along with record

has been received.

Application under Section 30/33 of the Arbitration Act has been filed by Union of India, who is opposing the award. After the pleadings of the

parties three issues were framed. The Union of India was directed to file affidavits by way of evidence within six weeks on 16.11.2004. It seems

that despite various opportunities having been granted, affidavits were not filed and right to file the affidavits was closed on 19.05.2005 and the

case was directed to be listed for hearing.

I have heard the learned counsel for the parties.

The contention of Mr. Khajuria is that grounds for setting aside the award are contained in Section 30 of the Arbitration Act and the procedure for

setting aside the award is contained in Section 33. It is contemplated that determination of the validity of the award shall be decided by filing

affidavits in the shape of evidence. It clearly envisages that any challenge to an award, regarding the existence or validity thereof, shall be decided

by the Court on affidavits. Mere filing of objections under Section 3o would not be sufficient to question the award.

The other contention of Mr. Khajuria is that what is the effect in case a party refuses to give evidence when called upon by the Court.

Order 16 Rule 20 of the Code of Civil Procedure contemplates that if a party refuses to give evidence or to produce any document, the Court may

pronounce judgment against him or make such order in relation to the suit as it thinks fit.

It is not in dispute that Section 41 of the Arbitration Act makes the provisions of the Code of Civil Procedure applicable to the Arbitration

proceedings.

Applying this principle, since the Union of India has failed to lead any evidence in the shape of affidavits, as contemplated by Section 33 of the

Arbitration Act, the Court is well within its rights to pronounce the judgment against it.

In view of above position, the application filed by Union of India under Section 30 is, accordingly, dismissed and the award is made rule of the

Court. Claimants shall also be entitled to 6% interest from the date of decree till its realization.

Decree sheet be accordingly drawn.