| Content Provider | Supreme Court of India |
|---|---|
| e-ISSN | 30484839 |
| Language | English |
| Access Restriction | NDLI |
| Subject Keyword | 1940: s. 21 Arbitration Act |
| Content Type | Text |
| Resource Type | Law Judgement |
| Jurisdiction | India |
| Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 |
| Case Type | Appeal |
| Court | Supreme Court of India |
| Disposal Nature | Appeal Allowed |
| Headnote | Arbitration Act, 1940: s. 21 – Parties to suit may apply for order of reference – Dispute between the parties – Suit filed for the settlement of accounts – Thereafter, application by the respondent for appointment of Chartered Accountant-CA as Commissioner, to submit report after conducting audit of accounts – Appointment of CA – Pursuant thereto, submission of report by CA before the court stating the amount due and payable by the appellant to the respondent – Thereafter, objections by the appellant that CA was appointed as Commissioner u/Or. XXVI r. 9 and not as arbitrator u/ s.21 – Rejection of objections – Order appointing the CA as an arbitrator attained finality, and also upheld by the High Court – On appeal, held: Report of the Chartered Accountant is not an award and is to be treated as a report of a Commissioner appointed by the court u/Or. XXVI r. 11 – There is distinction between the scope and functions of an arbitral tribunal and a commissioner appointed u/Or. XXVI rr 9 and 11 – For submission to arbitration, there must be an arbitration agreement or an agreement in terms of s. 21 – Whereas the Commissioners are appointed by the court, may be with consent of the parties, or even when there is objection to the appointment – Pre-existing agreement or the requirement that the parties agree before the court, as is mandatory in case of arbitration, is not necessary when a court directs appointment of a commissioner – On facts, when the court appointed the CA who as an expert was required to give his opinion on the statement on accounts to facilitate and help the court to adjudicate and finally decide the suit – Instant application cannot be read as moved on a prior agreement or consensus for reference to arbitration as was not signed by the appellant – Raising no objection as to appointment of CA does not give rise to an affirmation that the appellant had agreed to his appointment as an arbitrator so as to substitute court jurisdiction –Moreover, the court always maintained its dominion over the subject matter of the suit – Thus, the order of High Court set aside – Code of Civil Procedure, 1908 – Or. XXVI r. 11. |
| Judge | Hon'ble Mr. Justice Sanjiv Khanna |
| Neutral Citation | 2022 INSC 553 |
| Petitioner | M.p. Rajya Tilhan Utpadak Sahakari Sangh Maryadit, Pachama, District Sehore And Others |
| Respondent | M/s. Modi Transport Service |
| SCR | [2022] 4 S.C.R. 647 |
| Judgement Date | 2022-05-11 |
| Case Number | 1973 |
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