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Applicability of Arbitration Act to Awards by Appellate Committees

Fox & Mandal Applicability of Arbitration Act to Awards by Appellate Committees

Heeralal Agarwalla & Co


Joakim Nahapiet & Co. Ld

Decided on April 27, 1927, [Last Heard on: 27.04.1927]

The case involves a contract dated November 6, 1925, wherein  A bought 3,000 bales of jute from B. The contract had an arbitration clause stating that disputes would be settled through arbitration, with an option for appeal to the Committee of the Calcutta Baled Jute Association if arbitrators disagreed. The core issue was whether an award from this Committee, acting as an appellate body over an umpire’s decision, could be filed under the Indian Arbitration Act. The High Court decided in the favour of Applicant, represented by Fox & Mandal that the award from the Committee could be submitted under the Arbitration Act, even though the Act didn’t mention appeal committees. They saw the contract as having two arbitration levels – first arbitrators and an umpire, then the Committee. The Committee acted like new arbitrators chosen by the parties, and their award was the final decision anticipated. As a result, the Committee’s award could be filed in court. The appeal was accepted, and the appellants were awarded costs.

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