Arbitration Drafts

IN THE HIGH COURT OF JUDICATURE AT FORT WILLIAM IN BENGAL ORDINARY ORIGINAL CIVIL JURISDICTION In the matter of the Arbitration Act, 1940 and In the matter and Arbitration Agreement Dated.................... day of.................... 19.................... Between A. B. (state name, description and place of residence) and C. D. (state name, description and place of residence). or In the matter of Suit No..................... of 19.................... (Title of Suit) Upon reading the petition of.................... verified by an affidavit of .................... affirmed on the.................... day of.................... 19.................... and filed on the.................... day of.................... 19..................... issued upon the filing of the said petition and an affidavit of.................... of the due service thereof on the .................... day of.................... 19.................... both filed on the day.................... of.................... 19.................... and the arbitration agreement dated the.................... day of.................... 19..................... entered into by and between the plaintiff and the.................... defendant. And upon hearing.................... counsel for the plaintiff and.................... counsel for the defendant it is ordered that the said agreement be filed. And it is further ordered that following matter in different..................... namely, arising in this suit. Specified in the said agreement (State matters in difference) be referred for determination to X and Y, or in case of difference of opinion between them to the determination of Z, who is hereby appointed to be umpire. And it is further ordered that the said Arbitrators shall make and submit their award in writing together with all proceedings had, deposition recorded and exhibits filed before them on or before the.................... day of.................... 19.................... and in case of difference of opinions between the said arbitrators as the award they shall forthwith give notice of such difference to the said umpire who shall make and submit his award in writing together with all proceedings had, depositions recorded and exhibits filed before him within the day of.................... 19.................... and the parties are to be at liberty to apply from time to time as they may have occasion. Witness, etc. Registrar/Master

IN THE HIGH COURT OF JUDICATURE AT FORT WILLIAM IN BENGAL ORDINARY ORIGINAL CIVIL JURISDICTION(Title) (Suit No..................... of.................... 19..................... ) To The defendant abovenamed,.................... whereas the plaintiff abovenamed has on the.................... day of.................... 19..................... made an application which has been numbered and registered as Suit No..................... of.................... 19.................... for and order that the arbitration agreement dated this day of .................... of................... and entered into by and between the plaintiff and you the defendant be filed, you are hereby required under sub-section (3) of Section 20 of the Arbitration Act, 1940, being served with this notice, to appear before the Court on the.................... day of.................... 19.................... at.................... oclock in the fore noon to show cause why the said agreement should not be filed. Registrar/Master Dated.................... 19.................... CASE LAW Arbitrator has power and jurisdiction to grant preference interest in reference made after the coming into force of the Interest Act, 1978 (The Interest Act, 1978 came into force w. e. f. 19. 8. 1981).1 The arbitrator has a discretion to award pendente life interest under the law.2 The award can be touched only when there is glaring illegality or injustice in arriving at the conclusion by the Arbitrator.3 Claim for escalation of rates is not sustainable when there is no provision for it in contract the arbitrators award vis-a-vis that claim cannot be upheld.4 POWER TO AWARD PENDENTE LITE INTEREST Arbitrator can grant pendente life interest.5 LIMITATION Exclusion of period spent in pursuing arbitration proceedings not permissible when reference to arbitration was itself bad.6 INTEREST FOR PRE-REFERENCE PERIOD 1940 Act Interest for pre-reference period cannot be granted.7 POWERS OF ARBITRATOR Section 20 Arbitrator cannot assume any jurisdiction to award any amount towards escalation.8 1. Sudhir Brothers v. Delhi Development Authority, 1996 (1) C. C. C, 6 (S. C. ). 2. Union of India v. Sri Kedar Somani, 1996 (1) C. C. C. 205 (H. C. ). 3. State of U. P. v. Om Metals and Minerals (P) Ltd., 1996 (1) C. C. C. 41 (H. C. ). 4. Govt. of A. P. rep. by its Secretary Irrigation Department v. G. Kondala Rao (Dead) by L. Rs., 1996 (1) C. C. C. 73 (H. C. ). 5. State of Orissa v. Sudhakar Das, AIR 2000 SC 1294. 6. M/s. Jupitor Chit Fund (P) Ltd. v. Sri Shiv Narain Mehta, AIR 2000 SC 1295. 7. State of Orissa v. B. K. Routray, AIR 1999 SC (10). 8. State of Orissa v. Sudhakar Das, AIR 2000 SC 1294.

To, Shri................................ Dear Sir, Sub: Arbitration agreement dated.........................   You were appointed as an arbitrator in the disputes, which have arisen under the agreement dated…………………………between A and B, the parties to the contract and in pursuance of that agreement, the matters in dispute between A and B were referred to you vide our letter dated .......................   2. Please take notice that I hereby revoke your authority to arbitrate in the matters in dispute referred to you and I request you to prohibit from acting in the said arbitration. You are also hereby discharged under the said reference.   3. You are advised to return to me all the papers, documents and deeds submitted by me to you immediately. Place: ……………………… Yours faithfully, Date ......................... ………………………… Copy forwarded for information to Shri………………………… the claimant.