| Case ID |
42f5b23f-1596-45ac-a05e-40bd41604f78 |
| Body |
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| Case Number |
Suit No. 46 of 1989 |
| Decision Date |
Sep 29, 1991 |
| Hearing Date |
Sep 24, 1991 |
| Decision |
The court set aside the award made by the arbitrator on the grounds of procedural irregularities and violations of natural justice. It was determined that the arbitrator acted improperly by proceeding ex parte without giving due notice to the defendants. The court highlighted that the arbitration agreement specifically required the arbitrator to act in his personal capacity, not on behalf of a firm, which was not adhered to. The defendants were prejudiced as they did not receive adequate notice of the proceedings or a copy of the plaintiff's claim, thereby violating their right to a fair hearing. The court emphasized the importance of adhering to principles of natural justice in arbitration proceedings. |
| Summary |
In the case of Memon Medical vs. Messrs Bantva Housing Enterprises, the Sindh High Court addressed significant procedural issues concerning arbitration under the Arbitration Act of 1940. The case arose from a dispute over a construction contract where the plaintiffs sought an arbitration award from a sole arbitrator who was to act in his personal capacity. However, the plaintiffs incorrectly initiated arbitration proceedings addressed to the firm associated with the arbitrator, leading to a challenge by the defendants concerning the validity of the arbitration process. The court found that the arbitrator committed misconduct by not providing proper notice to the defendants and proceeding ex parte. The ruling underscored the necessity for arbitrators to maintain impartiality and uphold natural justice principles, thereby setting a precedent for future arbitration cases. The decision serves as a critical reminder for legal practitioners about the importance of adhering to agreed arbitration procedures and ensuring fair representation for all parties involved. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
ABDUL RAHIM KAZI, J
|
| Lawyers |
Abdul Sattar Osman Memon,
Khalilur Rehman
|
| Petitioners |
MEMON MEDICAL
|
| Respondents |
Messrs BANTVA HOUSING ENTERPRISES
|
| Citations |
1992 SLD 794,
1992 CLC 1093
|
| Other Citations |
Halsbury's Laws of England, 4th Edn. V. II, p. 306 para 590,
Pratapsing v. Kishanprasad & Company Limited AIR 1932 Bom. 68,
Khan Bahadur Allah Bakhsh Gabol v. Mst. Raziz Begum PLD 1960 Kar. 455
|
| Laws Involved |
Arbitration Act (X of 1940)
|
| Sections |
17,
13
|