AIR 1967 BOMBAY 300 ::1966 Mah LJ 1110 ::68 Bom LR 809

Bombay High Court

Hon'ble Judge(s): Gokhale , J

(A) Arbitration Act (10 of 1940) , S.12(2)(b), S.19, S.25 Proviso, S.39(1)(i)— Appealable orders - Order that arbitration agreement shall cease to have effect with respect to differences referred - Order is an order suspending arbitration and is, therefore, appealable. When the Court makes an order that a person is appointed to act as sole arbitrator in place of the person or persons displaced the arbitration agreement with respect to the differences which are previously referred to the arbitrator or arbitrators subsists, but only the arbitrator or arbitrators appointed under the agreement lose their authority by revocation. On the other hand, when the Court passes an order that the arbitration agreement shall cease to have effect with respect to the difference, referred, the arbitration agreement itself ceases to have effect with respect to that difference and in such an eventuality there is no question of the arbitration agreement subsisting with respect to the differences which had been referred to the arbitrator or arbitrators. That is to say, an order under S. 12 (2) (b) that the arbitration agreement shall cease to have effect with respect to the differences referred is one of the consequences of the leave granted by the court to revoke the authority of the arbitrator. In such a case there is no question of the arbitration agreement subsisting with res....