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Uganda Judgment

East African Court of Appeal

Sachania v Ramji (Civil Case No. 148 of 1933.) [1934] EACA 22 (1 January 1934)

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Source document

01

Holding and result

The court held that the application to set aside the award was barred by limitation under Article 158 of the Indian Limitation Act, as the relevant period runs from the date the award is submitted to court, not the date it is opened. The delay in opening the award was due to the plaintiff's own failure to pay the ordered costs, and the court found no merit in the argument that the limitation should run from the date of opening. Additionally, the court found no grounds for remission of the award under Order XLIII Rule 14, as there was no evidence that the award left matters undetermined, was indefinite, or contained apparent illegality. The omission to file ancillary documents with the award was not sufficient ground for remission, and any challenge on that basis should be made under Rule 15(1)(a) for setting aside the award, not for remission. The application was therefore dismissed with costs.

Court disposition

application dismissed with costs

Orders

  • The application to remit or set aside the award is dismissed.
  • Plaintiff to pay costs of the application.

02

Material facts

Parties

Damodardas Waghji Sachania

Plaintiff Counsel: Mangat

Ramji Laxman Kargasthala

Defendant Counsel: Schwartze

Amounts and remedies

  • Umpire's Costs Ordered to Be Paid: KES 1,000

03

Procedural history

  1. Posture

    Civil Case / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
Mr. Mangat, for the plaintiff, argued that the umpire's award should be remitted for completion or, alternatively, set aside. He contended that certain documents and evidence ancillary to the award were not filed with the award, and that the plaintiff could not apply to set aside the award until its terms were known, as the award was not opened until 21-4-34. He asserted that the limitation period should run from the date of opening the award.
Respondent
Mr. Schwartze, for the defendant, argued that Order XLIII Rule 14 does not apply to the remission of the award in this case and that the application to set aside the award is out of time under Article 158 of the Indian Limitation Act. He maintained that the date of opening the award is immaterial and that time runs from the date the award is submitted to court.

05

Court’s reasoning

  1. 01

    Article 158, Indian Limitation Act; Russell on Arbitration and Awards, 11th edition, p. 245

    Time for making an objection to an arbitration award runs from the date the award is submitted to court, not the date of opening.

  2. 02

    Order XLIII Rule 14, Civil Procedure Code

    Remission of an award by the court is only permissible where the award leaves matters undetermined, is indefinite, or contains apparent illegality.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the application to set aside the award was barred by limitation under Article 158 of the Indian Limitation Act, as the relevant period runs from the date the award is submitted to court, not the date it is opened. The delay in opening the award was due to the plaintiff's own failure to pay the ordered costs, and the court found no merit in the argument that the limitation should run from the date of opening. Additionally, the court found no grounds for remission of the award under Order XLIII Rule 14, as there was no evidence that the award left matters undetermined, was indefinite, or contained apparent illegality. The omission to file ancillary documents with the award was not sufficient ground for remission, and any challenge on that basis should be made under Rule 15(1)(a) for setting aside the award, not for remission. The application was therefore dismissed with costs.

Obiter and limits

  • The proper procedure to recover umpire's costs is by action, not by suspending the opening of the award.
  • Non-conformity with the latter portion of Rule 10 is not ground for remission under Rule 14.
  • A similar point was previously decided, confirming that the date of opening is immaterial for limitation purposes.

Court disposition

application dismissed with costs

  • The application to remit or set aside the award is dismissed.
  • Plaintiff to pay costs of the application.

Source and reliance status

East African Court of Appeal

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Source document

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Judgment text

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Source document

East African Court of Appeal

Judgment

[1934] EACA 22

ORIGINAL CIVIL.

Before GAMBLE, Ag. J.

DAMODARDAS WAGHJI SACHANIA (Plaintiff)

$v.$

RAMJI LAXMAN KARGASTHALA (Defendant).

Civil Case No. 148 of 1933.

Arbitration—Article 158, Indian Limitation Act—Limitation.

$Held$ (11-5-34).—That for the purpose of making an objection to an award, time runs from the date the award is submitted to Court. The date of opening the award is immaterial.

Mangat for Plaintiff.

Schwartze for Defendant.

ORDER.—Mr. Mangat is seeking that the umpire's award be remitted to the umpire for completion or in the alternative that the award may be set aside.

Mr. Schwartze contends with regard to the first prayer that Order XLIII Rule 14, which deals with the remission of an award by the Court does not apply and as regards the alternative prayer that it is out of time. I have carefully considered the provisions of Order XLIII, Rule 14 (a), (b) and (c) and am not satisfied that on the facts deponed to in the affidavit this is a fit case for the remission of the award. It is not contended that the award has left any matters undetermined or has gone outside the terms of the submission as specified in sub-section (a). It is not claimed that the award is so indefinite as to be incapable of execution under sub-section $(b)$ . Nor can I find nor is it contended that there is any illegality in the award which is apparent on the face of it.

All the affidavit alleges is; that certain documents and evidence ancillary to the award itself have not been filed with the award. These depositions should in accordance with Rule 10. be filed along with the award. Such an omission might be valid ground for moving under Rule 15 $(1)$ $(a)$ that the award be set aside. I offer no opinion on this at the present stage. I am, however, satisfied that non-conformity with the latter portion of Rule 10, is not ground for remission under Rule 14.

I will now deal with the question whether the alternative part of the prayer to have the award set aside is barred by article 158 of the Indian Limitation Act.

Under that article application to set aside an award must he made within ten days of the date on which the award was submitted to Court. There is ample authority for holding that the Court has no power to extend or vary this period. In this suit the award was filed on 12-4-34 but this application was not made until 1-4-34, prima facie out of time.

An order was made that the envelope containing the award was not to be opened until plaintiff had paid Sh. 1,000 towards the umpire's costs. In my opinion that was not a correct order as the proper procedure to recover such costs is by action. This order also had the effect of suspending indefinitely the opening of the award as there was no sanction behind the order that the plaintiff should pay Sh. 1,000. In other words until the plaintiff should take it into his head to pay Sh. 1,000 the award remained unopened and inoperative. In order that the whole object of the submission to arbitration might not be stultified I had to vary the order of 18-4-34 and the award was in fact opened on $21 - 4 - 34$ .

Mr. Mangat points out that he could not apply to have the award set aside until he was aware of its terms and that as it was not opened until 21-4-34 he should have had ten days from that date in which to object.

There would be more force in this argument were it not for the fact that the non-opening of the award was due to the contumacy of Mr. Mangat's own client. He was ordered to pay Sh. 1,000 umpire's costs and even though this order was irregular, he can hardly be heard to complain now that he was unable to inspect the award. I observe that a precisely similar point was raised by Mr. Mangat in C. C. No. 104/33 when it was held by the present Acting Chief Justice, that the date of opening was immaterial and that time runs from the date the award. was submitted to the Court.

I propose to follow the decision in that case and I amconfirmed in my opinion by a reference to Russell on Arbitrationand Awards, 11th edition, at p.

245.

The application is dismissed with costs.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

C.C. No. 104/33 (decision by Acting Chief Justice)

Case cited

Russell on Arbitration and Awards, 11th edition, p. 245

Case cited

Article 158, Indian Limitation Act

Legislation

Legislation referenced in the available case record.

Order XLIII Rule 14, Civil Procedure Code

Legislation

Legislation referenced in the available case record.

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