Supreme Court Reverses Dismissal of Arbitration Petition, Emphasizes Legal Ethics and Proper Notification

The Supreme Court allowed the appeal against the dismissal of a petition to set aside an arbitration award and the subsequent dismissal of a restoration application by the High Court. The Court emphasized the importance of ethical standards in the legal profession and noted concerns about unethical practices. The Court highlighted the need for proper notification to parties before dismissing petitions in default. The orders of the single Judge and Division Bench were set aside, directing the High Court to hear and decide the arbitration petition on its merits without costs.

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Issues involved: Appeal against the dismissal of petition to set aside an arbitration award due to default and subsequent dismissal of restoration application.

Summary:
1. The appeal arose from the High Court's order dismissing the petition to set aside an arbitration award and the subsequent dismissal of the restoration application. The Division Bench also dismissed the appeal in limine.

2. The petition for setting aside the award was heard by a Judge of the Bombay High Court. The advocate representing the petitioner sought an adjournment but the petition was dismissed in default as neither counsel nor the petitioners were present. The application for restoration was also dismissed. The Judge expressed concerns about unethical practices in the legal profession.

3. The Supreme Court agreed with the Judge's observations on legal ethics and emphasized the need for introspection within the legal profession to prevent commercialization and uphold ethical standards.

4. It was noted that when the advocate withdrew from the case, the petitioners were not present in court, and there was no evidence of whether they were notified of the hearing. The Court felt that fresh notice should have been sent, and the party should not be penalized.

5. The appeal was allowed, and the orders of the single Judge and Division Bench were set aside. The High Court was directed to hear and decide the arbitration petition pending before it on merits without costs.

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