Cross objections under arbitration appeals survive only in a valid appeal and only for reliefs appealable under Section 39.

Cross objections are maintainable in an appeal under Section 39 of the Arbitration Act, 1940 because Section 41 applies the Code of Civil Procedure, including Order XLI Rule 22, subject to consistency with the Act. That right is confined to reliefs that could themselves be appealed under Section 39. Cross objections do not survive if the original appeal is itself incompetent or not maintainable in law; Order XLI Rule 22(4) preserves them only when an appeal is withdrawn or dismissed for default. An invalid appeal cannot extend limitation for a cross objection, which must independently satisfy competence and limitation requirements.

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Issues: (i) Whether cross objections are maintainable in an appeal under Section 39 of the Arbitration Act, 1940. (ii) Whether cross objections can survive and be heard on merits when the original appeal itself is incompetent or not maintainable.

Issue (i): Whether cross objections are maintainable in an appeal under Section 39 of the Arbitration Act, 1940.

Analysis: Section 39 confers a limited statutory right of appeal only against the orders specifically enumerated therein. Section 41 makes the Code of Civil Procedure applicable to all proceedings and appeals under the Act, subject to inconsistency with the Act. Order XLI Rule 22 of the Code therefore applies to appeals under Section 39. The right to take cross objections is part of the substantive right of appeal, while the form of cross objection is only procedural. A respondent may thus use cross objections where the matter complained of could itself have been raised by an appeal under Section 39.

Conclusion: Cross objections are maintainable in a Section 39 appeal, but only in respect of reliefs that themselves fall within Section 39.

Issue (ii): Whether cross objections can survive and be heard on merits when the original appeal itself is incompetent or not maintainable.

Analysis: Order XLI Rule 22(4) preserves cross objections only when the original appeal is withdrawn or dismissed for default. Where the original appeal is itself incompetent or not maintainable in law, there is no valid appeal to support the cross objections, and the notice in such an appeal cannot extend limitation for a cross objection. The cross objection can be heard only if it independently satisfies the requirements of a competent appeal and is otherwise within limitation. Since the respondents' appeal under Section 39 was not maintainable, the appellants' filing could not be treated as a cross objection and, independently, was time-barred.

Conclusion: Cross objections do not survive where the original appeal is incompetent or not maintainable.

Final Conclusion: The appeal failed because the supporting appeal was incompetent and the appellants' challenge could not be sustained either as a cross objection or as an independent appeal.

Ratio Decidendi: Cross objections under Order XLI Rule 22 are available in appeals under Section 39 of the Arbitration Act, 1940 only where there is a valid and competent appeal, and they cannot survive if the original appeal is itself incompetent or not maintainable.

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