1987 (8) TMI 448 - SC - Indian Laws

Partnership Dispute Arbitration Upheld, Workers' Claims Sustained

The Supreme Court referred disputes between partners of Balasubramania Foundry to an Arbitrator, who published the award. Workers' claims for past dues ... - Issues involved: Disputes between partners of Balasubramania Foundry, appointment of Receiver, claims of workers for past dues, legal misconduct by arbitrator, errors in award, objections to award, setting aside the award, principles of arbitration.Disputes between partners and appointment of Receiver: The Supreme Court referred disputes between partners of Balasubramania Foundry to an Arbitrator due to legal proceedings in Coimbatore courts. The Arbitrator, Justice C.J.R. Paul, published the award on 3rd April, 1985. An application for the appointment of a Receiver was also directed to be proceeded with in the trial court.Claims of workers and objections: Workers' claims for past dues were referred for arbitration, with the Arbitrator filing the award in the Court. Allegations of legal misconduct by the arbitrator and errors in the award were raised. Workers claimed insufficient provision for their dues, but the Court found that adequate provisions had been made, dismissing objections to the award.Legal principles and setting aside the award: The Court reiterated principles of arbitration, stating that an award could only be set aside for errors on its face, not for mistakes of fact. The Court found no legal errors apparent on the face of the record and dismissed objections to the award. The award was made the rule of the Court, with no interim interest but interest on judgment at 9%.Conclusion: The objections to the award were dismissed, and workers' objections were disposed of by confirming sufficient provisions in the award for their gratuity claims. The award was made the rule of the Court, and judgment was passed in terms of the award, with no order as to costs. Petitions were disposed of accordingly.