Arbitration application cannot be converted into a money suit by amendment or inherent powers under civil procedure.

A proceeding under Section 20 of the Arbitration Act, 1940 is not a plaint or suit; it is a pre-suit application limited to filing the arbitration agreement and reference to arbitration, or rejection. Order VI Rule 17 CPC cannot be used to convert such an application into a money suit because the amendment would introduce a wholly new cause of action, alter the character of the proceeding, and affect a limitation objection. Section 151 CPC also cannot override the statutory procedure under the Arbitration Act. The amendment was therefore impermissible, and the order allowing conversion was set aside.

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Issues: Whether an application filed under Section 20 of the Arbitration Act, 1940 for filing the arbitration agreement and appointment of an arbitrator could be amended into a plaint for recovery of money by invoking the Code of Civil Procedure and the court's inherent powers.

Analysis: An application under Section 20 is a proceeding taken before the institution of a suit with respect to the subject matter of the arbitration agreement. It is not a plaint and does not culminate in a decree; the only orders contemplated are filing of the agreement and reference to arbitration or rejection of the application. Order VI Rule 17 applies to suits and cannot be used to transform a statutory arbitration application into a money suit. The proposed amendment would introduce a wholly new cause of action, alter the nature and character of the proceeding, and prejudice the objection that the claim was barred by limitation. Section 151 of the Code of Civil Procedure cannot be used to bypass the procedure expressly provided by the Arbitration Act.

Conclusion: The amendment was impermissible and the High Court's order allowing it was unsustainable.

Final Conclusion: The order permitting conversion of the Section 20 proceeding into a suit was set aside and the trial court's refusal to amend was restored.

Ratio Decidendi: A proceeding under Section 20 of the Arbitration Act, 1940 is not a suit or plaint, and it cannot be converted into one by amendment under the Code of Civil Procedure or by resort to inherent powers where the amendment would change the very nature of the proceeding.

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