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PREMIER INSURANCE CO. (PAKISTAN) LTD., KARACHI versus EJAZ AHMAD KHAWAJA


Section 19 (2) Partnership Partnership is the authority of the partner to refer arbitration on behalf of another partner; it is not required to be in writing or express terms. Such authority means And its behavior can be inferred. Before and after the other partners make such a reference

1981 C L C 311

[Karachi]

Before Zaffar Hussain Mirza and Saeeduzzaman Siddiqui, JJ

THE PREMIER INSURANCE Co. (PAKISTAN)

LTD., KARACHI‑Appellant

versus

EJAZ AHMED KHAWAJA AND 3 OTHERS‑Respondents

High Court Appeal No. 3 of 1973, heard on 28th May, 1980.

(a) Arbitration Act (X of 1940)‑

‑ S. 33‑Award‑Appreciation of evidence‑Court while examining legality of award, held, cannot substitute its own finding on apprecia tion of evidence in place of one given by Arbitrators or Umpire even if Court reaches to a different conclusion on evidence.‑[Evi dence‑Award].

(b) Arbitration Act (X of 1940)‑

‑‑ S. 33 and Evidence Act (I of 1872)‑Arbitration proceedings Procedural law‑Proceedings before Arbitrators or Umpire‑In nature of proceedings before a domestic tribunal ‑ Strict compliance of procedural law or law of evidence, held, cannot be insisted upon in such proceedings.

(c) Arbitration Act (X of 1940)‑

S. 15‑Award‑Error apparent on face of award, held, must be discoverable by reading award itself and not by reference to other materials namely record and proceedings before Arbitrators or umpire.‑[Award].

Muhammad Sadiq Muhammad Afzal v. Ministry of Industries, Department of Supply and Development, Government of Pakistan P L D 1966 Kar. 412; Sadlq‑Muhammad Afzal v. Ministry of ludustries P L D 1962 Kar. 113; Pakistan through Secretary, Ministry of Industries v. Messrs Asians Associated Agencies Limited P L D 1974 Kar. 155; Chamosey Ehara Company v. The Jivraj Balloo Spinning & Weaving Company Limited A I R 1923 P C 66 and A. Z. Company v. S. Mould Bakhsh Muhammad Bashir P L D 1965 S C 505 ref.

(d) Partnership Act (IX of 1932)‑

‑‑‑ S. 19(2)‑Partnership‑Implied authority of partner‑Authority of one of partners to make a reference to arbitration on behalf of other partners, held, need not be in writing or in express terms‑Such authority may be implied and can be inferred by conduct of other partners before and after making such reference.

(e) Partnership Act (IX of 1932)‑

‑ S. 19(2)‑Authority of partner to make reference to arbitration can be challenged only by other partners and not by strangers.

Muhammad Azam Muhammad Fazil & Co. v. N. A. Industries, Karachi P L D 1977 Kar. 21; President, Union of India v. Kalinga Construction Co. Ltd. A I R 1971 S C 1646 and Sideman Haji Muhammad & Co, v. State Bank of Pakistan P L D 1960 Kar. 78 ref.

Mansoorul Arfin for Appellant.

Naraindas C. Motiani for Respondents.

Dates of hearing: 27th and 28th May, 1980.

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