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ADAMJEE INSURANCE COMPANY LTD. versus R. B. INDUSTRIES


Section 11 Fundamentals of Removal of Arbitrator During Arbitration Procedure: Whether to complain against the nature of its action / error, resulting in a misunderstanding of justice.

1981 C L C 923

[Karachi]

Before Ajmal Mian, J

ADAMJEE INSURANCE COMPANY LTD.‑-----Petitioner

versus

R. B. INDUSTRIES LTD. AND ANOTHER‑Respondents

Judicial Miscellaneous No. 27 of 1979, decided on 23rd April, 1980.

Arbitration Act (X of 1940)‑-----

‑‑‑ S. 11‑Removal of arbitrator during pendency of arbitration proceedings‑Underlying principle : Whether his acts/omissions complained against of nature resulting in miscarriage of justice.

Question as to whether a petitioner has made out a case under section 11 of the Arbitration Act, 1940 for removal of an arbitrator during the pendency of an arbitration proceeding will have to be determined on the basis of the facts of each case. The underlying principle is that if the Court comes to the conclusion that the acts omissions complained of are of the nature which resulted into miscarriage of justice, it will constitute misconduct on the part of the arbitrator or misconducting of the proceedings rendering him liable to be removed. However, passing of an adverse order to a party; if within the jurisdiction of the arbitrator, will neither constitute misconduct on his part nor misconducting of the proceedings nor any bias can be inferred from such an order. It may be pertinent to observe that a Court or a tribunal is competent to regulate and to control proceedings before it in accordance with law which will naturally involve the determination of the question as to whether inspection of a particular document or its production be permitted.

Muhammad Moin Khan v. Chief Settlement Commissioner etc. P L D 1961 S C 436 ; Haji Anwar and another v. Haji Jamil Ahmed and 2 others 1971 S C M R 806 ; Mst. Barhi Bai v. Ghulam Abbas P L D 197 Kar. 278 ; Bishandas v. Gurbakhsh and another A I R 1934 Lah. 63 ; Surat Cotton Spinning & Weaving Mills Ltd. v. Secretary of State A I R 1937 P C 152 ; Muhammad Ismail Choudhry v. Abdul Khaleque Sowdagar P L D 1960 S C 301 ; Syed Ikhlaque Hussain v. Pakistan P L D 1969 S C 201 ; Muhammad Nwaz v. Ghulam Kadir and 3 others P L D 1973 S C 327 ; Brooke Bond (Pak.) Ltd. v. Conciliator appointed by the Government of Sind and 6 others P L D 1977 S C 237 ; Khwaja Ghulam Rasool Lone v. Azad Jammu & Kashmir Government P L D 1971 Azad J & K 127 ; Aboobakar Latif v. Reception Committee of the 48th Indian National Congress and another A I R 1937 Bom. 410 ; Khawaja Sayiad Badruddin Hassan v. Mst. Amir Begum and others 13 1 C 520 ; Safia Bai and another v. Karachi Co‑operative Housing Societies Union Ltd. P L D 1967 Kar. 598 and Messrs Kashim Haji Ahmed v. Trading Corporation of Pakistan P L D 1977 Kar. 480 ref.

Z. U. Ahmed Imtiaz Lari for Petitioners.

Akhtar Mahmood Khan for Respondents.

Dates of hearing :14th, 15th and 16th April, 1980.

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