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Arbitration Project - 20240504073853

The case involves two contracts for cotton sales between two companies that went to arbitration. The respondents appealed the arbitration award. The High Court found an error in law but the final court judgment restored the original ruling, finding no legal error on the face of the award.

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30 views2 pages

Arbitration Project - 20240504073853

The case involves two contracts for cotton sales between two companies that went to arbitration. The respondents appealed the arbitration award. The High Court found an error in law but the final court judgment restored the original ruling, finding no legal error on the face of the award.

Uploaded by

patrasuraj620
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Indian Appeals: Champsey Bhara

and Company vs Jivraj Balloo


Spinning and Weaving Company
Case Background
The case involves two contracts between Champsey Bhara & Co. (appellants) and Jivraj
Balloo Spinning and Weaving Co. (respondents) for the sale of cotton. The contracts were
subject to the rules and regulations of the Bombay Cotton Trade Association. Disputes
arose regarding the quality of the delivered cotton, leading to arbitration under the
Association's rules. The respondents rejected the cotton following the arbitration, leading
to the appellants claiming damages.

• Parties Involved: The appellants are Champsey Bhara & Co., and the respondents
are Jivraj Balloo Spinning and Weaving Co.
• Contracts: Two contracts were made for the sale of cotton, subject to the rules and
regulations of the Bombay Cotton Trade Association.
• Dispute: Disputes arose regarding the quality of the delivered cotton, leading to
arbitration and subsequent rejection of the cotton by the respondents.

Court Proceedings and Decision


The respondents petitioned the court to set aside the arbitration award. The trial judge,
Pratt J., dismissed the petition. However, the Appellate Division of the High Court
reversed the judgment, finding an error in law on the face of the award. The appellants
appealed this decision.

• Petition to Set Aside Award: The respondents petitioned the court to set aside the
arbitration award, alleging that there was no question referable to the arbitrators
under rule 13 and that there was an error of law on the face of the award.
• High Court Decision: The Appellate Division of the High Court reversed the trial
judge's decision, finding an error in law on the face of the award.
• Appeal: The appellants appealed the decision of the Appellate Division of the High
Court.

Page 1 of 2
Final Judgment
The final judgment held that the error in law does not appear on the face of the award.
The court stated that an error in law on the face of the award means that some legal
proposition which is the basis of the award is erroneous. The court found that the
arbitrators were entitled to give their own interpretation to rule 52 or any other article,
and the award will stand unless they have tied themselves down to some special legal
proposition which then appears to be unsound. The judgment of the trial judge was
restored and the appellants were awarded their costs.

• Interpretation of Error in Law: The court held that an error in law on the face of
the award means that some legal proposition which is the basis of the award is
erroneous.
• Arbitrators' Interpretation: The court found that the arbitrators were entitled to
give their own interpretation to rule 52 or any other article.
• Final Decision: The judgment of the trial judge was restored and the appellants
were awarded their costs.

Page 2 of 2

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