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Report No. 76

8.30. Recommendation as to section 32.-

After giving the matter our careful consideration, we recommend that section 32 should be re-numbered as sub-section (1) thereof, and, after sub-section (1) as so re-numbered, the following sub-sections should be inserted:

(To be added in section 32)1

"(2) An award shall not be pleaded in defence to any suit, on the ground that the award has determined any matter in issue in the suit: but nothing in this sub-section shall-

(a) affect any decree passed under section 17, or

(b) prejudice any right of a person to apply for a stay of the suit on the ground that there has been made an award which determines the matter in issue and that he proposes to obtain a judgment under section 17 in terms of the award.

"(3) Nothing in sub-section (2) shall preclude any person from pleading any award in defence-

(a) where the award has been accepted by the parties, so as to constitute an agreement, or

(b) where the award has been acted upon, so as to constitute, estoppel."

1. Para. 8.26 to 8.28, supra.

Arbitration Act, 1940 Back

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