Report No. 76

8.44. Section .- difficulty caused by the words "whole of the subject-matter" and "all parties".-

In order that section 35 may apply, three conditions are required to be fulfilled, namely:-

(i) Notice must be given of the institution of the proceedings to the arbitrators or umpire.

(ii) The legal proceedings must be upon the whole of the subject-matter of the reference.

(iii) The proceedings must be between all the parties to the reference. Some difficulty has been pointed out1 as likely to be caused by the section. We may, however, state that no reported decision has come to our notice adverting to any difficulty in the actual operation of the section. In our opinion, the section incorporates a wholesome principle, and needs no modification.

1. Sircar Law of Arbitration in British India, (1942), p. 332.