Report No. 76

11.31. First Schedule paragrap.- Recommendation.-

Paragraph 7 provides that the award shall be final and binding on the parties and persons claiming under them respectively. In one special situation, the paragraph requires to be qualified, namely, where either the arbitration agreement, or the bye-laws of any association which are expressly on impliedly adopted by the arbitration agreement,1 provide for an appeal from an arbitrator to a higher arbitrator. In such cases, the intention of the parties is that it is the award made by the appellate authority (as contemplated by the agreement or the bye-laws) whose award is to become the final award. It has specifically been held2 that a provision for appeal in any bye-law is not ultra vires the provision of the First Schedule, paragraph 7.

1.Heeralal & Co. v. Joakim & Co., AIR 1927 Cal 647 (649, 651).

2. M.A. & Sons v. Madras Oil & Seeds Exchange Ltd., AIR 1965 Mad 392 (394), paras. 8 to 11.