ARBITRATION ACT, 1940

Section-7

Once an arbitration proceeding commences, no Court shall have any jurisdiction to hear or proceed with any matter or suit not covered by the provisions of the Act.

Bangladesh Jute Mills Corporation Vs. Maico Jute and Bag Corp. & Ors. 10BL T (HCD)-223.

Section-8

Appointment of Arbitrators —power of the Court is discretionary—upon the application, it was duty of the Court to be satisfied that there arose really an arbitral dispute or difference in between the parties as to anything or matter under or out of the contract for reference to the arbitrators—in order to raise an arbitral dispute, there must some sort of formal demand to be made by one side and denied by other side either explicitly or by silence. Purpose is very clear. What can be resolved by negotiation that cannot be allowed to be taken to the Court for the interest of the work itself.

National Sports Council Vs. A. Latif Company. 9BLT (HCD)-269.

 Section-10

The Contract dated 29.09.1998 as entered into by the parties is not disputed. It is also not disputed that the contract contains an arbitration agreement. The suit was instituted for recovery of compensation for breach of the contract, and damages incidental to and arising out of non-payment of such compensation — the arbitration clause is very much in existence, a part from the rights and obligations of the parties under the contract — the arbitration clause 18 as quoted above, is very much alive, valid and effective. Moreover, before filing any written statement, the defendant made the application for stay. In the circumstances, the learned Subordinate Judge was obliged to take his hands off the proceedings and refer the matter to arbitration in accordance with the above arbitration clause.

Bangladesh Jute Mills Corporation Vs. Maico Jute and Bag Corp. & Ors. 10 BLT (HCD)-223

Section-14 & 17 read with Limitation Act, 1908 Article-158

Mandatory provisions-after award was given, that must be filed in Court under Section 14 and the court is obliged thereupon to serve notice upon the parties of the filing of the award. Then, under Section 17, if the court finds no reason to remit the award or any matter in difference back to the arbitrator for reconsideration or does not set aside the award, the court shall pronounce judgment but only after expiration of the time for making an application to set aside the award or refusing the application if any made. Article 158 of the Limitation Act has provided a period of 30 days from the service of notice of filing of the award for making an application to set aside an award. A decree thereupon shall follow such judgment. But no appeal shall lie against such decree except on the ground that the decree is in excess of or not exactly in accordance with the award.

Titas Gas Transmission & Distribution Co. Ltd. Vs. M/S Shams Company & Ors. 9BLT(HCD)-379.

Section-29

The jurisdiction or power of Arbitrator/Umpire, in the absence of any agreement, to grant future interest in the awarded amount till realization thereof is not within the power or jurisdiction of the Arbitrator/ Umpire but such power of granting interest on the awarded amount or part thereof till realization could be awarded as per provision of section 29 of the Arbitration Act which is within the jurisdiction of the Court or in other words, when the Award is brought to the Court then the Court in its discretion may or may not grant interest on the award amount or part thereof as decreed till realization.

Md. Asalat Zaman & Ors Vs. Govt. of Bangladesh  11 BLT(AD)-215.

Section-32

Whether the suit instituted in presence of the arbitration agreement is maintainable.

Held: We find no such provisions in the Act barring a suit on the ground of existence of an arbitration agreement.

BWDB Vs. Contractor, Manu Barrage 9BLT (HCD)-21.

Section-34 read with Code of Civil Procedure, 1908 Order-7 Rule-11

Whether a plaint can he rejected in presence of an arbitration clause and an arbitration award given by the arbitrators as per arbitration case.

If a person, who is a party to an arbitration agreement brings a suit ignoring that agreement, the defendants remedy, if he wants to rely on that agreement, is to proceed under Section-34 of the Arbitration Act and to seek for stay of the suit. If he does not avail that remedy, the court has jurisdiction to proceed with the suit and give its decision on merits. A party to. an Arbitration agreement is not precluded from instituting a Civil Suit either before or during reference.

Amunur Rahman Khan Vs. Trade Aris Insurance  9BLT (HCD)-206

Section-34

Even if there is any provision for arbitration in the contract/lease agreement, application for staying proceedings pending in the court is not maintainable, under section 34 of the Arbitration Act 1940, unless such application is filed in the court before taking any step in the case.

M.A. Gaffer Ltd. Vs. Eunjari Garments (Pvt.) Ltd. 8 BLT(HCD)-295.

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