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Chelikani Venkata Rao And Others v. C.V Rao And Others

Andhra Pradesh High Court
Jan 18, 1957
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Annotated Summary of the Judgment (SRINIVASACHARI, J.)

Factual and Procedural Background

This matter arises from family disputes following the death of Venkayya (No. 5) and his son Srinivasam (No. 14), ultimately affecting the estate of the late Srinivasam. The mother (Venkata Rajagopala Bhavayamma, No. 5-A) adopted Bhavanarayana Rao (No. 15) on 29-8-1948 after obtaining the consent of three of seven reversioners; four reversioners withheld consent. Disputes over the validity of the adoption and entitlement to the properties resulted in an agreement of reference to arbitration dated 7-6-1949, appointing two arbitrators (R. V. K. M. Surya Rao and I. V. Rama Rao). The arbitrators issued an award on 31-8-1949 (Ex. B-2), allotting approximately 40 acres and odd (purportedly representing one-third of the estate) to the seven reversioners (Gnatis) equally, and giving the rest to the adopted son and his mother.

One group (Venkatarao (No. 6), Buchi Venkata Rao (No. 9) and Vengala Rao (No. 12)) applied to have the award filed and a decree passed (suit O.S. No. 110 of 1949). The adoptive mother and adopted son (Bhavanarayana Rao (No. 15) and Venkata Rajagopala Bhavayamma (No. 5-A)) filed I.A. No. 1777 of 1949 under Section 33 of the Arbitration Act seeking to set aside the award. The Subordinate Judge, Kakinada set aside the award, finding misconduct and excess of jurisdiction among other grounds. The present judgment concerns appeals against that order; the appellate court examined the scope of the reference, validity of adoption and procedural allegations, and whether the award could be set aside or remitted for further inquiry.

Legal Issues Presented

  1. Whether the arbitrators exceeded the scope of their authority by deciding matters relating to the properties of the late Srinivasam (i.e., whether the dispute as to property was within the terms of the reference).
  2. Whether the arbitrators erred in law or committed misconduct in holding the adoption valid despite alleged lack of requisite consent from the Sapindas (Gnatis).
  3. Whether there was consensus ad idem between the arbitrators in awarding property to the Gnatis (i.e., unanimity of the arbitrators' decision).
  4. Whether procedural irregularities occurred before the arbitrators—specifically non-supply of copies of statements or reliance on documents of which one party had no notice—amounting to legal misconduct under Section 30 (and related provisions) sufficient to set aside the award.
  5. Whether, given that one arbitrator died after the award, the court could or should remit the matter for further enquiry or appoint a new arbitrator to effect corrections (i.e., the availability of remittal post-award and the court's power to appoint a replacement arbitrator).

Arguments of the Parties

Applicants seeking decree (applicants in O.S. No. 110 of 1949)

  • Sought an order calling upon the arbitrators to file their award and for a decree to be passed in terms of the award.
  • Asserted that the arbitrators had jurisdiction to decide disputes about adoption and properties under the agreement of reference.
  • Contended that the arbitrators' factual findings and allocations, though possibly imprecise in valuation, did not amount to misconduct or an error of law apparent on the face of the award.

Opposing party (who filed I.A. No. 1777 of 1949 under Section 33)

  • Contended that the award should be set aside on multiple grounds: (a) the arbitrators exceeded their jurisdiction by deciding property questions not within the scope of reference; (b) the arbitrators wrongly held that the adoption was valid despite lack of consent of a major portion of the Gnatis; (c) there was no consensus ad idem between the arbitrators regarding the allotment to the Gnatis; and (d) procedural irregularity in that copies of statements filed before the arbitrators were not supplied to the respondents.
  • Also argued that the arbitrators relied upon documents or materials not properly the basis of the award (drawing support from the Supreme Court decision in Vengamma v. Kesanna).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gopalam v. Suryanarayana, AIR 1926 Mad 752 Interpretation of terms of reference where there was an omission to refer particular claims. The Court distinguished the present facts from Gopalam: unlike that case, there was no omission here — the clause referring disputes "in respect of all the properties of late Srinivasam" indicated that property disputes were within the reference.
Champsey Bhara & Co. v. Jivraj Balloo Spinning & Weaving Co. Ltd., ILR 47 Bom 578 : (AIR 1923 PC 66) Error of law by arbitrator must be apparent on the face of the award to justify court interference. The Court applied this principle to hold that an alleged error in law in upholding the adoption did not amount to grounds for interference unless the error was apparent on the face of the award.
Vellanki Venkata Krishna Rao v. Venkatarama Lakshmi, 4 Ind App 1 (PC) Where a family council on fair consideration substitutes an heir, that may be sufficient for validity of a widow's adoption. Used to support the proposition that sufficiency of Sapinda consent is a factual inquiry and that assent by a considered family council can validate an adoption.
Veerabasava Raju v. Balasurya Prasada Rao, 45 Ind App 265 : (AIR 1918 PC 97) Majority assent of divided brothers may suffice; single refusal can be discounted if a majority assent. The Court relied on this passage to show that the quantitative test for Sapinda consent is not rigid and that majority assent can validate an adoption.
Rama Subbayya v. Chenchuramayya, 74 Ind App 162 : AIR 1947 PC 124 Evidence of consent sufficient to show the widow did not act improperly or capriciously; qualitative rather than purely quantitative test. The Court cited this authority to reinforce that validity of adoption depends on facts showing bona fides, not simply counting numbers.
Subba Rao v. Venkata Satyanarayana : (AIR 1953 Mad 755) Whether Sapinda consent is sufficient is a question of fact in each case; focus on bona fides and religious duty. The Court relied on this Madras High Court decision (a Bench decision including one of the present judges) to treat Sapinda consent as a factual issue for the arbitrators' findings.
Ratha Krishna Murthy v. Balasubramania & Co., 1948-2 Mad LJ 601 : AIR 1949 Mad 559 On what constitutes misconduct under S. 30(c) of the Arbitration Act. The Court cited this Madras High Court decision to support that mere incorrectness in law or non-strict application of law does not necessarily amount to judicial misconduct warranting setting aside under S. 30(c).
Vengamma v. Kesanna, AIR 1953 SC 21 Arbitrator basing award on documents not in plaint/written statement and without giving a party opportunity to be heard may amount to legal misconduct invalidating an award. The Court considered and distinguished this Supreme Court precedent: unlike Vengamma, no document was relied upon by the arbitrators of which the opposing party had no notice; therefore the circumstances that vitiated the award in Vengamma did not exist here.
Lord v. Howkins, (1857) 157 ER 23 Where the agreement of reference provides for appointment of new arbitrators, the court may appoint replacements and remit a matter even if an arbitrator dies after making an award. The Court relied on this English authority to explain that remittal after an award is only practicable where the agreement or reference empowers appointment of a replacement; no such provision existed in the present agreement.

Court's Reasoning and Analysis

The court proceeded through the challenges in sequence, applying textual construction of the agreement of reference, standards for judicial review of arbitral awards, and factual findings drawn from the record:

  1. Scope of reference: The court examined Clause 7 of the agreement of reference (quoted in the opinion) and concluded that the words "in respect of all the properties of late Srinivasam" reasonably indicate disputes about property were within the scope of reference. The Subordinate Judge's narrower reading that the reference was limited to adoption alone was rejected as inconsistent with the clause's language and purpose (to avoid court litigation and related expense).
  2. Standard for interference on error of law: Relying on precedent, the court reiterated that an arbitrator is the final judge of law and fact for the purposes of an award; an error of law must be apparent on the face of the award to justify interference. Applying Champsey Bhara and related authorities, the court found no error of law apparent on the record in the arbitrators' conclusion upholding the adoption.
  3. Validity of adoption and Sapinda consent: The court reviewed the evidence showing that three of seven Sapindas gave consent. Citing Privy Council and High Court authorities (Vellanki, Veerabasava, Rama Subbayya, Subba Rao), the court treated sufficiency of Sapinda consent as essentially a question of fact and of bona fides. The trend of authorities shows no rigid quantitative test; majority assent upon fair family consideration may validate an adoption. On the record, the court did not find an apparent error of law or misconduct in the arbitrators' factual finding that the adoption was valid.
  4. Consensus ad idem: The court analyzed the arbitrators' depositions (C.W.1 and C.W.2) and concluded there was agreement that some portion should go to the Gnatis; the existence of consensus between the arbitrators was established by their testimony (particularly I. V. Rama Rao's evidence).
  5. Procedural irregularities (non-supply of copies): The court found that statements had been filed by both parties before the arbitrators and that either party could have obtained copies; there was no evidence that one side was deprived of opportunity to be heard or supplied with necessary materials. Hence no irregularity amounting to misconduct was made out.
  6. Reliance on extraneous documents: The court considered the Supreme Court decision in Vengamma v. Kesanna (where reliance on a settlement deed and will not in the plaint/written statement led to vitiation). It distinguished that case on the facts — no document of which a party had no notice was shown to have been relied upon here — and rejected this ground for setting aside the award.
  7. Quantification and remittal issue: The arbitrators agreed on a one-third share for the Gnatis but did not ascertain the exact value of the lands representing that share; they allotted "40 acres and odd" believing it to represent one-third. A valuator later admitted a mistake, but the arbitrators did not change the award. Normally this might justify further inquiry or remittal. However, after the award one of the arbitrators died. The court noted that Section 8 of the Arbitration Act allows appointment of a replacement where proceedings are pending, but the Act does not provide for appointing a replacement after an award has been made and the arbitrators have become functus officio. Lord v. Howkins shows remittal is possible only where the agreement itself provides a mechanism for appointing a replacement. Because the agreement of reference here contained no such provision, and the Act did not empower the court to appoint a post-award arbitrator in this situation, the court found itself unable to remit for recalculation or further inquiry.
  8. Conclusion of analysis: None of the respondent's grounds established judicial misconduct or other statutory bases (under Section 30/33) sufficient to set aside the award. Because remittal was not practicable owing to the death of an arbitrator and absence of authority to appoint a post-award replacement, the court upheld the award and set aside the Subordinate Judge's order.

Holding and Implications

Final Holding: The appellate court allowed the appeals, set aside the judgment of the Subordinate Judge that had set aside the award, and passed a decree in terms of the arbitrators' award. In the circumstances the court made no order as to costs.

Implications and direct consequences:

  • The arbitral award (Ex. B-2) stands as valid and binding; a decree is to be entered in terms of that award.
  • The Subordinate Judge's decision to set aside the award is reversed.
  • No remittal or further inquiry into valuation was ordered because one arbitrator died after the award and neither the Act nor the agreement permitted appointment of a post-award replacement arbitrator; therefore the court declined to remit the matter.
  • The court found no basis to treat the arbitrators' legal conclusions or alleged errors as misconduct under the Arbitration Act sections invoked; the decision emphasizes the narrow scope for judicial interference where errors are not apparent on the face of an award and where factual determinations (such as sufficiency of Sapinda consent) are involved.
  • The opinion does not purport to establish a novel legal principle; it applies established standards on (a) construction of reference clauses, (b) reviewability of arbitral awards, (c) factual nature of Sapinda consent, and (d) limits on remittal post-award when an arbitrator has died.

Order accordingly.

Show all summary ...

Judgement

SRINIVASACHARI, J. : -

We have before us a Civil Miscellaneous Appeal and a regular appeal filed against the order of the Subordinate Judge, Kakinada, setting aside an award, and superseding the reference to arbitration.

2. The following genealogical table would indicate the relationship of the parties :

3. By an agreement of refernce the following persons, VenkatarajaGopala Bhavamayya Garu (No. 5-A)in the table and Bhavanarayana Rao Garu (No. 15) on the one hand and C.V Rao Garu (No. 11),Sitaramaswamy (No. 13), Vnkata Rao Garu(No. 6) Venkayya (No. 5), Buchi Venkata Rao(No. 9), and Venkata Ramana Rao Garu (No. 10) on the other, referred the matters in dispute and more particularly described in the agreement of reference to two persons viz.; the Zamindar of Gollaprolu and I. V. Rama Rao Bhadur.

The arbitrators gave an award on 31-8-1949 being Ex. B-2. An application was filed by Venkatarao "(No. 6), Buchivenkat Rao (No. 9) and Ven-gala Rao (No. 12) to call upon the arbitrators to file the award with a prayer that a decree be passed in terms of the award. This application was registered as a suit being O. S. No. 110 of 1949. The award was filed and after notice was issued to the other parties Bhavanarayana Rao (No. 15) and Venkata Rajagopala Bhavayamma Garu (No. 5-A) filed an application under Section 33 of the Arbitration Act, to set aside the award.

This application was numbered as I. A. No. 1777 of 1949. The Subordinate Judge after trial set aside the award holding that there was misconduct of the arbitrators. In the result he allowed I. A. No. 1777 of 1949 and dismissed the Suit No. 110 of 1949. Hence the above appeals.

4. Venkayya (No. 5) in the pedigree died in 1943 leaving him surviving Srinivasam (No. 14). This Srinivasam died in 1947 unmarried. Therefore, the prooerties devolved upon his mother (No. 5-A). This lady, in order to perpetuate the lineage and for her husbands spiritual benefit, desired to adopt Bhavanarayana Rao (No. 15). She applied to the reversioners who were 7 in number, for giving their consent to the proposed adoption.

Of these, three gave their assent while the other four declined to give their assent. Venkata Rajagopala Bhavayamma adopted Bhavanarayana Rao on 29-8-1948. Disputes therefore arose, about the adoption, the reversioners questioning the adoption. Finally to avoid the contingency of protracted litigation the parties referred the matters ir dispute to two persons who were well conversant with the affairs of the family viz. (1) Shri R. V. K. M. Surya Rao and (2) Shri I. V. Rama Rao.

This agreement of reference to arbitration was made on 7-6-1949, being Ex. B-1. The arbitrators after enquiry gave their award on 31-8-1949 being Ex. B-2 by which they allotted certain landed properties mentioned in the award to the extent of 40 acres 32 cents to the seven reversioners with equal and absolute rights. All the rest of the properties both moveable and immoveable of the late Srinivasam were given to the adopted son and his mother.

5. As has been stated above one party sought for a decree in the terms of the award while the other party sought to get the award set aside.

6. The Subordinate Judge has set aside the award on the ground that there was no dispute with regard to the properties of the late Srinivasam, obviously as the Sapindas had then no immediate right to Srinivasams properties and this matter was never referred to the arbitrators and that, therefore, they had no jurisdiction to award a portion of the properties to the Gnatis, as that was beyond the scope of the reference.

The Judge also held that the award was vitiated by reason of the fact that they held the adoption to be valid while holding that there was not the requisite consent of the Gnatis. A further ground on which the award was set aside by the Subordinate Judge was that there was not Consensus Ad Idem in the matter of the allotment of the properties to the Gnatis. Yet another plea which was raised to invalidate the award and which was accepted by the Subordinate Judge was that there was no proper enquiry that copies of the statements filed by one party were not given to the other side.

7. As regards the first ground of attack viz.; that the arbitrators exceeded the scope of their authority we are not in agreement with the Subordinate Judge that the terms of reference to arbitration limited the decision with regard to adoption alone. The relevant portion of Clause 7 of the agreement of reference Ex-B-1 reads as under :

"You personally know about our family affairs from the beginning. All of us having equal respect towards you. If the abovementioned disputes are aggravated and if proceedings are taken in Courts both parties would incur enormous expenditure, and undergo difficulties and incur loss. With this view we agree that you should decide the disputes that arose in respect of the alleged adoption of the 2nd individual by 1st individual and in respect of all the properties of late Srinivasam alias Bhavana Rao."
The above clause would clearly indicate that there were disputes with regard to the adoption of Bhavana Rao and also with regard to his properties, and both matters were referred to aribitration to save the parties from becoming subject matters of suit, and the consequential entailing of enormous expenditure and unnecessary loss, which they would sulfer by going to court.

A fair reading of this Clause makes the point clear that the arbitrators were invested with the authority not only to decide about the adoption that had taken place but also settle once and for all the disputes that had sprung up, as regards the properties of Srinivasam. The learned Subordinate Judge has merely relied upon the fact that the matter of the dispute relating to the properties, had not been stated in express terms in the agreement of the reference.

No doubt the fact that there was a dispute between the parties had not been stated in so many words but the words that occur in the relevant clause are and in respect of all the properties of late Srinivasam, have to be given some meaning. Reliance was sought to be placed on the judgment of the Madras High Court in Gopalam v. Suryanarayana AIR 1926 Mad 752 (A). The learned Judges on the facts and the terms of reference in that case came to a definite conclusion that the claim of the plaintiffs to a share in the family property had been omitted.

In the case before us there is no omission at all. The fact of the matter of the dispute relating to the properties of Srinivasam as having been also referred to the arbitrators has not been stated in so many words but nevertheless indicated. The particular words referred to by us above signify that the parties agreed that the disputes in respect of the properties of the late Srinivasam should be gone into by the arbitrators.

The Gnatis were intending to go to Court to contest the adoption and the adopted son becoming entitled to the properties and both parties were anxious that they should be saved the enormous expenditure that they would incur and the loss they would suffer by going to Court, and therefore requested the arbitrators to settle the matters out of Court by giving an award.

The agreement of reference should be construed as an agreement by the parties giving power to the arbitrators to decide the dispute between them about the matter of adoption and about the properties of Srinivasam as appeared to the arbitrators to be just and equitable. And this power under reference in our opinion was wide enough to make a provision for the Gnatis by the setting apart of certain properties for them for the whole estate.

8. The next formidable objection raised for holding the award to be invalid is that they were wrong in holding the adoption to be valid in the face of the conclusion that consent had not been given by a major portion of the group of reversioners and it was contended that this was a wrong and erroneous decision of law. The mere fact that the arbitrators had erred in law can be no ground for interference.

An arbitrator is regarded as the sole and final judge on all matters whether of fact or of law and it may be taken to be settled law that the error of law, if any, should be apparent on the face of the award to justify any interference by the Court. We may refer to the case of Champsey Bhara and Co. v. Jivraj Balloo Spinning and Weaving Co. Ltd. ILR 47 Bom 578 : (AIR 1923 PC 66) (B). The question is, is there an error of law apparent on the face of the record.

The question of law for consideration was whether the consent of a few among others of the Gnatis was enough to validate an adoption. The evidence would show that three out of the seven sapindas had given their consent. The proof of assent as has been held in decided cases is necessary in order to determine whether the adoption was made by the widow with any capricious or corrupt motive with a view to defeat the interests of this or that Sapinda.

The leading case on this point is the case of Vellanki Venkata Krishna Rao v. Venkatarama Lakshmi 4 Ind App 1 (PC) (C) where their Lordships of the Privy Council emphasised the fact that where upon a fair consideration by a family council of the reversioners the substituting of an heir was decided upon, that would be enough tor the validity of an adoption by the widow. The matter was further elucidated in the case of Veerabasava Raju v. Balasurya Prasada Rao 45 Ind App 265 : (AIR 1918 PC 97) (D) wherein while discussing about the assent of the Sapindas then : Lordships observed :

"In the absence then of the father the assent of the divided brothers is equally requisite for the validity of the widows adoption. If a majority assent and one refuses his objection may be discounted."
Again the same principle was reiterated in the case of Rama Subbayya v. Chenchuramayya, 74 Ind App 162 : ( AIR 1947 PC 124) (E) viz.; that it is enough if there is evidence of consent as would show that the widow in making the adoption was not acting improperly or capriciously. Finally it is not a quantitative test that has to be applied in judging whether there was the requisite consent of the Sapindas.

As was held by a Bench decision of the Madras High Court of which one of us was a party, it would be a question of fact in each case as to whether the consent of the Sapindas was sufficient to validate the adoption, the only legal test being whether there is evidence of the act having been done bona fide in the performance of a religious duty. Vide : Subba Rao v. Venkata Satyanarayana : (AIR 1953 Mad 755) (F).

9. Therefore on a construction of the award we do not think that the conclusion of the arbitrators that the adoption could be held to be valid could be regarded as an error apparent on the face of the record, especially where the trend of decisions, as has been shown above, has been that it would have to be decided as a fact in each case whether the adoption was with any capricious motive. Further, not deciding in strict accordance with law could not be regarded as amounting to misconduct, to justify interference under S. 30(c) of the Arbitration Act. We may refer to the judgment of the Madras High Court in Ratha Krishna Murthy v. Balasubramania and Co., 1948-2 Mad LJ 601 : (AIR 1949 Mad 559) (G).

10. The next ground of attack is that there was no consensus ad idem in the matter relating to the awarding of some properties to the Gnatis. In this regard reliance is placed on the depositions of C.Ws. 1 and 2, and it is urged that although C. W. 1 says that both himself and C.W. 2 were agreed that the Makhta or 1/3 should be given to Gnatis, C.W. 2 says that all that is false.

An analysis of the statements of these two arbitrators would show that they were agreed and had decided that a portion of the properties should go to the Gnatis and it is abundantly clear that the arbitrators were agreed that the Gnatis should be awarded some property. I. V. Rama Raos evidence is clear on this point. It could not be said, therefore, that in the decision that they arrived at there was no consensus of opinion.

11. It was also contended that the respondents were not given copies of the statements filed by the appellants before the arbitrators. There could be no question of the copy of a statement filed by one party being given to the other side. The statements of the arbitrators would show that statements were filed by both the parties before them and it was open to either of them to obtain copies of the documents. There has been no irregularity.

It was urged that the arbitrators were influenced by other documents filed by the other side in basing their award and as such it was liable to be set aside. Support was drawn for this argument from a judgment of the Supreme Court in Vengamma v. Kesanna, AIR 1953 SC 21 (H). In that case although the arbitrator was to give his award on the plaint and the written statement filed before him still, he relied upon a settlement deed and a will, and awarded certain lands after perusing these documents.

Under those circumstances, their Lordships of the Supreme Court declared that, that amounted to legal misconduct which vitiated the award. It was also found that one party had no opportunity to have her say with regard to the settlement deed. No such thing has happened in this case. No document was placed before the arbitrators by one party of which the other side had no notice this argument, therefore, fails. We are of the opinion that the grounds urged by the respondents are not sufficient to set aside the award under S. 30 of the Arbitration Act.

12. It would be clear from the evidence of C.W. 1 one of the arbitrators that the two arbitrators were in agreement that a third of the total properties forming part of the estate should be given to the Gnatis. In this regard there was unanimity. In implementing the decision that they had come to, they allotted 40 acres and odd to the Gnatis being under the belief that that represented 1/3 of the total extent of the estate.

The evidence of C.W. 1 would show that he was assured that the 40 acres and odd would represent 1/3 share and that C.W. 2 the other arbitrator assured him that even if there was any error it could be corrected later. Neither of the arbitrators knew about the value of the lands proposed to be given to the Gnatis. After the award was concluded they approached one Matepalli Sat-yam to value the lands. On a rough and ready basis Satyam apportioned 40 acres and odd as representing 1/3 of the total extent.

Subsequently Satyam came and represented that, he had committed a mistake in the values. But tile arbitrators did not choose to make any alteration in the award with regard to the extent of the property awarded to the Gnatis. It would therefore appear that while the arbitrators agreed that 1/3 of the total property should be given to Gnatis, they did not actually find out what 1/3 of the estate would come to, and allot the property of that value.

In awarding 40 acres the arbitrators were under the impression that it represented 1/3 of the estate without satisfying themselves that the value of the lands so allotted amounted to 1/3 of the value of the total estate. There is no satisfactory evidence on record of the value of the portion awarded to the Gnatis. This was a matter which required further enquiry and we might have remitted the case again for this purpose but we were informed that one of the arbitrators had since died.

This supervening circumstance has now changed the aspect of the whole case. There is provision in the Arbitration Act, for the appointment of a new arbitrator to supply the vacancy caused by the death of one of the arbitrators. This is provided for by S. 8 of the Act. Section 8 envisages cases where the proceedings are pending before the arbitrators and any of the arbitrators dies or becomes incapable of acting. In the case before us the award has been given and after the award one of the arbitrators died.

There is no provision as such in the Act for the naming of another arbitrator after the award had been given, and the arbitrators had become functus officio. Under the English Law, where there is power to appoint an arbitrator in place of one who dies and the arbitrator dies after making his award, the award may be remitted to a new arbitrator appointed by the Court in accordance with the provisions in the agreement to refer.

This means that where there is a provision in the agreement of reference to arbitration for the appointment of an arbitrator in place of one who has died, the Court has the power to appoint a new arbitrator even after the making of the award. In the case before us, in the agreement of reference to arbitration, there does not appear to be any provision to that effect. Under these circumstances where the Act also does not empower the Court to appoint a fresh arbitrator in place of the one who has ceased to exist, it would be difficult to appoint one in place of the deceased arbitrator and remit the case to him.

In Lord v. Howkins, (1857) 157 ER 23 (I) an action was referred to the arbitration of 12 persons and it was further provided that in the event of any of the arbitrators declining to act or dying before the award was made, the parties might, or if they could not agree, one of the Barons of the Court might appoint fresh arbitrators. One of the arbitrators died after the award was made. On a motion to set aside the award which was admitted to be bad, it was held that the Court had power to remit any matter to the surviving 11 and a fresh arbitrator was appointed in pursuance of the provisions in the agreement of reference to arbitration.

In the case, because there was a provision for appointing a new one, it was held that if there was any defect in the award it could be sent back to the surviving arbitrators and a new arbitrator also could be appointed. Inasmuch as there is no specific provision in the agreement of reference in the case before us for nominating another arbitrator in place of one who died, we are helpless. Where the arbitrators through an error of judgment allotted a large portion to the Gnatis without knowing the value of the land it cannot be a ground for setting aside an award under S. 30 of the Arbitration Act.

13. We have pointed out that none of the matters pointed out by the learned Counsel for the respondent have been established and therefore there has been no judicial misconduct to justify our setting aside the award. As the case cannot be remitted, the award will stand. The judgment of the lower Court is set aside and a decree in terms of the award is passed, but in the circumstances of the case there will be no order as to costs.

Order accordingly.