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Head Note

The Arbitration and Conciliation Act, 1996  - Section 34 (2) , The Code of Civil Procedure, 1908  - Order VIII Rule (9)

Interpretation of - Civil Procedure Code, 1908 - Order VIII Rule 9 - Application for additional pleadings - A Shareholders Agreement and a Joint Venture Agreement - Appellant alleged concealment and dereliction of duty as a joint venture partner - Disputes - Referred to arbitration - Arbitrator gave award - Appellant to transfer its entire shareholding in the second respondent to the first respondent - Appellant filed a suit seeking a declaration to set aside the award and also for a permanent injunction against the transfer of shares under the arbitral award - First respondent confessed that balance sheets had been fraudulently inflated - Appellant filed application for additional pleadings - Allowed by trial court - High Court held - Additional pleading not maintainable - Petition filed - Whether by allowing the amendment - Court will allow material facts to be brought on record in the pending - Setting aside proceeding - Court concluded - If concealed facts disclosed after passing of the award - Award may be set aside as affected or induced by fraud - Allowed to bring the materials on record by way of amendment - Impugned orders of the High Court set aside - Trial court restored - Appeal allowed - No costs.

Topic(s)-

Important Decision(s)- 

• Arbitration & Conciliation - O. 8 R. 9 of CPC - Application for additional pleadings by way of amendment - Ground - Fraudulently inflated - Allowed.
• Arbitrator gave award - Award may be set aside as affected or induced by fraud.