J. Kodanda Rami Reddy Vs. State of A.P. & others
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Head Note
Indian Arbitration Act, 1940 - Section 8 (2)
Appointment of Arbitrator by Court - Appointment made by Court after an arbitration agreement - Award by arbitrator not a nullity - Appointment not challenged and allowed to attain finality - Order of appointment challenged after the award was made and award made rule of Court - After adjudication that there was an arbitration agreement - Award by arbitrator not a nullity though it may be erroneous - Rule of finality would come into play in regard to the order under Section 8(2) of the Act appointing the Arbitrator.
The Code of Civil Procedure, 1908 - Section 2 (2)
Jurisdiction of Court to pass a decree - A decree will be a nullity only if it is passed by a Court usurping a jurisdiction it did not have - But a mere wrong exercise of jurisdiction or an erroneous decision by a Court having jurisdiction, will not result in a nullity - An order by a competent Court, even if erroneous, is binding, unless it is challenged and set aside by a higher forum - Be that as it may.
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