' MUHAMMAD ALAM, J.---This is civil first appeal against the judgment/decree dated 10-11-2011, passed by the learned Senior Civil Judge Skardu, whereby, the learned trial Court has rejected the objections of the appellant/defendants that they filed against the award dated 07-06-2011.
Learned trial Court made rule of the court, the award dated 07-06-2011.
2. Respondent/plaintiff filed suit (C.S. No,117/02) in the trial Court and on 07-08-2009, during trial proceedings the court referred the suit to arbitration. The composition of the arbitrators was that respondent/plaintiff appointed one arbitrator, the second arbitrator was appointed by appellants while the third was appointed as umpire. The arbitrator appointed by respondent/plaintiff and the umpire passed the award dated 07-06-2011 while the third arbitrator, appointed by appellant did not join the proceedings of arbitration.
3. We have heard arguments of the parties and have gone through the material available on file.
Counsel for appellant contended that the objections were fit to be accepted in the light of attending circumstances of the case in hand. In the opinion of learned counsel for appellant, the objections were fit to be accepted as the arbitrator appointed by appellant did not join the arbitration proceedings. Counsel for appellant further argued that while passing the award, the arbitrators who passed the same did not proceed ex-parte against appellant nor have served any notice of the proposed proceedings on the appellant or the arbitrator appointed by the appellants.
On the other hand, learned counsel for respondent/ plaintiff defended the impugned order contending that the umpire has joined arbitrator appointed by respondent/plaintiff, therefore, the award is correct and the objections were rightly dismissed by the trial court. We have noted that the arbitration in hand is an arbitration with intervention of the court and the same can be done only in accordance with the provisions of Arbitration Act. It is not disputed that learned trial court did not frame any issues in the light of objections and reply thereto nor has recorded any evidence of the parties in proof and rebuttal of the same. In our opinion, learned trial court was bound to do so as the same is a requirement of law. Moreover, learned trial court has made the award rule of the court, which admittedly contained material beyond the subject matter of the suit. It is also not disputed that the arbitrators did not record any evidence of the parties nor have heard the parties before passing the award. We have gone through order sheet dated 07-08-2009 which goes against the respondent and attained finality, therefore, also the reference of the case to arbitrators was wrong in the eye of law.
4. In the sequel of above discussion, we allow this appeal throughout, set aside impugned judgment/decree dated 10-11-2011, accept the objections dated 16-07-2011 of the appellant and cancel the award. We further direct for remanding the case to the trial Court with direction to resume trial of the case from the stage where it was given up. Respondent to bear costs. This file be consigned to record.