Civil Manual 274 — Section

Gujarat High Court Civil Manual (subordinate court practice), 1960

Statutory text

In some parts of the State, certain classes of moneylenders are in the habit of lending money to impecunious military and civil officers and to poor agriculturists, not on bonds or promissory notes but on arbitration awards, and the loan, the amount of which is usually much less than the amount stated as advanced in and payable by the award is not advanced until after these arbitration awards are actually filed in Civil Courts and decrees passed thereon. The object of this procedure is apparently to oust the jurisdiction of the Civil Courts and prevent them from inquiring into the terms of the transaction. It has been found that some Judges have been in the habit of ordering these so-called arbitration awards to be filed and passing decrees thereon without enquiring into their nature. Every Judge must, therefore, before allowing an award to be filed satisfy himself that there was, in fact some point of real difference between the parties, that it was submitted to arbitration and that there was a genuine arbitration upon that point.

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