In Brief
The plaintiff (Modi Transport Service) sued for settlement of coal transportation accounts. During the suit, the plaintiff unilaterally applied for appointment of a Chartered Accountant as commissioner/arbitrator to examine the accounts. The trial court appointed S.K. Mantri who submitted a report. The defendant opposed, arguing improper appointment. Lower courts and the High Court held it was a valid arbitration reference. The Supreme Court allowed the appeal, holding the appointment was of a commissioner under Code of Civil Procedure, not an arbitrator. No prior agreement existed—the application was filed solely by the plaintiff. A commissioner's report aids but does not bind the court, which must decide the suit on merits after considering objections to the report.
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