THE SECOND SCHEDULE of CPC : THE SECOND SCHEDULE: Repealed

Explanation using Example

Example 1:

Scenario: Two business partners, Raj and Simran, have a dispute over the terms of their partnership agreement. They initially agreed to resolve any disputes through arbitration as per the provisions of the Code of Civil Procedure, 1908.

Application: Before the Arbitration Act, 1940, they would have referred to the Second Schedule of the Code of Civil Procedure, 1908, for guidance on arbitration procedures. However, since the Second Schedule has been repealed by the Arbitration Act, 1940, Raj and Simran now need to follow the procedures outlined in the Arbitration Act, 1940, for resolving their dispute.

Outcome: Raj and Simran appoint an arbitrator as per the new act, and the arbitrator helps them reach a resolution without going to court.

Example 2:

Scenario: A construction company, BuildWell Ltd., and a supplier, SteelCo, have a disagreement over the quality of materials supplied. Their contract includes an arbitration clause referring to the Code of Civil Procedure, 1908.

Application: Initially, they might look at the Second Schedule of the Code of Civil Procedure, 1908, for arbitration rules. However, since this schedule has been repealed by the Arbitration Act, 1940, they must now adhere to the arbitration procedures specified in the Arbitration Act, 1940.

Outcome: BuildWell Ltd. and SteelCo follow the updated arbitration process under the Arbitration Act, 1940, appoint an arbitrator, and resolve their dispute efficiently without involving the court system.