Case Brief: N. Khadervali Saheb (Dead) by LRs. and Anr. Vs. N. Gudu Sahib(Dead) and Ors.

Deciding Authority: Supreme Court of India
Date of Judgement: 5th February, 2003
Bench: Justice M.B. Shah, Justice Ashok Bhan & Justice Arun Kumar
Facts of the Case: Briefly the facts are that a partnership firm was constituted comprising of four persons belonging to the same family. Disputes and differences arose between the partners which were ultimately referred to arbitration. The arbitrators made an award on 2nd October, 1972. The award was challenged by way of objections filed under Section 30 of the Arbitration Act, 1940 by some of the partners. The objection petition was contested by the other partners who prayed that the award be made a rule of the Court. The grounds of challenge to the award included misconduct on the part of the arbitrators as well as another ground that the award required registration under Section 17 of the Registration Act. The trial Court accepted both the objections holding that there was misconduct on the part of the arbitrators as also that the award was required to be compulsorily registered and since it was not registered it was inadmissible in evidence. This decision of the trial court was challenged before the High Court by way of a Civil Revision filed under Section 115 of the Code of Civil Procedure. The High Court found that in the facts and circumstances of the case it could not be said that there was any legal misconduct on the part of the arbitrators. Thus the first ground of attack against the award was found to be unsustainable. However, the High Court accepted the finding of the trial Court on the second ground, that is, the award was required to be compulsorily registered. Since the award was unregistered, it could not be made a rule of the Court. Hence the present appeals.
Judgement of the Case: The Supreme Court held that the appeals are accordingly allowed. The judgment of the High Court is hereby set aside. The result would be that the objections against the award dated 2nd October, 1972 stand rejected and the award is ordered to be made a rule of the Court. Decree to follow in terms of the award. Both the appeals stand disposed of. There will be no order as to costs.