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Issues: Whether the award could be assailed on the grounds that the reference was not under the Arbitration Act and that the objectors had acquiesced in the arbitral process; whether the proceedings were vitiated by legal misconduct or breach of natural justice, including separate hearing of the parties and absence of individual notice to all respondents; and whether the arbitral directions concerning shares, the will, properties and future management were beyond the scope of reference or required registration.
Issue (i): Whether the award could be assailed on the grounds that the reference was not under the Arbitration Act and that the objectors had acquiesced in the arbitral process.
Analysis: The parties jointly sought reference of the company disputes to an umpire before judgment was pronounced, and the reference was therefore treated as falling within section 21 of the Arbitration Act, 1940. The objectors participated in the proceedings before the arbitrator without objection and only challenged the award after an adverse result. Such conduct amounted to acquiescence. The court also reiterated that interference with an award is confined to the statutory grounds, and it does not sit in appeal over the arbitrator's conclusions.
Conclusion: The reference and the award were held to be validly made under the Arbitration Act, 1940, and the objection on this score failed.
Issue (ii): Whether the proceedings were vitiated by legal misconduct or breach of natural justice, including separate hearing of the parties and absence of individual notice to all respondents.
Analysis: The record showed that the parties had agreed to a reconciliation-oriented hearing, that both principal disputants were heard, and that their joint statement was recorded that no further oral or documentary evidence was to be led. The court found no total denial of hearing. It further held that, because the dispute was expressly projected as one between the two family groups and their counsel had represented the respondents throughout, separate notice to every family member was not obligatory in the circumstances.
Conclusion: No legal misconduct or violation of natural justice was established, and the award was not vitiated on this ground.
Issue (iii): Whether the arbitral directions concerning shares, the will, properties and future management were beyond the scope of reference or required registration.
Analysis: The court held that the reference was comprehensive and covered the entire dispute between the family groups regarding the two companies and connected properties. On that basis, directions concerning rectification of shareholding, treatment of the challenged will, and identification of company-related properties were within the scope of the reference. The challenge based on unworkability of the management arrangement was rejected as a matter of substance. The registration objection was also repelled on the footing that the award, as filed and made rule of court, did not attract the pleaded bar in the manner contended.
Conclusion: The impugned clauses of the award were upheld as within jurisdiction, and the registration objection failed.
Final Conclusion: The objections to the award were rejected, and the award was enforced as the governing determination of the disputes between the parties.
Ratio Decidendi: Where all interested parties jointly refer the entire dispute in a company matter to an arbitrator before judgment, participate without protest, and agree to be bound, the court will not reopen the merits except on recognised statutory grounds such as misconduct, breach of natural justice, excess of jurisdiction or an error apparent on the face of the award.
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