1974 (1) TMI 106 - SC - Indian Laws

Supreme Court dismisses appeal due to unregistered arbitration award exceeding Rs. 100.

The Supreme Court dismissed the civil appeal and special leave petition in a dispute over an arbitration award involving partners of a company. The Court ... - Issues:1. Validity of the arbitration award for pronouncing judgment.2. Requirement of registration for the award involving immovable property.3. Interpretation of the award regarding creation of rights in immovable property.4. Enforceability of the award in absence of registration.Analysis:The Supreme Court addressed the civil appeal and special leave petition concerning an arbitration award dispute between partners of New Bengal Engineering Works. The Court noted that the award was challenged on grounds of uncertainty and lack of registration for immovable property rights worth over Rs. 100. The appellant argued that the award did not require registration as it assigned the respondent's share in the partnership. However, the Court emphasized that the award did not explicitly assign the share to the appellant, necessitating registration under the Registration Act. The Court cited precedents to support the requirement of registration for immovable property rights.Furthermore, the Court analyzed the award's language, highlighting clauses that exclusively allotted partnership assets to the appellant, making him 'absolutely entitled' to them. The Court found that the award created rights in immovable property exceeding Rs. 100 in favor of the appellant, mandating registration. As the award remained unregistered, it could not be considered for judgment. The Court clarified that Section 17 of the Arbitration Act presupposes a valid award, which, in this case, required registration for enforceability.Moreover, the Court emphasized that the award's clauses were interdependent, with various terms constituting consideration for the creation of absolute rights in the factory and other properties for the appellant. The Court concurred with the single Judge's decision that the award needed registration for enforceability, leading to the dismissal of the appeal and special leave petition. The respondent was awarded costs for the appeal, and both the appeal and petition were ultimately dismissed.In conclusion, the Supreme Court's judgment underscored the significance of registration for arbitration awards involving immovable property rights, emphasizing the need for clarity and compliance with legal requirements to ensure enforceability and validity of such awards.