Compulsory registration of arbitration award applies where the award itself effects partition of immovable property.

An arbitration award on a private reference that itself effects a partition of immovable property and operates to create or declare rights in that property is compulsorily registrable under section 17(1)(b) of the Indian Registration Act, 1908. The decisive test is the legal effect of the award on rights in immovable property, not whether further steps are needed for enforcement. An award under the Indian Arbitration Act, 1940 is final and binding between the parties, but if it purports to affect immovable property of the requisite value without registration, it cannot be used to affect that property.

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Issues: Whether an arbitration award made on a private reference, which effects partition of immovable property valued above Rs. 100, requires compulsory registration under section 17(1)(b) of the Indian Registration Act, 1908.

Analysis: An award under the Indian Arbitration Act, 1940 is final and binding between the parties, and it is not a mere waste paper until made a rule of the court. The enforceability of the award is distinct from the question whether the instrument itself purports to create, declare, assign, limit or extinguish rights in immovable property. The decisive test under section 17(1)(b) of the Indian Registration Act, 1908 is the legal effect of the award on rights in immovable property, not whether further steps are needed for enforcement. Where the award itself effects a partition and operates upon immovable property of the requisite value, registration is attracted and absence of registration disables the document from being used to affect such property.

Conclusion: The award was compulsorily registrable under section 17(1)(b) of the Indian Registration Act, 1908, and could not be treated as admissible to affect the immovable property without registration.

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