Co-operative housing society rights: arbitration award need not be registered, and instalment directions remain within arbitral power.

An arbitration award concerning transfer of shares and membership in a tenant co-partnership co-operative housing society did not attract compulsory registration under section 17(1)(b) of the Registration Act, 1908, because the entitlement was treated as a society membership right carrying occupation of the flat, not an independent conveyance of immovable property; the objection to the award failed. The award also was not vitiated by the direction for payment by instalments, since an arbitrator may regulate the mode and time of payment as part of the substantive adjudication. The challenge to the award was rejected and the award was sustained.

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Issues: (i) Whether the arbitration award required compulsory registration under section 17(1)(b) of the Registration Act, 1908 because it dealt with rights in a flat in a co-operative housing society. (ii) Whether the arbitrators exceeded their jurisdiction by directing payment of the amounts awarded by instalments.

Issue (i): Whether the arbitration award required compulsory registration under section 17(1)(b) of the Registration Act, 1908 because it dealt with rights in a flat in a co-operative housing society.

Analysis: The flat belonged to a tenant co-partnership housing society, and the deceased member's entitlement was essentially a right arising from membership and shareholding in the society, carrying with it only the right to occupy the flat. The award, read in this context, was concerned with transfer of shares and membership in the society rather than the creation or declaration of an independent right in immovable property. Section 41 of the Maharashtra Co-operative Societies Act, 1960 excludes instruments relating to shares in a society from the compulsory registration requirement under section 17(1)(b) of the Registration Act, 1908. The award therefore fell outside the mischief of compulsory registration.

Conclusion: The award did not require registration, and the objection on that ground failed.

Issue (ii): Whether the arbitrators exceeded their jurisdiction by directing payment of the amounts awarded by instalments.

Analysis: An arbitrator, while determining the amounts payable between the parties, has an implied power to regulate the manner and time of payment, including payment by instalments. The fixing of instalments forms part of the substantive adjudication and is within the arbitrator's discretion. The directions in the award regarding instalments were therefore not beyond jurisdiction.

Conclusion: The arbitrators acted within jurisdiction in directing payment by instalments.

Final Conclusion: The petition to set aside the award was rejected, and the award was sustained.

Ratio Decidendi: An award dealing with transfer of shares and membership in a tenant co-partnership co-operative housing society does not require registration under section 17(1)(b) of the Registration Act, 1908, and an arbitrator may lawfully regulate the mode and time of payment of sums awarded, including by instalments.

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