Severability of arbitration award upheld: unregistered charge failed, but independent money liability remained enforceable.

An arbitration award that merely recited an earlier partition did not itself require registration, but the fresh charge created over immovable property was a transaction affecting such property and was ineffective without registration. The absence of registration, however, did not invalidate the entire award because the personal money liability found on accounting was severable from the charge and remained independently enforceable. The award was also admissible in evidence once the necessary stamp duty and penalty had been paid. The registration objection therefore defeated only the charge over immovable property, not the enforceable monetary obligation.

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Issues: (i) whether an arbitration award that refers to an earlier partition, but also creates a charge on immovable property, is compulsorily registrable and wholly inadmissible in evidence for want of registration; (ii) whether the unregistered charge renders the entire award unenforceable, or whether the personal money liability embodied in the award is severable and enforceable; (iii) whether the award was inadmissible for non-compliance with stamp law.

Issue (i): whether an arbitration award that refers to an earlier partition, but also creates a charge on immovable property, is compulsorily registrable and wholly inadmissible in evidence for want of registration.

Analysis: A recital in the award merely acknowledging that the immovable properties had already been partitioned did not itself create or declare any right, title, or interest in immovable property. It was only a reference to an existing fact. The part of the award creating a charge, however, was a fresh transaction affecting immovable property and required registration. Under the Registration Act, an unregistered document required to be registered cannot affect immovable property or be received as evidence of a transaction affecting such property, though it may still be admissible for collateral purposes where the law permits.

Conclusion: The recital of partition did not require registration, but the charge did; the award was not wholly inadmissible on the ground of registration.

Issue (ii): whether the unregistered charge renders the entire award unenforceable, or whether the personal money liability embodied in the award is severable and enforceable.

Analysis: The award embodied two distinct matters: a personal obligation to pay money found due on accounting, and an additional right to recover the same amount from immovable property by way of charge. These were severable transactions. The personal liability stood independently and was not contingent on the charge. Therefore, the invalidity of the charge for want of registration did not destroy the whole award, and effect could validly be given to the enforceable part.

Conclusion: The personal money liability was severable and enforceable, and the unregistered charge could be ignored.

Issue (iii): whether the award was inadmissible for non-compliance with stamp law.

Analysis: The award had been filed with a stamped copy and the necessary duty and penalty had been paid. Once the required duty and penalty were paid, the objection under the Stamp Act could not prevail against admission of the award in evidence.

Conclusion: The award was admissible in evidence notwithstanding the stamp objection.

Final Conclusion: The award was held admissible in evidence in its severable and enforceable part, the charge on immovable property alone being ineffective for want of registration; the challenge failed.

Ratio Decidendi: Where an award or similar instrument contains both a severable personal money obligation and a separate charge on immovable property, the unregistered charge does not invalidate the entire instrument if the personal obligation is independently enforceable; registration objections defeat only the part affecting immovable property.

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