Arbitration Act, 1940 – s.39(1)(6) – Disputes arose between appellant and respondent (brothers) after the death of their father, regarding partition of family properties – By an agreement they appointed three arbitrators, who were their close relatives for partitioning immovable properties, shares and jewellery – Arbitrators passed award mentioning therein that the decision given unanimously by the three of them will be binding on the parties – Respondent filed application before District Judge to make the award rule of the court – Objection raised by appellant – Application dismissed by the District Judge – Respondents filed appeal u/s.39(1)(6) – Allowed by High Court – Held: Parties by mutual consent agreed to the appointment of all the three arbitrators and submitted their respective claims before them – Arbitrators are close relatives of the parties and no misconduct is alleged against them – High Court rightly set aside the order of the District Judge holding that the award has been passed after due consideration – With a view to further amicably settle the matter, the parties arrived at settlement – In view of the same, with the consent of the parties, the award is modified – Registry to draft the decree in terms of the modified award.
Disposing of the appeal, the Court
HELD: 1.1 The parties had by mutual consent agreed to the appointment of all the three arbitrators and they had submitted their respective claims before the arbitrators. The arbitrators are the close relatives of the parties and no misconduct is alleged against the arbitrators. They have also filed the will made by their father before the arbitrators. Both the parties were present and gave their consent in writing. That apart, the parties also submitted their respective claims in the properties and the arbitrators after hearing the parties, passed the award. Having regard to the fact that the parties have consented for the arbitrators to consider their claims and pass the award, the High Court rightly set aside the order of the District Judge holding that the award has been passed after due consideration. In view of further settlement arrived at between the parties, with the consent of the parties, the award stands modified. Registry is directed to draft the decree accordingly. [Paras 6, 8 and 10][613C-E, H; 615-B]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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