Summary
An arbitral award confined to determining land price could not be executed as a decree compelling conveyance. The purchaser’s right to seek specific performance arose under the underlying agreement after exercising its purchase option, and its unconditional withdrawal of that suit abandoned the claim. The Court set aside the orders compelling a sale deed, while directing payment of the deposited Rs.50 lakh with accrued interest and another Rs.10 lakh towards litigation and other expenses.
Issues
- Whether an award fixing land price authorised execution of a sale deed.
- What followed from unconditional withdrawal of the specific-performance suit.
- Whether substantial justice justified relief beyond the award.
Provisions considered
- Order XXIII Rule 1(4), Code of Civil Procedure, 1908Applied the consequences of unconditional withdrawal and abandonment of the specific-performance claim. (¶¶ 29, 32, 33)
Held
- The reference and award were confined to fixing land price. The purchaser retained an option to accept or reject that price; the award itself neither required conveyance nor constituted an enforceable concluded sale contract. Specific performance had to be sought under the agreement. (¶¶ 22, 23, 24, 25, 28, 30, 33, 44)
- By unconditionally withdrawing its specific-performance suit, the purchaser abandoned its claim to execution of the sale deed under the agreement. It could not obtain the same relief indirectly through execution of the price-fixing award. (¶¶ 29, 32, 33)
- An executing court may construe an award or decree but cannot change its nature or grant relief not awarded. An appeal to substantial justice could not authorise a direction to convey land absent any such direction in this award. (¶¶ 30, 31, 34, 35, 36, 37, 38, 42, 43, 44)
- The award did not itself relate to title or an interest in immovable property. If treated as authorising conveyance, however, the executing court should also have considered the impact of non-registration; it had not done so. (¶¶ 40, 41)
- In light of the long litigation and the owner’s agreement to pay expenses, the deposited Rs.50 lakh with accrued interest was directed to be paid to the purchaser, together with a further Rs.10 lakh payable within six weeks. (¶¶ 46, 47, 48)
Result
Appeal allowed; High Court judgment and the executing court’s order compelling conveyance set aside. Deposited Rs.50 lakh with accrued interest payable to respondent, plus Rs.10 lakh from appellants within six weeks towards litigation and other expenses.