Summary
The Supreme Court approved the High Court’s decision to make a family-partition arbitral award a rule of court: the parties had consensually chosen related arbitrators, submitted claims and participated, and no misconduct was established. On a further settlement between their legal representatives, the Court modified the award and incorporated a property-wise chart into the decree, including payment of Rs 10 lakh in lieu of a jewellery share.
Issues
- Whether the consensual family-partition award was properly made a rule of court.
- How the parties’ further settlement should modify the award.
Held
- The parties had agreed to be bound by a unanimous award, consented to the arbitrators, submitted their competing claims and were heard. In the absence of established misconduct, the High Court rightly rejected the District Judge’s objections to the manner of the proceedings. (¶¶ 4, 6)
- The subsequent compromise replaced the respondents’ jewellery share with Rs 10 lakh payable by the appellant’s side within nine months. The chart also recorded possession arrangements, division of share certificates, waiver of specified balancing payments and continuation of third-party land litigation. These were consensual modifications rather than fresh adjudication of the third party’s rights. (¶¶ 7, 8, 9)
Result
Appeal disposed of on the modified award in paragraph 8, with its chart to form part of the decree. Rs 10 lakh payable within nine months in lieu of the jewellery share, carrying 9% annual interest in case of default. Popat Wala House possession to be handed over by 31 May 2020 and share certificates divided within three months; Rs 9,000 and Rs 12,334 balancing payments waived under the compromise. Registry directed to draw the decree.