1914 Supreme(SC) 17
Privy Council
Ameer Ali, Sir John Edge , Parmoor, Justice Lords Sumner , JJ.
Mt. Amir Begam, Defdt. -Appellant
Versus
Syed Badr-ud-din Husain and others -Resopndent
Decided On : 27-03-1914
Important Points
Subject
Civil Law - Arbitration
Act Referred
Headnote
(B) Arbitration - Separability of award - Where a portion of an award is outside the power of the arbitrator but is separable from the rest, the remainder of the award, if good, can be maintained.
Facts of the case:
A dispute regarding the estate of a deceased person and a will was referred to a sole arbitrator. The arbitrator published an award distributing the property among the heirs according to personal law and confirmed the appointment of an executor. The award included the valuation of various properties and the treatment of a mortgage debt as a charge on the entire estate. One party challenged the award, alleging procedural irregularities and corruption, specifically claiming that certain properties were undervalued or overvalued to favor another party.
Findings of Court:
The court held that the allegations of procedural irregularity were not proved. Regarding the charges of corruption and partiality, the court found that the arbitrator's choices in valuation and allotment were within his discretion and not influenced by corrupt motives. The court noted that the lower court erred by using evidence intended to prove corruption to instead criticize the arbitrator's valuation methods. A specific portion of the award assigning land by way of partition was found to be outside the arbitrator's power but was held to be separable from the rest of the award.
Issues: Whether the award was vitiated by the misconduct or corruption of the arbitrator; whether the arbitrator's evidence could be used to review the merits of his valuation; and whether an invalid portion of the award rendered the entire award void.
Ratio Decidendi: An award can only be set aside on grounds of corruption or misconduct. Evidence of an arbitrator admitted to investigate charges of dishonesty cannot be used to scrutinize the merits of the decision on matters within the arbitrator's jurisdiction. Furthermore, if an invalid part of an award is separable, the remaining valid portions can be maintained.
Result: Appeal dismissed.
Legal Category Hierarchy
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practice and procedure
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arbitration
- misconduct of arbitrator
- filing of award
- separability of award
- evidence
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arbitration
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family law
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succession
- muhammadan law
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succession
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property law
- mortgages
- adverse possession
Hunter, Watkins , Douglas Grant, G.R. Lowndes, Upjohn, B. Dube, DeGruyther
Lord Parmoor:-
This is an appeal from a decree of the Court of the Judicial Commissioner of Oudh, dated the 15th August, 1911, reversing a decree of the Subordinate Judge of Lucknow passed by him upon an application by respondent 1 for the filing of an award.
On the 6th of May, 1909, one Khwaja Farid-ud-din Husain (hereinafter called the testator) died at Lucknow, leaving considerable property, and has as heirs, according to Muhammadan law, a full sister (the appellant herein), two stepbrothers-respondents 2 and 3, two stepsisters respondents 4 and 5, and a widow respondent 6. Shortly before his death, the testator made a will by which he appointed respondent 1 his executor, and, as he was entitled to do by Muhammadan law, bequeathed him one third of his property. After the death of the testator disputes arose between the parties interested, and litigation was commenced. On the 6th August, 1909, the matters in dispute were referred to the sole arbitration of Munshi Sakhawat Ali under a submission of reference in the following forms :-
"Whereas there exists a dispute amongst us, the executants, regarding the estate of Khwaja Farid-ud-din, deceased, and the deed of will, dated the 30th April, 1909, we, the executants, have, of our own accord, appointed Munshi Sakhawat Ali, as a referee for the purpose of settling the matter in dispute. We agree and record that the said refree may decide it in whatever way he may deem proper, we, the executants, shall remain bound by the award. Therefore we have executed these few presents by way of a deed of agreement so that they may serve as an authority."
The arbitrator entered upon the reference and published his award on the 16th July, 1910. He confirmed the appointment of respondent 1 as executor, and gave him one third of the property. The remaining property fell to be divided according to Muhammadan law. The parties were entitled in the following shares :- The appellant to a third share, the respondents 1 and 6 jointly to a moiety, the respondents 2 and 5 to a sixth share. The arbitrator then proceeded to distribute the property in proportion to the shares to which the respective parties were entitled and for this purpose to make a valuation. The property so valued amounted in the aggregate to 91,942 rupees. There was a further item of 4,000 rupees, which was in no sense an ascertained or settled amount, but was based on a right to claim a rendition of accounts from a certain Ahmad Khan, and this item, for what it was worth was allotted to the appellant. The respondents 1 and 6 in respect of their joint half share were allotted property valued at 45,010 rupees. The appellant in addition to the above item of 4,000 rupees was allotted property valued at 30,879 rupees, and respondents 2 and 5 were allotted property, valued at 15,153 rupees. On the face of the award the distribution appears to be fairly made. So far as there is any advantage it is in favour of the appellant. This apparent advantage is referred to and explained by the arbitrator in his award.
At the time of the testator's death there was a considerable mortgage (20,000 rupees) affecting certain portions of his property. The arbitrator recognized that the allottees of the mortgaged property would be under a disadvantage with an apprehension of possible loss. He therefore decided that the debt of 20,000 rupees and its interest should, as among the parties entitled under the will, be a charge on the entire property of the testator, and proportionately on all the co-sharers, and that each co-sharer should be liable to pay in proportion to this share, and that each co-sharer should as soon as possible pay his proportionate share, both capital and interest, to the creditor. Whether this provision in the award did give full protection to the allottees of the mortgaged property, it is not within the province of their Lordships to decide. It is sufficient that matter was considered by the arbitrator and his decision cannot be questioned u