High Court Of Delhi
BANWARI LAL AND SONS PRIVATE LIMITED - Appellant
Versus
UNION OF INDIA - Respondent
L.P.A. 88 of 1973
Decided On : 05/25/1981
In these two appeals the question that arises for decision is whether an appeal lies to the division bench of the High Court under clause 10 of the Letters Patent from the order of the single judge raising the compensation form the arbitrators award under Section 11 of the Requisitioning and Acquisition of Immoveable Property Act, 1952. If the decision of the single judge can be termed as a judgment, then an appeal to the division bench is maintainable, otherwise not. Dismissing the appeal.
Held:
1. The decision of the single judge on appeal form the arbitrators award is not a judgment. It is only a determination. Every judgment is a determination of existing rights but every determination is not a judgment. The term judgment in the Letters Patent of the High Court means in civil cases a decree and not a judgment in the ordinary sense. (S. J. Bhogilal v. Dakore Temple committee, AIR 1925 PC 155 referred to).
2. Arbitration referred to in clause (g) of Section 8(1) cover the entire proceedings from their commencement before the arbitrator to their termination in the High Court on appeal where an appeal has been preferred. Although the appeal is preferable before the High Court under Section 11, the appeal is against the award of the arbitrator. When the High Court is hearing an arbitration matter, its decision is as much an award as that of the arbitrator. Though the High Court, no doubt, function as a court, the nature of proceedings do not change. (Secretary of State for India v. Chelikani Rama Rao 43 Ind App 22 and Rangoon Botatoung Co. Ltd. v. The Collector 39 Ind App 197 referred to).
thereforee when the single judge varies the order of the arbitrator, what he does is that the substitutes his own award for that of the arbitrator. His assessment of compensation is also an award. If the proceedings throughout are arbitration proceedings, it cannot be said that the decision of the single judge is a judgment within clause 10 of the Letters Patent.
( 2 ) QUESTION Involved: Whether these appeals are competent, under clause 10 of Letters Patent.
( 3 ) AFTER noticing the observation of the Hon ble the S. C. in the cases reported as 1958 S. C. 1947 Hans Kumar v. Union of India and 1968 S. C. 384, Collector Varonsi v. Gouri Shanker, it was held that it can safely be concluded that the decision of the High Court in appeal under Section II of the Act from the decision of the arbitrator is not a judgment within the meaning of clause 10 of the Letters Patent. It is a "determination". Secondly the High Court acts as a court and not as a personal designata when it hears an appeal under Section 11 of the Act. Now if the decision of the High Court while hearing appeal under Section 11 is not a judgment but only a determination , as was held in Collector of Varansi, no appeal will lie to the division Bench under clause 10 of the Letters Patent. Held further that arbitrations referred to in clause (g) of Section 8 (1) cover the entire proceeding from their commencement before the arbitrator to their termination in the High Court on appeal where an appeal has been preferred. Although the appeal is given to the "high Court" under Section 11, the appeal is against the "award of the arbitrator, it seems that the High Court in hearing and deciding the appeal is hearing an arbitration matter and its decision is as much as an award as that of the arbitrator. Though the High Court no doubt functions as a court, as has been held in Collector of Varansi, the nature of the proceeding do not change. The remain arbitration proceedings, pure and unalloyed. The High Court is no less bound than the arbitrator to have regard to the consideration set out in Section 8 of the Act. When the Single Judge varies the order of the arbitrator, what he does is that he substitutes his own award for that of the arbitrator. His assessment of compensation is also an award. If the proceedings throughout are arbitration proceedings it cannot be said that the decision of the Single Judge is a judgment within clause 10 of the Letters Patent.
( 4 ) UNDER the Act the arbitrator gives an award. He is not a court. The resulting decision of the Single Judge on appeal is a determination . It is not a judgment. Every judgment is determination of existing rights but every determination is not a judgment. For example opinion given by the court in its consultative jurisdiction is not a judgment (see Sohan Lal v. Amin Chand, A. I. R. 1973 S. C. 2572.
( 5 ) THE Bench, therefore, concluded that the proceedings under Section 8 and 11 of the Act retain their character of arbitration proceedings throughout and the decision of the Single Judge on appeal from the arbitrator s award is not a "judgment". As a consequence these appeals under clause 10 of
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