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1962 Supreme(MP) 102

High Court Of Madhya Pradesh
A. H. Khan, J.
GUTTE, RAGHUVAR - Appellant
Versus
PUNNOO, KHACHARA KACHHI - Respondents
Second Appeal 54 Of 1962
Decided On : 08/03/1962

Advocates Appeared:
T.N.SAXENA

The main legal point established in the judgment is that an arbitration award is binding between the parties and can bar a subsequent suit, in accordance with Section 32 of the Indian Arbitration Act.

Headnote:

ARBITRATION - DISPUTED LAND - The court held that the arbitration award was binding between the parties and barred the present suit, in accordance with Section 32 of the Indian Arbitration Act. The award operated to merge and extinguish all claims embraced in it, and the fact that the parties had not carried out its terms was not sufficient to deprive the award of its effect.

Fact of the Case:

The plaintiff filed a suit for a declaration of ownership of disputed land and for possession. The main defence was based on an arbitration award, Ex. D. 3, which allowed the disputed fields to remain in the possession of the defendant's deceased uncle on payment of Rs. 180 to the plaintiff.

Finding of the Court:

The court found that the suit was not maintainable as the arbitration award was binding between the parties, in line with Section 32 of the Indian Arbitration Act. The award operated to merge and extinguish all claims embraced in it, and the suit was non-suited.

Issues: The main issue was whether the suit for ownership and possession of disputed land was maintainable in light of the arbitration award, Ex. D. 3.

Ratio Decidendi: The court held that the arbitration award was binding between the parties and barred the present suit, in accordance with Section 32 of the Indian Arbitration Act. The award operated to merge and extinguish all claims embraced in it, and the fact that the parties had not carried out its terms was not sufficient to deprive the award of its effect.

Final Decision: The appeal was allowed with costs throughout, the judgments and decrees of both lower courts were set aside, and the plaintiff was non-suited.

A. H. KHAN, J.

( 1 ) PLAINTIFF Punnoo filed a suit against Gutte, nephew of deceased Mangli for a declaration that he is the owner of disputed land and that Mangli, uncle of the defendant, was an influential person and so he got his name wrongly entered in revenue papers. The plaintiff also prayed for pssession. The trial Court decreed the suit and this decision was upheld in appeal.

( 2 ) THE main defence was that although the fields were originally bought by the plaintiff Punnoo, yet at the time of purchase some fields were in the possession of mangli, uncle of the defendant. The dispute about these fields was referred to a panchayat by the parties. The Panchas gave an award which is Ex. D. 3, according to which the disputed fields having been already in possession of Mangli, were allowed to remain in his possession on payment of Rs. 180/-to Punnoo. This award was signed by the Panchas as well as the plaintiff and Mangli. Thereafter Mangli continued to be in possession of them and this suit has been brought after the death of Mangli. The plea of the defendant was that in view of Section 32 of the Indian Arbitration Act, this suit was not maintainable.

( 3 ) THE contention is well founded. It is a well settled principle of law that where parties to a dispute have pursued arbitration proceedings resulting in an award, none of them can after the award is made, get rid of it by ignoring it. Section 32 of the Arbitration Act embodies the principle and bars the present suit.

( 4 ) THERE appears to be some controversy between parties as to whether Mangli paid Rs. 180/-to the plaintiff. The plaintiff says that he did not accept Rs. 180/-, a sum mentioned in the award whereas the defendant says that this sum was paid to him. Without expressing any opinion as to whether this amount was paid or not, i am of the opinion that an award is binding between the parties in all matters which it professes to decide, and the fact that the parties to the award had not carried out its terms is not sufficient to deprive the award of its effect.

( 5 ) IN Lutufallah Khudabaksh v. Muhammad Sidik, AIR 1946 Sind 117, it has been held that an award operates to merge and extinguish all claims embraced in the award and after the award is made, the award is the only basis by which the rights of the parties can be determined and that the award bars an action on the original demand. I find myself in respectful agreement with the view. In the instant case the award (Ex. D. 3) has been admitted by the plaintiff and I have no hesitation in holding that the present suit is not maintainable.

( 6 ) APPEAL allowed with costs throughout. The judgments and decrees of both the lower courts are set aside and the plaintiff is non suited.


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