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1970 Supreme(Online)(All) 43

ALLAHABAD HIGH COURT
Dhavan, Hari Swarup, Gangeshwar Prasad, JJ
Basdeo Sahai – Appellant
Versus
Gauri Shanker – Respondent
Civil Revision No. _____



Advocates:
N. C. Upadhyaya
_____

An appellate ruling setting aside an arbitrator's award on misconduct claims is a 'case decided' under CPC. Omission to address immaterial issues is not jurisdictional misconduct affecting award validity.

Headnote:(A) Arbitration Act, 1940 - Section 30 - Civil Procedure Code, 1908 - Section 115 - Arbitration award contested on grounds of misconduct - The plaintiff claimed ownership based on wills and familial connections, while defendants denied relation and will execution - The arbitrator dismissed the plaintiff's claims, leading to a legal challenge regarding misconduct relating to fee acceptance and omission to decide adoption issues - The appellate court found misconduct and set aside the award, but the Full Bench determined the original ruling held jurisdictional error due to improper evaluation of arbitrator's actions. (Paras 1-50)

(B) Jurisdiction of Courts - An order setting aside an award is deemed a case decided under Section 115, CPC. Misconduct finding overturned as it did not affect award's jurisdiction. (Paras 4, 20, 50)

Facts of the case:
The plaintiff claimed property ownership based on two wills, alleging relationship to the deceased owner. The case was referred to arbitration where the arbitrator found the plaintiff's claims unproven, subsequently leading to an appeal overturning the award due to claimed misconduct.

Findings of Court:
The appellate court's findings regarding misconduct were based on the plaintiff's claims that the arbitrator failed to find adoption and accepted excess fees. The Full Bench disagreed, confirming that the arbitrator acted within permissible parameters.

Issues: Whether the arbitrator's conduct amounted to misconduct impacting the validity of the award, and whether appellate findings constituted a case decided for revisional jurisdiction.

Ratio Decidendi: The necessitated reevaluation showed the original arbitrator's findings on the execution of wills were correct, and omission of the adoption question was not material to the outcome. The appellate court erred by misapplying what constitutes jurisdictional misconduct under the Arbitration Act.

Result: Revision allowed, appellate order set aside, Munsif's order restored.

Table of Content
1. background of the case and parties involved. (Para 1 , 2)
2. details of arbitration proceedings and objections. (Para 3 , 4)
3. legal analysis of whether an order affects jurisdiction. (Para 5 , 6 , 7 , 8)
4. discussion on grounds of misconduct by the arbitrator. (Para 9 , 10 , 11 , 12)
5. conclusion on the proper handling of jurisdiction by courts. (Para 15 , 16 , 17)
6. final ruling on the revision application. (Para 18 , 19 , 33 , 35 , 50)

1. This application in revision has been laid before this Full Bench upon a reference made by Dhavan, J. It is directed against an order of the Judge Small Cause Court, Agra (exercising the powers of a Civil Judge) by which he reversed in appeal an order of the Munsif Fatehabad, Agra, refusing to set aside an award and sent back the case to him with the direction to hear and decide the suit in which the award was given.

2. The relevant facts are these. Basdeo Sahai, plaintiff, filed Suit No. 121 of 1949 in the court of the Civil Judge, Agra, against Gauri Shanker, Basant Lal and Sukh Ram for a declaration that he was in possession of the property in suit which is a house situate in Qasba Fizabad, district Agra as its exclusive owner and that the defendants had no right to disturb his possession over it in any manner. The suit was transferred to the court of the Munsif Fatehbad, Agra, by an order of the District Judge. During the pendency of the suit Gauri Shanker and Basant Lal defendants died and their heirs were brought on record. The case of the plaintiff was that the house in suit was the self - acquired and exclusive property of Saktoo who was an adopted son of Mukund and his wife and who succeeded to the entire property left by them as such. It was alleged that after the death of Saktoo his property devolved upon his son Gur Dayal and that the plaintiff was the son of Gur Dayal's sister, Smt. Jamuna Devi. It was further alleged that Gur Dayal executed a will dated January 16, 1916 providing that after his death his entire property would go to his wife Smt. Gulab Kuer and that the plaintiff would become the owner thereof after the death of Smt Gulab Kuar. In accordance with the provisions of the aforesaid will Smt. Gulab Kuar got the property left by her husband and she too executed a will dated May 4,1947. bequeathing all her property to the plaintiff. The plaintiff laid claim to the house in dispute under the two wills mentioned above and, alternatively, as an heir of Gur Dayal by virtue of being his sister's son. The plaintiff asserted that he had been exercising rights of ownership in the disputed house but as the defendants had recently put forward a claim in respect of it by filing an objection under Order XXI, R.100, C.P.C. in proceedings for execution of a decree for ejectment obtained by him against a tenant of the house and as their objection had been allowed he was compelled to institute the suit. The defendants resisted the suit and repudiated the title of the plaintiff. They denied that the plaintiff was Gur Dayal's sister's son or related to Gur Dayal in any manner and stated that neither Gur Dayal nor his widow Smt. Gulab Kuar had executed any will. They further contended that the house in dispute had been acquired by Saktoo from joint family funds, that his son Gurdayal was the owner thereof by right of survivorship after the death of Saktoo, that Gur Dayal had adopted as his son one Raghubir Prasad who died six months after the death of Gur Dayal and that Smt. Gulab Kuar inherited the house thereafter as a limited owner. According to the defendants, neither Gur Dayal nor his widow Smt. Gulab Kuar was competent to execute any will in respect of the house and the wills, if executed, were totally ineffective.

3. During the pendency of the suit the parties agreed that the whole matter in difference between them in the suit be referred to the arbitration of Sri Mathura Prasad Kacker, an Advocate of Agra, and the learned Munsif, accordingly, made a reference on



























































































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