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2018 Supreme(Online)(Cal) 1

CALCUTTA HIGH COURT
Soumen Sen, J.
Jaichandlal Ashok Kumar and Co. Pvt. Ltd. v. Nawab Yossuf and Another
G. A. No. 1572 of 2015



Advocates:
For the Appellants/Petitioners: Mr. Ajoy Krishna Chatterjee, Mr. Sabyasachi Chowdhury
For the Respondents: Mr. Ranjan Deb, Mr. Surajit Nath Mitra

The appellate court can validate or invalidate a decree based on the jurisdiction exercised, distinguishing between errors within jurisdiction and those that constitute a nullity due to inherent lack of authority.

Headnote:(A) Code of Civil Procedure, 1908 - Section 47 - Arbitration and Conciliation Act, 1940 - Section Coverage - Executability of award - The appellate court granted specific performance despite the arbitrator denying it. The court stated that an appellate court can only intervene to ensure the arbitrator did not act beyond jurisdiction. The judgment given by the Supreme Court dismissing the special leave petition does not validate the appellate decree; it merely signifies leave to appeal was not granted. The appellant failed to show any cogent reason to declare the decree null. (Paras 5, 26, 39)

(B) Jurisdiction - Erroneous exercise vs. Absolute lack of jurisdiction - The distinction between an error made in jurisdiction and a complete lack of jurisdiction is fundamental, where only the latter constitutes a nullity. (Paras 19, 30).

Facts of the case:
The applicant challenges the executability of a decree granting specific performance. The appellate court disagreed with the arbitrator's decision despite it being within the arbitrator's discretion. The applicant claims that the appellate court acted beyond its jurisdiction, rendering the decree a nullity. (Paras 2, 3, 9)

Findings of Court:
The decree remains enforceable as no inherent lack of jurisdiction was found, and the objections raised were precluded by the principle of res judicata due to prior decisions. (Paras 36, 39)

Issues: The case centered on the jurisdiction of an appellate court to grant specific performance and the implications of the Supreme Court's dismissal of the SLP concerning the original decree. (Paras 4, 15)

Ratio Decidendi: An appellate decree cannot be deemed a nullity unless it is established that the appellate court acted without jurisdiction. The distinction between mere errors of law and a lack of jurisdiction is crucial in determining enforceability. (Paras 19, 37)

Result: Application dismissed.

Table of Content
1. establishment of judgment debtor's application and context (Para 1 , 2 , 3 , 5 , 6)
2. court's observations on jurisdiction and validity (Para 4 , 12 , 14 , 16 , 19 , 20 , 21)
3. arguments regarding the nature of the appellate decree (Para 7 , 8 , 9 , 10 , 11 , 13)
4. principles governing executability under s.47 (Para 15 , 18 , 22 , 23 , 26 , 27)
5. distinction between void and voidable decrees (Para 24 , 31 , 32 , 33)
6. final observations on the validity and enforceability of the decree (Para 34 , 36 , 37 , 38)
7. conclusion of the court’s judgment (Para 40)

1. The judgment debtor is the applicant.

2. The judgment debtor has filed this application under S.47 of the Code of Civil Procedure challenging the executability of a decree passed by the appellate court on 22nd August, 2013.

3. The appellate court granted a decree for specific performance which the arbitrator as well as the trial court had declined.

4. The arbitrator although had arrived at a finding that the claimant / decree - holder is ready and willing to perform its obligation and would be otherwise entitled to specific performance of the development agreement but had declined to exercise discretion in favour of the claimant / decree - holder. In an application for setting aside of the award, the trial court declined to interfere with the award and upheld the discretion exercised by the arbitrator. However, the appellate court interfered with the award and the relevant portion of the order of the appellate court reads: -
“On a close look to the decisions cited at the at the bar and discussed above, we feel, in a contract of the like nature, once the arbitrator was satisfied the developer was entitled to specific performance the relief could not be denied on the grounds mentioned therein. The arbitrator categorically held, the developer was ready and willing to perform their obligation. They had the capacity to do so. The sentimental or emotional reason cannot create any impediment in performing the same. The arbitrator talked about non - cooperation on the part of the owner. Mr. Deb rightly contended in case owner would not demolish the developer would demolish the same with the Court's supervision. We fully agree with Mr. Bachawat, on the plea of Natural Justice, the arbitrator should not have allowed the developer to submit a chart at the fag end of the arbitration. In any event, the arbitrator recorded, she did not rely on the said chart. ON the top of it, at the time of hearing, Mr. Deb categorically made it clear. The developer was not interested in pecuniary damage. Hence, such issue would be academic.
While giving reply, Mr. Bachawat relied upon Yeshwantrao ganpatrao (Supgra), the paragraph relied on by him quoted (Supra) would not be of any assistance to us. The Division Bench observed, the Court considering the award could not travel beyond the award. It had no jurisdiction to attach list to its decree that was not attached to the original award. We fail to appreciate. The developer approached the arbitrator with the principal prayer for specific performance of the agreement dated January 28, 1989. If we look to page - 215 (Volume - III) we would find the same appearing in the statement of claim. The learned arbitrator declined to grant such relief, learned Judge while considering the award also declined. The Court of appeal being an extension of the original proceeding would certainly be competent to examine the award as to whether the arbitrator committed any illegality in not granting the said relief. The scope of judicial scrutiny on this score is limited however, it would not be right to say, this Court would not be competent to consider such prayer. We reject the contention of Mr. Bachawat on that score.
On the scope of the Court's power to set aside the award under the old law we are of the view, once the arbitrator considered the issue, applied her mind, analyze the evidence and came to final conclusion, the developer was not at f



































































































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