MUNSHI RAM versus BANWARILAL

MUNSHI RAM versus BANWARILAL

A decree passed on an award as modified by a compromise between parties after award but before decree is not a nullity and is executable. The court is not prevented by the Arbitration Act, 1940 from recognising and incorporating such a compromise provided the essence of the award remains operative, and any modifications made by mutual agreement can be enforced within the decree to the extent they fall within the reference or are severable.

Parties
Appellant: Munshi Ram; Respondent: Banwarilal; Respondent: Faqir Chand
Jurisdiction
India
Judgment Date
09 January 1962
Procedural Posture
Civil Appeal by Special Leave / Supreme Court Appeal From Punjab High Court Judgment and Orders Dated November 26, 1952
Outcome
Appeal dismissed with costs.
Legal Topics
Execution of Arbitral Award, Modification of Award by Compromise, Power of Court Post Award, Stamp Duty on Awards and Decrees
Arbitration Civil Procedure Execution of Arbitral Award Modification of Award by Compromise Power of Court Post Award Stamp Duty on Awards and Decrees

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Parties

Munshi Ram

Appellant

Banwarilal

Respondent

Faqir Chand

Respondent

Procedural Posture

Civil Appeal by Special Leave / Supreme Court Appeal From Punjab High Court Judgment and Orders Dated November 26, 1952

Legal Issues

  1. 1 Whether a decree modified by compromise after an arbitral award is a nullity or executable under the Arbitration Act, 1940
  2. 2 Whether the court can pass a decree on an award as modified by a compromise between the parties
  3. 3 Whether proper stamp duty is required for such a decree to be executable

Ratio Decidendi

A decree passed on an award as modified by a compromise between parties after award but before decree is not a nullity and is executable. The court is not prevented by the Arbitration Act, 1940 from recognising and incorporating such a compromise provided the essence of the award remains operative, and any modifications made by mutual agreement can be enforced within the decree to the extent they fall within the reference or are severable.

Court Disposition

Appeal dismissed with costs.

Orders

  • Decree on award as modified by compromise is upheld as executable.
  • Costs awarded to respondents.