PARKASH CHAND KHURANA ETC. versus HARNAM SINGH & ORS.

PARKASH CHAND KHURANA ETC. versus HARNAM SINGH & ORS.

The arbitral award, having been made a rule of court, is executable and not merely declaratory. The clause entitling the respondents to recover possession of the property on the appellants' default was neither penal nor unenforceable. There is no evidence the Faridabad Development Board substituted the appellants as debtors in place of the respondents; consequently, the respondents were entitled to apply for execution and obtain possession according to the terms of the decree.

Parties
Appellant: Parkash Chand Khurana etc.; Respondent: Harnam Singh & Ors.
Jurisdiction
India
Judgment Date
28 March 1973
Procedural Posture
Civil Appeal / Appeal by Certificate From Judgment and Decree of Punjab & Haryana High Court in Letters Patent Appeal No. 139 of 1965
Outcome
Appeal dismissed
Legal Topics
Executability of Arbitral Awards, Effect of Default Clause, Return of Property on Payment Default, Penalty and Declaratory Relief, Privity of Contract
Arbitration Property Law Civil Procedure Executability of Arbitral Awards Effect of Default Clause Return of Property on Payment Default Penalty and Declaratory Relief Privity of Contract

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Parties

Parkash Chand Khurana etc.

Appellant

Harnam Singh & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal by Certificate From Judgment and Decree of Punjab & Haryana High Court in Letters Patent Appeal No. 139 of 1965

Legal Issues

  1. 1 Whether the arbitral award decree was executable to direct return of property upon default of payment
  2. 2 Whether the clause providing for recovery of possession was penal in nature
  3. 3 Whether the respondents were discharged as debtors of the Faridabad Development Board

Ratio Decidendi

The arbitral award, having been made a rule of court, is executable and not merely declaratory. The clause entitling the respondents to recover possession of the property on the appellants' default was neither penal nor unenforceable. There is no evidence the Faridabad Development Board substituted the appellants as debtors in place of the respondents; consequently, the respondents were entitled to apply for execution and obtain possession according to the terms of the decree.

Court Disposition

Appeal dismissed

Orders

  • Judgment of the High Court confirming execution of decree is affirmed.
  • Appellants to pay costs.