RAMESH KUMAR & ANR. versus FURU RAM & ANR. ETC.

RAMESH KUMAR & ANR. versus FURU RAM & ANR. ETC.

The decrees obtained in suits under sections 14 and 17 of the Arbitration Act were vitiated by fraud, as there was no genuine dispute referred to arbitration, the awards were not registered as required by law, and the entire procedure was a collusive attempt to evade stamp duty and registration charges; therefore, such decrees are null and void and suits seeking such declarations are maintainable, not barred by sections 32 and 33 of Arbitration Act.

Parties
Appellant: Ramesh Kumar; Respondent: Furu Ram; Respondent: Kalu Ram; Advocate/arbitrator/defendant: C.B. Sharma
Jurisdiction
India
Judgment Date
18 August 2011
Procedural Posture
Civil Appeal / Appeal From Judgment of First Appellate Court and High Court
Outcome
Appeals allowed; decrees of trial court restored; judgments of first appellate court and High Court set aside.
Legal Topics
Challenge to Arbitral Awards, Validity of Compromise Decrees, Stamp Duty and Registration Fraud, Compulsorily Registrable Documents, Fraud Upon Court, Role of Advocates in Arbitration
Arbitration Property Law Fraud Registration Challenge to Arbitral Awards Validity of Compromise Decrees Stamp Duty and Registration Fraud Compulsorily Registrable Documents +2 more

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Parties

Ramesh Kumar

Appellant

Furu Ram

Respondent

Kalu Ram

Respondent

C.B. Sharma

Advocate/arbitrator/defendant

Procedural Posture

Civil Appeal / Appeal From Judgment of First Appellate Court and High Court

Legal Issues

  1. 1 Whether suits seeking declaration that decrees obtained in terms of arbitration awards are null and void are maintainable.
  2. 2 Whether the arbitration awards and decrees were obtained by fraud and misrepresentation.
  3. 3 Whether the arbitration awards were invalid for want of registration.

Ratio Decidendi

The decrees obtained in suits under sections 14 and 17 of the Arbitration Act were vitiated by fraud, as there was no genuine dispute referred to arbitration, the awards were not registered as required by law, and the entire procedure was a collusive attempt to evade stamp duty and registration charges; therefore, such decrees are null and void and suits seeking such declarations are maintainable, not barred by sections 32 and 33 of Arbitration Act.

Court Disposition

Appeals allowed; decrees of trial court restored; judgments of first appellate court and High Court set aside.

Orders

  • Judgments of first appellate court and High Court set aside.
  • Decrees of trial court decreeing suits filed by appellants restored.