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Issues Involved:
1. Applicability of The Usurious Loans Act, 1918. 2. Interpretation of "any decree of a Court" in the context of arbitral awards. 3. Authority of the Executing Court to go behind the decree. 4. Challenge to the arbitral award in execution proceedings. Issue-Wise Detailed Analysis: I. Applicability of The Usurious Loans Act, 1918: The judgment examines whether The Usurious Loans Act, 1918 applies to the present proceedings. It is determined that the Act applies to suits for the recovery of loans or enforcement of securities, but not to execution proceedings. The term "suit to which this Act applies" is specifically defined and does not extend to execution proceedings. The judgment also references the Arbitration and Conciliation Act, 1996, emphasizing that judicial intervention is limited to what is provided within the Act, and arbitration awards are to be enforced as decrees of the court. Therefore, the Act does not apply to the present execution proceedings. II. Interpretation of "any decree of a Court": The court examines whether the expression "any decree of a Court" in the proviso to Section 3(1) of The Usurious Loans Act, 1918 includes arbitral awards made on agreed terms. It is held that an arbitral award, once the time for challenging it under Section 34 of the Arbitration and Conciliation Act, 1996 has expired, is enforceable as a decree of the court. The judgment clarifies that there is no distinction between an arbitral award on agreed terms and one on the substance of the dispute, as both have the same status and effect. Thus, the arbitral award in question is treated as a decree of the court. III. Authority of the Executing Court to go behind the decree: The judgment reaffirms the principle that an executing court cannot go behind the decree. It must enforce the decree as it stands unless it is void ab initio or without jurisdiction. The court cites multiple Supreme Court decisions to support this principle, emphasizing that the executing court cannot entertain objections related to the correctness of the decree. In this case, there is no allegation of the arbitral tribunal lacking jurisdiction, and the objections raised pertain to the interest rate agreed upon by the parties, which has already been adjudicated in the arbitral award. IV. Challenge to the arbitral award in execution proceedings: The court addresses whether the judgment debtors can challenge the arbitral award in execution proceedings, having chosen not to file a petition under Section 34 of the Arbitration and Conciliation Act, 1996. It is held that allowing such objections would effectively set aside the arbitral award, which is only permissible under Section 34. Since the judgment debtors did not file an application under Section 34 within the prescribed time, they cannot now raise objections in the execution proceedings. The court concludes that the judgment debtors cannot be permitted to do indirectly what they cannot do directly. Conclusion: The objections raised by the judgment debtors are rejected, and the applications are dismissed. The arbitral award is to be enforced as a decree of the court, and the executing court cannot go behind the decree. The Usurious Loans Act, 1918 does not apply to the present execution proceedings, and the arbitral award, having not been challenged within the stipulated time, is final and binding.
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