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Issues Involved:
1. Validity of the Arbitration Award without registration under Section 17(1)(b) of the Registration Act, 1908. 2. Arbitrators' authority to direct payment by installments. Detailed Analysis: 1. Validity of the Arbitration Award without registration under Section 17(1)(b) of the Registration Act, 1908: The petitioner challenged the arbitration award on the grounds that it was not registered under Section 17(1)(b) of the Registration Act, 1908, which mandates compulsory registration for non-testamentary instruments creating, declaring, assigning, limiting, or extinguishing any right, title, or interest in immovable property valued at one hundred rupees and upwards. The petitioner argued that the award declared an interest in Flat No. G-3, Dadar Co-operative Housing Society, thereby necessitating registration. The court examined the nature of the right in the flat, noting that the land and building belong to the Dadar Co-operative Housing Society Ltd., a tenant co-partnership housing society under the Maharashtra Co-operative Societies Act, 1960. The deceased member's right was to occupy the flat by virtue of membership and holding shares in the society, not ownership of the property itself. The award dealt with transferring these shares, not declaring or creating rights in immovable property. Section 41 of the Maharashtra Co-operative Societies Act, 1960 exempts instruments relating to shares in a society from compulsory registration under Section 17(1)(b) of the Registration Act. The court referenced Ramesh Himmatlal Shah v. Harsukh Jadhavji Joshi, where the Supreme Court held that attachment and sale of a flat in a tenant co-partnership housing society only involve the right to occupy the flat and obtain a transfer of shares, not an interest in immovable property requiring registration. The court emphasized that Section 17 of the Registration Act should be strictly construed and that Section 41 of the Maharashtra Co-operative Societies Act clearly intended to exclude transfer of shares in a co-operative society from its ambit. The Gujarat High Court's Full Bench decision in Mulshankar Kunverji Cor and ors. v. Juvansinhji Shivubha Jadeja supported this view, holding that transfer of shares in a tenant co-partnership society does not require registration under Section 17(1)(b). The court distinguished the present case from Lachhmandas v. Ram Lal and anr., and Capt. (now Major) Ashok Kashyap v. Mrs. Sudha Vasisht and anr., noting that these cases did not involve rights to reside in flats belonging to co-operative housing societies. The court concluded that the award, dealing with transfer of shares in a tenant co-partnership society, did not require registration under Section 17(1)(b) of the Registration Act. 2. Arbitrators' authority to direct payment by installments: The petitioner contended that the arbitrators acted beyond their jurisdiction by directing payments in installments, arguing that the terms of reference did not empower them to award payments in this manner. The court dismissed this objection, stating that arbitrators have an implied power to prescribe the manner of payment when determining the rights and amounts payable by parties. Referencing Russel on Arbitration and the case of J. Kaikabad v. F. Khambatta and another, the court affirmed that arbitrators may direct payment by installments and that such directions are within their discretion and form essential parts of an award. The court emphasized that it is not within its purview to decide on the reasonableness of the award or the installment terms. Conclusion: The court dismissed the petition, holding that the arbitration award did not require registration under Section 17(1)(b) of the Registration Act and that the arbitrators were within their rights to direct payment by installments. No order as to costs was made in the circumstances of the case.
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