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TMI Blog2021 (11) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... lants to retain the jewellery - the Arbitrator had to decide the entitlement of all the seven parties to equal shares in the event of finding that the jewellery is not stridhana property - the conclusion of the High Court is approved by upholding the impugned judgment. Appeal dismissed. - Civil Appeal Nos. 6657-6658 of 2021 (Arising out of SLP (C) Nos. 30737-30738 of 2018 - - - Dated:- 9-11-2021 - L. NAGESWARA RAO And B. R. GAVAI, JJ. JUDGMENT L. NAGESWARA RAO, J. Leave granted. 1. The Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act ) by Respondent No.1 was dismissed by the District Judge, Vizianagaram and the interim award of the Arbitrator dated 26.05.2007 was upheld. The High Court partly allowed the Appeals filed by the Respondents under Section 37 of the Act, aggrieved by which the Appellants are before this Court. 2. Pusapati Vijayaram Gajapathi Raju succeeded to Vizianagaram estate on 25.10.1937. He was married to Kusum Madgoankar. They had three children namely, P. Ashok Gajapathi Raju, P. Anand Gajapathi Raju and Smt. Vasireddi Sunita Prasad. A public trust known as MANSAS was cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llot one such share to each of the parties to the appeal; (iii) The Arbitrator will also take into account 99 diamonds and one emerald ring given to the applicants in 1971 and claimed to be streedhana property of Smt. Madhuri V. Raju. The Arbitrator will decide whether the aforesaid items are the streedhana properties or not of Smt. Madhuri V. Raju; (iv) In case the Arbitrator comes to the conclusion that the said diamonds and emerald ring are not streedhana properties of Smt. Madhuri V. Raju, all the parties to the appeal are entitled to 1/7th share equally in the said diamonds and emerald ring; and (v) The Arbitrator will not take into account the findings recorded by the courts below. 6. Mr. Justice S. Ranganathan, retired Supreme Court Judge was appointed as the Sole Arbitrator by this Court on 28.03.2000 and the dispute with respect to the aforementioned terms of reference were referred for arbitration to him. 7. On 26.05.2007, the Arbitrator passed an interim award in the following terms : IX. CONCLUSIONS AND INTERIM AWARD 156. Having dealt with the various contentions raised by the parties, the Tribunal proceeds to set out its findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o desire, retain the earmarked portions in favour of the maintenance holders and divide only the balance among themselves in accordance with the plans. (5) The properties set out in Schedules 1 to IX will be divided in the manner set out in the discussions under the relevant schedules and keeping in mind the findings contained therein. In doing so, help may be taken from the plans appended to the award in respect of some of the items, without, however, treating them as conclusive. They may need modifications, if only for including the areas earmarked for maintenance holders in the land available for division if so opted for by the parties. (6) A very vital reservation is hereby made in regard to the assets described in Schedules IA and IB. In paras 148 to 154, it has been pointed out that the provisions of Urban Celling Act will override any partition arrangement in respect of lands covered thereby. Thus, while all the sharers may determine their right in respect of these lands among item inter se, the partitions directed hereby can only affect these pieces of lands that. remain with the various members of the family on the final outcome of the proceedings under the lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he last resort of selling all or any of them and dividing the proceeds. (9) The Tribunal has come to the conclusion (vide para 112 et seq) that this Award requires to be stamped in according with Article 12 of Schedule I-A to the Stamp Act (as applicable to Delhi). The detailed evaluation of the properties for purposes of Stamp Duty Is made In Annexure R to the Award to which are appended as Annexure S, T, U, V and W, the reports of the three valuers appointed for the purpose. The parties were apprised of the stamp duty payable and have submitted by pro- rata contribution, nonjudicial stamp papers of appropriate denomination on which this Award is inscribed. (10) Since this is a partition proceeding with all seven parties entitled to equal shares, the costs of these proceedings (including fee of arbitrators, fee of valuers, stamp duty payable) and any expenses that, may have to be incurred for registration of the award, the consequent mutation in public records and the like, shall be borne equally by all the seven parties. 157. Though the points of controversy between the parties have been decided by this award, it will be only in the nature of an interim award as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward of the Arbitrator to the extent that it held that the Respondent No.1 had relinquished her rights over the 99 diamonds and one emerald ring and that the Appellants were entitled to deal with the same in the manner in which they wish. It is relevant to note that the Respondents have not preferred any Appeal against this judgment of the High Court. The Appellants have challenged the findings of the High Court in respect of the 99 diamonds and one emerald ring. Therefore, in these Appeals, this Court is concerned only with the correctness of the interim award relating to terms of the reference (iii) and (iv) which pertains to 99 diamonds and one emerald ring. 11. The terms of reference relating to the 99 diamonds and one emerald ring are as under: (iii) The Arbitrator will also take into account 99 diamonds and one emerald ring given to the applicants in 1971 and claimed to be streedhana property of Smt. Madhuri V. Raju. The Arbitrator will decide whether the aforesaid items are the streedhana properties or not of Smt. Madhuri V. Raju; (iv) In case the Arbitrator comes to the conclusion that the said diamonds and emerald ring are not streedhana properties of Smt. Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent No.1 over the 99 diamonds and one emerald ring. According to the High Court, the Arbitrator could not have rejected the plea of Respondent No.1, especially after finding that the 99 diamonds and one emerald ring was stridhana property of the Respondent No. 1. The mandate of the Arbitrator was to decide whether the said jewellery is stridhana property and only in case the Arbitrator found that the said jewellery is not stridhana property, the Arbitrator shall decide the entitlement of the parties for the equal share. The High Court found fault with the interim award on the ground that the Arbitrator traversed beyond the terms of reference. If the said jewellery is held to be the stridhana property of Respondent No. 1, the question of deciding on the division of the property due to the change in the nature of the properties subsequently does not arise. The High Court further observed that the award passed in 1971 is not final and binding. If it was binding, the dispute relating to said jewellery being stridhana property would not have been referred to the Arbitrator. 14. We are in agreement with the judgment of the High Court that the Arbitrator had committed an error in de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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