NAWAB USMANALI KHAN Vs. SAGARMAL

JUDGEMENT

(1.) The appellant is the Ruler of the former Indian State of Jaora. He had money dealings with the respondent. By an agreement dated February 23, 1957, the appellant and the respondent agreed to refer their disputes regarding those dealings to the arbitration of Lala Durgashankar. On the Same date, the arbitrator trade an award. By this award the arbitrator found that a sum of Rs. 1.60,000 was due to the respondent from the appellant, and directed that this sum would be payable in eight quarterly instalments, the first four instalments to be of Rs. 21,000 each and the next four instalments to be of Rs. 19,000 each, the amount of interest would be payable in another quarterly instalment, the respondent would have a first charge on the sums receivable by the appellant from the Government of India as privy purse, and would be entitled to realise those sums under a letter of authority issued by the appellant and if the Government would raise any objection to the payment the respondent would have the right to realise the dues from the personal property of the appellant Some of the items of the loans in respect of which the award was made were secured on lands and ornaments. The award therefore provided:

(2.) On the same day, the arbitrator filed the award in the Court of the District Judge, Ratlam. Notice of the filing of the award under S. 14 of the Indian Arbitration Act, 1940 was duly served on the parties. On March 9, 1957, an agent of the appellant filed a written submission accepting the award and requesting the Court to pass a decree in terms of the award. But the same day, an application was made by another agent of appellant intimating that steps would be taken for setting aside award. The Court fixed March 23, 1957 for filing the objection. The time was subsequently extended up to April 2, 1957. On that day, an application was filed on behalf of the appellant praying for setting aside the award. But on April 5, 1957, an application was filed on behalf of the appellant withdrawing the objections and asking the Court to pass a decree in terms of the award, subject to the modification that the amount of the award would be payable in quarterly instalments of Rs. 13,000 each. This application was signed by the respondent in taken of his consent to the modification of the amount of the instalments. On April 30, 1957, the arbitrator filed the relevant papers. On the same day, an agent of the appellant filed an application praying for setting aside the compromise and the award. The case was fixed for hearing in June 19, 1957. On that date, the Court received by registered post an application from the appellant withdrawing the objections and praying for in order in accordance with the compromise application filed on April 5, 1957. In the circumstances, on June 19, 1957, the Court recorded the compromise and passed a decree in terms of the award as modified by the compromise. The appellant filed in the Madhya Pradesh High Court Appeal No. 81 of 1957 under S. 39 of the Indian Arbitration Act, 1940 against the Order dated June 19, 1957 treating it as an Order refusing to set aside the award. The appellant also filed Appeal No. 82 of 1957 under Order 43(1) (m) of the Code of Civil Procedure against the Order dated June 19, 1957 recording the compromise.

(3.) In the meantime, the respondent stated Execution Case No. 5 of 1957 and on September 9, 1957 obtained an ex parte Order for transfer of the decree to the Court of the District Judge, Delhi. On November 1, 1957, the Central Government gave a certificate under S. 86 (3) read with S. 87-B of the Code of Civil Procedure, 1908 consenting to the execution of the decree against the properties of the appellant. On November 8, 1957, the District Judge, Delhi passed a prohibitory Order under O. 21, R. 46 of the Code of Civil Procedure in respect of sums payable to the appellant on account of the Privy purse. By letter dated December 26, 1957, the Central Government informed the appellant of the prohibitory Order. On January 8, 1958, the appellant applied to the Court of the District Judge, Ratlam praying for vacating the Order of transfer of the decree and for cancellation of the certificates issued under O.21, R. 6 (b) of the Code of Civil Procedure. By Order dated March 15, 1958 the Court recalled the decree and cancelled the certificate as prayed for on the ground that the amount receivable by the appellant on account of his privy purse was not attachable. The respondent preferred Appeal No. 33 of 1958, before the High Court against this Order. By another Order dated January 7, 1959, the District Judge, Ratlam dismissed certain objections of the appellant filed in Execution Case No.2 of 1958. We are informed that the appellant filed before the High Court Appeal No. 13 of 1959 from this Order.