RAMESH CHANDER SHARMA Vs. RAJINDER PERSHAD SHARMA

JUDGEMENT

(1.) (ORAL) 1. This regular second appeal is filed under Section 100 CPC impugning the judgments of the courts below; of the first appellate court dated 23.10.2013 and the trial court dated 7.1.2004; by which the suit of the appellant -plaintiff has been dismissed inasmuch as with respect to the disputes mentioned in the suit of the partnership firm of M/s Ashoka Industries (India), there were arbitration proceedings, an Award was passed, the said Award was made rule of the court under the Arbitration Act, 1940, and therefore, disputes with regard to the firm M/s Ashoka Industries (India) achieved finality. It may be mentioned that disputes were really as to all the assets which were left behind by the father namely Sh. Raghunath Pershad Sharma and which assets included disputes with respect to M/s Ashoka Industries (India).

(2.) THE trial court by its judgment dated 7.1.2004 dismissed the suit on the basis of Section 31(2) of the Arbitration Act, 1940 which provides that no suit can be filed to challenge the disputes which have been decided in arbitration proceedings, and the challenge to an Award can only be by means of filing objections to the Award. It may be noted that at the stage, when trial court decided the suit, the proceedings for making the Award rule of the court were pending, but the same stood decided by the time the first appellate court passed the judgment.

(3.) AS already stated above, during the pendency of the appeal, the proceedings for making the Award rule of the court achieved finality and therefore really issues which were the subject matter of the suit stood decided, achieved finality and thus the suit become barred by the principle of res judicata. The appellate court notes this aspect as also the disentitlement to file the suit disputes which were subject matter of the arbitration proceedings by making the following observation in para -6 of the impugned judgment dated 23.10.2013 which reads as under: -