DEWAN AMOLAK SINGH Vs. LAJPAL

JUDGEMENT

(1.) THIS is an appeal under section 39 of the Arbitration Act against the order of Subordinate Judge 1st Class, Delhi, whereby he dismissed the objections of the appellant to the award, and with a very slight modification directed that the award be made a rule of the Court and a decree be awarded in terms of the award for recovery of the amount in question with future interest at the rate of 7 percent till the date of realisation.

(2.) THE brief facts of the case are that on 26th July 1962 the appellant executed a registered mortgage deed with regard to a house situated in East Patel Nagar, New Delhi, for Rs. 25.000.00 in favour Lajpal son of Lakhmi Dass respondent. It was mentioned in the deed that the mortgage money would carry interest at the rate of annas ten per cent per mensern. THE deed also contained a clause that if any dispute arose with regard to any matter covered by the mortgage deed, the same would be decided by Shri Sant Ram Ghai, Advocate, who would be the sole arbitrator and whose award would be binding upon the parties. On 19th November 1962 a notice was issued on behalf of the respondent to the appellant that only Rs. 256/25 np. had been paid towards interest that the balance of the amount due on the basis of the mortgage had not been paid. THE appellant was, accordingly, called upon to pay the amount within a week failing which legal proceedings would be taken against the appellant. A letter was thereafter addressed on behalf of the respondent to Shri Sant Ram Ghai to enter upon the reference. Shri Sant Ram Ghai after that sent registered notice dated 27th April 1963 to the appellant intimating that he had entered on the reference. THE appellant was called upon to attend at the residence of Shri Ghai on 19th May 1963 at 10 a.m. On 3rd June 1963 the appellant as well as Lakhmi Dass, father and attorney of the respondent, appeared before the arbitrator. Some proceedings took place before the arbitrator on 3rd June 1963, 16th June 1963 and 23rd June 1963. THEreafter orders were made by the Court extending the time for making the award. Some further hearing then took place before the arbitrator and on 26th December 1963 gave his award. According to it, Rs. 26,946/25np consisting of Rs. 25,000.00 on account of principal and Rs. 1,946/25 np on account of interest upto 26th Novamber 1963 at the agreed rate of annas ten percent per mensem were awarded in favour of the respondent against the appellant. It was also directed that the amount would carry interest at the rate of annas ten per cent per mensem till full payment. THE appellant was also directed to pay Rs. 150.00 on account of the arbitration proceedings. An application under section 14 of the Arbitration Act was thereafter made by the respondent for making the award rule of the Court and passing a decree in terms of the award. THE application was resisted by the appellant and objections were filed to the award. Objection was also raised that the application was not maintainable in the Court in Which it had been filed.