MOHANLAL Vs. CHOUDHARY BUILDERS PVT LTD

JUDGEMENT

(1.) This revision petition under section 115 of the Civil Procedure Code has been filed challenging the order dated 19-2-2010 passed by the Court of XV Additional District Judge (Fast Track), Indore in Civil Execution Case No. 12-A/1996/2005 rejecting the petitioners' application under section 151 of the Civil Procedure Code.

(2.) The brief facts are that an agreement of sale was executed by the petitioners in favour of the respondent No. 1 for sale of the suit property. The agreement contained the Arbitration Clause that in case of dispute between the parties with the consent of both the parties Gulabchandra will be appointed as Arbitrator and his decision will be acceptable to both the parties.

(3.) The respondent No. 1 on 25-2-1994 filed application under section 20 of the Arbitration Act, 1940 (for short "Act of 1940") in the Court of District Judge, Indore for filing the agreement in the Court and referring the dispute to the Arbitrator. On 27-11-1998 the dispute was referred to the Sole Arbitrator Shri Gulabchandra Agrawal by the Court. The Arbitrator passed the award on 24-9-2004 and on the same day the award was submitted by the Arbitrator before the trial Court. Before the trial Court no objection was raised. The trial Court on 19-10-2004 held that under the Arbitration and Conciliation Act, 1996 (for short "Act of 1996") it is not necessary to make the award rule of the Court and the award can be executed directly. The respondent No. 1 on 24-12-2005 filed the execution application before the Court below which was registered as Execution Case No. 12-A/l 996/2005. During the pendency of the execution proceedings the petitioners filed application under section 151 of Civil Procedure Code dated 17-2-2010 raising an objection that in terms of section 17 of the Act of 1940 the award is required to be made rule of the Court and without it the award cannot be executed. They raised the plea that the provisions of the old Act of 1940 will apply.