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Report No. 76

8.27. Judgment of Supreme Court.-

The conflict of decisions on the subject was noted by the Supreme Court also in one of its judgments.1 But the Court did not think it necessary to express a considered opinion on that disputed question. It merely observed, that the defendant in that case was not relying on the award as such, but on the fact that after the award the parties had by mutual agreement, settled the dispute and a division of property had been effected. However, the Supreme Court observed:

"It may be sufficient to observe that where an award made in arbitration out of court is accepted by the parties and it is acted upon voluntarily and a suit is thereafter sought to be filed by one of the parties ignoring the acts done in pursuance of the acceptance of the award, the defence that the suit is not maintainable is not founded on the plea that there is an award which bars the suit but that the parties have by mutual agreement settled the dispute, and that the agreement and the subsequent actings of the parties are binding."2

1. Kashinathsa v. Narsingasa, AIR 1961 SC 1077 (1083), para. 22.

2. See also Satish Kumar v. Surinder Kumar, AIR 1970 SC 833 (837), para. 8.



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