Law: Arbitration Act, 1940

Section: 13,17,32,39

Law: Arbitration Act, 1940

Section: 13,17,32,39

Law: Specific Relief Act, 1877

Section: 12,42,54

Arbitration Act (X of 1940)-------Ss. 13, 17, 32 & 39---Specific Relief Act (I of 1877), Ss.12, 42 & 54---Suit for performance of arbitration agreement---Parties entered into an agreement through which the parties referred their disputes to panel of arbitrators to decide the same out of court---Terms of agreement showed that if any of the parties failed to comply with the decision of the arbitrators, said party only could be allowed to sue the other party after payment of Rs.5,00,000 (Rupees five lac) as a fine---Arbitrators inspected the place in question, heard both the parties, collected necessary information from the general public and thereafter through their or award directed the defendant to remove his four grinding machines within a week from the site pertaining to the plaintiff-Both parties accepted the decision of arbitrators by signing along with the arbitrators the decision in presence of the witnesses---Criminal case pending against the defendant, on account of said settlement arrived at between the parties, was also withdrawn---Defendant, after withdrawal of said case, not only failed to remove his four grinding machines, but also refused to accept the arbitration award---Plaintiff filed suit before Majli-e-Shoora for performance of. agreement arrived at between the parties---Said suit was decreed and defendant was permanently forbidden for interfering in the land in dispute and defendant was also directed to remove the four grinding machines from the decreetal site---Defendant filed appeal against of Majlis-e-Shoora, on two grounds; firstly that suit filed by the plaintiff was not maintainable against an arbitration agreement or award; secondly that as value of the suit for specific performance was Rs.60,000 but no court fee had been deposited by the plaintiff--Validity-Arbitration award passed out of the court on the basis of a valid authorized document though could not be executed or treated as 'award' or 'decision' like that passed by . court under Arbitration Act, 1940, but where the parties on account of an agreement declared to adopt a particular way to solve their dispute and in that respect they by their mutual consent, executed…

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