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Kunj Lal v. Banwari Lall And Others

Patna High Court
Dec 5, 1918
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Structured Summary of the Opinion (Dawson-Miller, C.J.)

Factual and Procedural Background

This appeal arises from an order of the Additional Subordinate Judge, Muzaffarpur, refusing the plaintiff's application to file an arbitration award under Schedule 2, Clause 20 of the Code of Civil Procedure. The parties comprise the plaintiff and defendants 1 and 2 (members of a Hindu joint family) and defendant 3 (the widow of a deceased coparcener). The family had separated in mess in 1908.

On 1 April 1911 the plaintiff and defendants 1 and 2 executed a registered deed submitting partition of family property and related disputes to two arbitrators, Babu Jnanendra Mohan Dutta and Babu Apurba Krishna Mitter. The submission provided that the award, order and partition by the arbitrators or umpire in all or any of the matters referred would be final and conclusive; no time-limit for making the award was prescribed. A prior submission of 27 January 1908 to three arbitrators had produced only a partial partition and was cancelled by mutual consent; the 1911 submission allowed the new arbitrators to adopt in whole or in part matters decided by the earlier arbitrators.

The arbitrators commenced in 1911, held numerous meetings and produced provisional decisions on portions of the estate; their minutes were kept. By July 1915 practically the whole estate had been partitioned provisionally. A draft award was circulated on 14 July 1915 for objections. On 12 July 1915 defendant 2 sent letters purporting to revoke the submission on account of delay; notwithstanding, the arbitrators proceeded, heard objections (defendant 2 participated), and published the final award on 8 October 1915. On 14 March 1916 the plaintiff applied to the Subordinate Judge to file the award; the defendants filed objections and the Subordinate Judge refused to order filing the award. This appeal follows from that refusal.

Legal Issues Presented

  1. Whether the reference to arbitration was valid in law given allegations that an arbitrator had exercised undue influence on defendant 1 to secure the submission.
  2. Whether a party (defendant 2) could validly revoke the submission because of the length of time taken to make the award.
  3. Whether the award left some matters referred to arbitration undetermined such that the award could not be filed under the applicable rules (Schedule 2, paras. 14, 15 and 21, Code of Civil Procedure).
  4. Whether alleged misconduct by the arbitrators (failure to insist on production of accounts, one arbitrator sitting alone at times, ex parte hearings, and dealing with matters beyond the scope) invalidated the award or justified refusal to file it.
  5. Whether the arbitrators exhibited bias in favour of the plaintiff sufficient to refuse to file the award.
  6. Whether the application to file the award was barred by limitation (Article 173, Schedule 1, Limitation Act).

Arguments of the Parties

Appellant's (Plaintiff's) Position

  • The plaintiff applied for the award to be filed under Schedule 2, Cl. 20, Code of Civil Procedure, seeking conversion of the award into a decree of the Court.
  • The plaintiff's position (as reflected in proceedings and the Court's consideration) was that the submission was valid, the arbitration had been substantially completed before the objection to delay was raised, and the final award was published on 8 October 1915 and should be filed.
  • The plaintiff relied on the minutes, prior provisional agreements, and the arbitrators' treatment of items and claims to show that matters were either determined or properly addressed by the arbitrators; the draft award was not to be treated as the final award for the purpose of limitation.

Defendants' Arguments

  • There was no valid reference because one arbitrator (Babu Jnanendra Mohan Dutta) exercised undue influence on defendant 1 to induce him to agree to the submission.
  • Defendant 2 was justified in revoking the submission due to long and unreasonable delay in making the award.
  • The arbitrators left certain matters referred to them undetermined.
  • Arbitrators were guilty of misconduct: (a) failing to insist on production of certain accounts in the plaintiff’s possession; (b) one arbitrator sat alone for an extended period (7 Nov 1914 to 11 Aug 1915); (c) ex parte hearings on three days; (d) dealing with matters outside the scope of the reference (including two suits described as Nos. 126 and 132 of 1911).
  • The arbitrators exhibited bias in favour of the plaintiff (examples included refusal to alter provisional allotments that proved profitable to the plaintiff).
  • The plaintiff’s application to file the award was barred by limitation; the Subordinate Judge treated the draft award as the operative date under the Limitation Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
O.R. Coley v. V.A. DaCosta Where there is unreasonable delay in proceeding with an arbitration (especially early and unexplained suspension), a party may revoke the submission; delays unjustified by any act of the complaining party can permit revocation. The Court accepted the principles in O.R. Coley but distinguished the present facts: in this case arbitration was practically completed and the main cause of delay was the voluntary absence of defendant 2. Accordingly, the authority to revoke on grounds of delay did not apply here and the Subordinate Judge's reliance on that case was misplaced.
Appovier v. Rama Subba Aiyan (Lord Westbury) Conversion of a joint tenancy of an undivided family into a tenancy-in-common constitutes a separation in interest and right; separate interests can exist even if not followed by immediate de facto division. The Court invoked this principle to hold that where the arbitrators divided certain villages into shares (thirds), such action constituted a permissible partition by shares (tenancy-in-common) within the contemplation of the submission and did not render the award incomplete.
Dutto Singh — In the matter of the petition of For the Limitation Act, the date of an award is the date it is delivered to the parties (publication / delivery giving notice), not the date when it was written or drafted. The Court relied on this principle to reject the Subordinate Judge's treating the draft award as the operative date for limitation. The final award was delivered on 8 October 1915 and the plaintiff's application was within six months of that publication.

Court's Reasoning and Analysis

The Court reviewed each ground on which the Subordinate Judge refused to file the award and addressed them sequentially:

  1. Undue influence / validity of reference:
    • The Subordinate Judge relied on a letter from one arbitrator (Jnanendra Mohan Dutta) to defendant 1 offering his services as arbitrator and concluded this constituted improper persuasion. The Appellate Court found no evidence of fraud or undue pressure in the record and considered the defendants to be educated persons capable of protecting their own interests. The appellate view was that, absent fraud or clear impropriety, any persuasion in favour of a course agreed to by all parties did not invalidate the submission. The Court held this ground could not sustain refusal to file the award.
  2. Revocation for delay:
    • The Court distinguished the present facts from those of O.R. Coley v. V.A. DaCosta. In Coley, suspension early in the arbitration without prospect of progress justified revocation. Here the arbitration had proceeded substantially to completion by July 1915 and defendant 2 had repeatedly participated (and had been absent for substantial periods by his own pilgrimage and residence elsewhere). On these facts a unilateral revocation late in the proceedings could not be permitted; the Court would not allow one party to revoke at pleasure when the delay was largely attributable to his own conduct. The Court therefore rejected delay as a ground for refusing to file the award.
  3. Matters left undetermined (Schedule 2 paras. 14, 15 and 21):
    • The Court explained the procedural framework: para.21 of Schedule 2 directs the Court to file an award where satisfied it was properly made and no grounds in paras.14 or 15 (which are for court-ordered references) are proved. The Court noted that the High Courts of Bombay, Allahabad and Calcutta have construed para.21 to deny the Court power to remit an award for reconsideration in arbitrations without court intervention — if matters in para.14 are proved, the Court must refuse to file the award.
    • The appellate Court carefully examined whether, under the submission and subsequent conduct, the arbitrators had acted within their authority in treating certain villages (Ulao villages and diara lands) as retained jointly but allocated by shares (thirds) rather than partitioned by metes and bounds. The arbitrators had express authority to adopt prior partitions and to divide property "in any manner as to them might seem fit and proper." The Court concluded that, given the special incidents of certain properties (proximity to family residence, valuation difficulties for diara lands), partition by shares converting joint tenancy into tenancy-in-common fell within the contemplation of the submission.
    • The minutes of the arbitrators' meetings showed parties had discussed and agreed a method (division into three lots and drawing lots) for dealing with some immoveable properties and that the arbitrators had in fact arranged and allotted lots. Later attempts by defendant 1 to insist on a different basis of partition (after earlier agreement and possession) were not accepted, and the Court held the arbitrators were justified in refusing that late demand.
    • As to Mauza Rahimpur and several moveables and monetary claims, the Court found either lack of proof that these were joint property or that the arbitrators had considered and disallowed claims for want of proof in the schedules of the award. The challengers had not shown that any joint property required by the submission remained unpartitioned.
    • On this ground the Court concluded the award could not be impeached for leaving undetermined matters as alleged by the Subordinate Judge.
  4. Misconduct and procedural objections:
    • Failure to insist on production of accounts: The arbitrators ordered production; the plaintiff did not produce; defendants did not pursue alternative remedies (apply to stay or dismiss or themselves procure certified copies). The Court held the arbitrators were not obliged to halt proceedings and there was no evidence the arbitrators were misled by non-production; the objection failed.
    • One arbitrator sitting alone and ex parte hearings: The Court noted that this course was taken with the full concurrence of all parties (minutes recorded such agreement) and that recorded objections were later considered jointly by both arbitrators. Accordingly, parties who previously consented could not later object to this procedure.
    • Dealing with certain suits (Nos. 126 and 132 of 1911): The Court found these claims concerned amounts due to or from the joint banking business and were therefore within the arbitrators' authority under Clauses 4 and 5 of the submission. Minutes indicated parties consented to these claims being dealt with in arbitration. The objection therefore failed.
  5. Alleged bias in favour of the plaintiff:
    • The learned Subordinate Judge pointed to instances where provisional allotments later proved profitable to the plaintiff and criticized the arbitrators for refusing to revise assessments. The appellate Court held the arbitrators reasonably declined to revisit provisional allotments where increased value resulted from the plaintiff's own acts (for example, purchase by plaintiff, or government acquisition producing higher payment). The Court emphasized it was inappropriate for a reviewing Judge to re-evaluate evidence and substitute his view for the arbitrators' conclusions absent misconduct or fraud.
    • With respect to a stipulation in Sch.8 of the award (interest stoppage where filing is delayed by a party), the Court found the provision legitimate: it prevents a party causing unreasonable delay by baseless objections from recovering interest for the period of such delay; it was not a penal clause to suppress proper legal objections.
  6. Limitation:
    • The Subordinate Judge had treated the date of the draft award as the operative date for limitation under Article 173, Schedule 1 of the Limitation Act. The appellate Court relied on the cited authority (Dutto Singh) to hold that the date of an award for limitation purposes is when it was delivered/published to the parties (when they had notice of its contents), not the earlier date on which a draft may have been prepared. The final award dated 8 October 1915 was the relevant date; the plaintiff's application was within six months. This ground failed.

Holding and Implications

Holding:

APPEAL ALLOWED — The judgment and decree of the Subordinate Judge are set aside; the award is to be filed and judgment entered in accordance with the award. Costs to the appellant here and below are awarded against the parties who appeared.

Implications:

  • Direct effect on the parties: The award published on 8 October 1915 will be filed in Court and converted into a judgment/decree as prayed by the appellant; the plaintiff succeeds in the application to file the award. Costs were awarded to the appellant in both Courts.
  • On broader legal consequences: The Court expressly adopted and applied existing authorities (including O.R. Coley v. V.A. DaCosta, Appovier v. Rama Subba Aiyan and the Dutto Singh principle regarding the date of an award for limitation). The Court noted a regrettable limitation in the procedural scheme (that para.21 does not permit the Court to remit awards for reconsideration in arbitrations without court intervention) but felt bound by earlier High Court constructions; it did not purport to change that construction. The opinion therefore applies established principles to the facts rather than announcing a novel legal doctrine.

Judge Mullick, J. concurred. The appeal was allowed.

Show all summary ...

Dawson-Miller, C.J:— This is an appeal from an order of the Additional Sub-ordinate Judge of Muzaffarpur refusing the appellant's application to file an arbitration award under Sch. 2, Cl. 20, Code of Civil Procedure. The plaintiff and the defendants' 1 and 2 are members of a Hindu joint family. The defendant 3 is the widow of a deceased coparcener of the family. In 1908 the members of the family had separated in mess. On 1st April 1911 by a registered deed the plaintiff and defendants 1 and 2 submitted the partition of the family property and settlement of certain matters in dispute between them in connection therewith to the arbitrament of Babu Jnanendra Mohan Dutta and Babu Apurba Krishna Mitter as arbitrators. The submission provided that the award order and partition and arbitration of the arbitrators or umpire in all or any of the matters so referred should be final and conclusive between the parties and their representatives. No limit of time was prescribed for making the award. By a previous agreement of 27th January, 1908 the same parties had submitted a partition of their joint property to three arbitrators, who had entered on the arbitration and made a partial partition of the property but owing to delay in completion of the award the parties agreed by mutual consent to cancel the submission, and by the present submission it was provided that the arbitrators might adopt partially or wholly the matters already settled or decided by the former arbitrators. The arbitrators duly entered on the arbitration in the year 1911 and adjourned from time to time. A great number of meetings were held and it was not until 8th October, 1915 that the final award was made. The value of the property was about Rs. 2,10,000 and no doubt there was a considerable amount of work to be done. It further appears that the defendant 2 lived during a considerable portion of that time at Patna and Hilsa, a long distance from Muzaffarpur where the meetings were held, and probably it was not always easy to convene meetings to suit the convenience of all paties. Further defendant 2 was absent for about a year of the time on pilgrimage. The defendant 3 Mt. Deoki Bibi joined in the arbitration by agreement in writing dated 1st May 1915, submitting her interest in the property to be determined by the same arbitrators in the same arbitration.

2. The procedure adopted by the arbitrators with the consent of all parties appears to have been to deal with separate portions of the property at different times as the arbitration proceeded and provisional decisions were arrived at from time to time distributing the different properties between the cosharers in proportion to their shares. Minutes of the proceedings were kept and the decisions were entered in the minute book. By July 1915 practically the whole estate had been in this way partitioned. On 14th July in that year a draft award was drawn up and submitted to the parties, who were invited to formulate objections thereto for final discussion. Up to this time there was nothing to show that any party was dissatisfied with the manner in which the arbitration was conducted or the length of time occupied, but on 12th July, 1915 on the eve of the publication of the draft award the defendant 2 wrote a letter to each of the arbitrators in similar terms, purporting to revoke and cancel the submission on the ground of delay in completing the a ward. The arbitrators apparently did not feel justified at this stage in desisting from their labours at the request of one party alone and they proceeded to hear objections by the parties to the drain award. The defendant 2 himself appeared and took part in objection proceedings, and on 8th October, 1915 the arbitrators having disposed of the objections published their award. Or, 14th March, 1916 the plaintiff application the Subordinate Judge to the drait award. The defendants filed objections. The Subordinate Judge rejected the plaintiff's application upon a number ??? grounds, which may be summarised as follows:

(1) That there was no valid reference to arbitration as undue influence was exercised by one of the arbitrators Babu Jnanendra Mohan Dutta, on defendant 1 to induce him to agree to the submission. (2) That the defendant was justified in revoking the submission owing to long and unreasonabl delay in making the award. (3) That the arbitrators left undertermined certain matters submitted to them. (4) That the arbitrators were guilty of misconduct in the following particulars (a) In failing to insist upon the production of certain accounts in the possession of the plaintiff dealing with matters in controversy in the arbitration. (b) In that one arbitrator as alone from 7th November, 1914 to 11th. August 1915 (c) In that on there days there were ex parte hearings, (d) In that certain matters outside the scop of the reference were dealt with by the arbitrators. (5). That the arbitrator exhibited a bias in favour of the plaintiff. (6). That the application was barred by limitation.

3. With regard to the first point it pears that Babu Jnanendra Mohanta had acted as pleader to the family and was more or less in their confidence. Both the defendants were educated men and presumably capable of looking after their own affairs. It would appear that there had been some discussion and possibly dissatisfaction about the dilatoriness of the arbitrators appointed by the earlier submission referred to and on the 18th March, 1911 Babu Jnanendra Mohan Dutta wrote a letter to the defendant 1 in these terms:— “I am sorry the arbitration matter is still pending without final decision. I don't think the arbitrators will finish the work soon. As we look to the interest of you all, we advise you to refer to a separate arbitration and I and Apurba Babu ire willing to act as arbitrators on moderate fees. Babu Harish Chandra and Babu Kunja Lal are agreeable to this. If you also consent to the matter please come and settle the affairs. May this find, you alright.” In the result the parties agreed to revoke the earlier submission and to appoint Babu Jnanendra Mohan Dutta and Babu Apurba Krishna Mittra in their place. The Subordinate Judge came to the conclusion that this was an improper letter to write, that Jnanendra Babu should have advised the parties to seek independent advice which was act done, and sums up the matter by saying that defendant 1 was persuaded by Jnanendra Babu to submit to the new arbitration and adds: “In my opinion defendant 1 was not free to act to the best dictates of his conscience. There was no valid reference in this case.” I confess I have some difficulty in following the reasoning by which the learned Judge arrives at the conclusion that there was no valid reference. I can see nothing improper in a letter such as that written by Babu Jnanendra Mohan Dutta to the defendant 1, offering himself as arbitrator sifter apparently discussing the matter with the plaintiff and the other defendant who were agreeable to the course suggested. I have also read the evidence of the defendant 1 and I am unable to discover the slightest indication of anything in the nature of fraud or even of undue pressure or persuasion upon the defendant to agree to the terms of the submission. Even had there been some persuasion exercised to induce the defendant 1 to consent to a course agreed to by the other parties, I cannot see unless some fraud or impropriety ??? is shown, that this would be any ??? for holding that the submission ??? not valid. In my opinion this part of the learned Judge's decision cannot stand.

4. The second point on which the Subordinate Judge's decision is based cannot, in my opinion, be supported. His decision on this point appears to me to be based upon a misunderstanding of the effect of the judgment in O.R Coley v. V.A DaCosta(1). Where parties submit their differences to arbitration, they cannot be allowed to revoke or withdraw from the submission except for very good cause. In the present case before any objection was taken to the delay by defendant 2, the arbitration was practically completed and although no final award had been made, this defendant had a very fair idea as to how he would stand at the end of it. One cannot shut one's eyes to the fact that he was not altogether satisfied with the properties allotted to his share. Some of them had not turned out as well as he expected. But up to the eleventh hour he had shown no inclination to be dissatisfied with the length of time occupied in the proceedings. Indeed it was mainly due to the fact that he himself had been on pilgrimage for a year and for part of the rest of the time lived at a distance from the other parties that the proceedings were protracted and, in my opinion, it would be contrary to the whole spirit of the law affecting submission to arbitration to permit one party to revoke his authority at his own pleasure without shewing some better reason than that which appears in the present case.

5. In O.R Coley v. V.A DaCosta shortly after the submission the arbitrator appointed by the respondent (one of the parties to the submission), before any material progress had been made in the arbitration, went to a hill station for the benefit of his health and all proceedings were suspended for about 7 months from the date of the submission and there was no prospect of anything further being done in the near future. The appellant (the other party) thereupon revoked the submission. In spite of this the Subordinate Judge shortly afterwards ordered the submission to be filed, and on the refusal of the appellant's arbitrator and the umpire to act, appointed another arbitrator and umpire in their planes without any notice to the appellant. The new arbitrators then met and subsequently delivered an award. The proceedings of the new arbitrators were heard ex parte in the absence of the appellant, although he was served with notice. The Court found that where there is unreasonable delay in proceeding with the arbitration, one of the parties may revoke the submission if the delay is not explained or justified by any act on his part. They also found that the proceedings of the new arbitrators were tainted with illegality for other reasons not material to the present discussion. I agree with the principles laid down in that case, but the circumstances of the present case are entirely dissimilar. The only reason which appears for any delay in completing the proceedings in the present case is that mentioned by the arbitrators themselves in their award, namely, the voluntary absence of the party who now seeks to impugn the award on the ground of delay. In my opinion, no case has been made out which would justify the Court in refusing to file the award on the ground of delay.

6. The third point is the one which presents most difficulty in this appeal. By the terms of the submission the arbitrators had the option of adopting partially or wholly the matters already settled and decided by the former arbitration. It was also proved that the arbitrators should divide and portion in any manner as to them might seem fit and proper all such property, moveable and immoveable, as was still jointly owned by the parties. They were also to settle and decide all accounts between the parties and to adjust or otherwise settle and decide all credits and debts due and owed by the joint banking business of the parties, and for the purposes of such division make any allotment of such credits and debts between the parties as to them seem just and proper. There were a large number of villages jointly owned by this family. Most of these villages had been partitioned in the former proceedings, including certain zamindaries at Ulao. The allotment of those villages previously arrived at was adopted by the arbitrators. There were however three or four villages of Ulao Elaka which had not been previously partitioned and these were advisedly kept joint by the arbitrators as they were adjacent to the family residence of the Parties and the award provided that each of the names should take a third share in each of these villages. There were also ??? lands ??? two villages, which were advisedly kent joint as the could not be valued with ??? The learned judge came to the conclusion that the award was bad by reason of this defect and could not therefore be filed. The rules contained in Sch. 2, Code of Civil Procedure., relating to arbitration without the intervention of the Court provide (para. 21) that where the Court is satisfied that the matter has been referred to ??? and that an award has been made thereon and where no ground such as is mentioned or referred to in para. 14 or para. 15 is proved the Court shall order the award to be filed and shall proceed to pronounce judgment according to the award. Paras 14 and 15 form part of the procedure applicable to references ordered by the Court. Para 14 authorises the Court to remit the award to reconsideration of the arbitrators where (inter alia) the award has left undetermined any of the matters referred to arbitration of where it determines any matter not referred to arbitration, unless such matter can be separated without affecting the determination of the matter referred. Para 15 relates to the grounds upon which alone an aware can be set aside. These include corruption or misconduct of the arbitrator or umpire, fraudulent concealment of material matters by the parties or the wilfully misleading or deceiving the arbitrator or umpire.

7. Whilst it is clear that in cases where the reference is made by the order of the Court the Court may remit the award for the determination of matters left undecided under para. 14 of the Schedule, it has been held by the Courts of this country that para 21 of the Schedule confers no such power in the case of arbitration without the intervention of the Court and that if any of the matters referred to in para 14 are proved, the Court has no option but to refuse to file the award. It is in my opinion regreatable that such power does not exist and the absence of any such power under the rules must, in many cases, work great hardship and inconvenience upon the parties. It may we, be that after great labour and ex-pense have been incurred by the parties in settling their differences by arbitration, one of them in whose favour the matters referred have been derived may find himself unable to file the award and obtain the judgment of the Court thereon if some small portion of the matters referred to arbitration has been left undetermined. It is, however, in my opinion, too late now to Question the construction which has been placed upon para 91 by the High Courts of Bombay Allahabad and Calcutta and if ??? should appear that the arbitrators ??? out the consent of the parties have ??? to partition the Mauzas in question, when they were required to do so by the submission, there will be no option but to refuse to the award. It becomes necessary, therefore, to consider how for, if at all, the parties have either, by the submission or by subsequent consent agreed to the course followed by the arbitrators. It is true that the submission by clause 2 gives the arbitrators the option to adopt partially or wholly the matters already settled or decided by the former arbitrators. The former arbitrators partitioned practically the whole of the villages leaving those in question joint, and it is contended that paras. 2 of the submission I entitled the arbitrators to adopt in its entirety the decision arrived at by the former arbitrators and to retain these villages and the diary lands as joint property. I am afraid I cannot accept this argument. In so far as the previous arbitrators left undivided any of the joint property, I think it was the 1 intention of the submission that the present arbitrators should deal with it.

8. It is next contended that Cl. 17 of the submission, which provides that the award 1 order, partition and arbitration of the arbitrators or umpire in all or any of the matters referred to them shall be final and conclusive, contemplates that any of the matters referred to the arbitrators and dealt with by them shall be binding upon the parties notwithstanding that other matters are left undecided. Had this clause stood alone there would have been much force in this argument but after consideration I of the document as a whole and especially Cls. 3, 4 and 5 I have come to the conclusion that it was the intention that all the joint property of the parties should be partitioned in one way or another, in so far as it was capable of partition and even if the arbitrators with the best intentions in the world died to carry out the terms of the submission in any material particular, it seems to me that we have no power of file the award which would on this hypothesis be incomplete. So far as the Ulao villages are concerned, they were in fact partitioned between the parties in equal shares. Their interest therefore ceases to be that of joint tenants such as the interest enjoyed by coparcener and becomes that of tenants-in-common, giving, each of the parties a separate interest and separate rights in the subject matter. The submission ??? that the whole of the ??? properties shall be partial ??? by metes and bounds, although speaking generally I think it must be assumed that it was the intention of the parties that this method should be adopted and had the whole of the immoveable property been divided by shares instead of by metes and bounds, I think it would have been correct to say that the arbitrators had failed to carry out the duties imposed upon them.

9. Where however there are special incidents attaching to a small portion of the property, such as the lour villages of Ulao Eiaka by reason of their propinquity to the family residence of the parties which make it more convenient for all of them that this property should be divided into shares only, 1 think it may safely be assumed that such a node of division in this particular instance was not outside the contemplation of the parties. In the well-known judgment delivered by Lord Westbury in the case of Appovier v. Rama Subba Aiyan(2) it is pointed out that “if there be a conversion of the joint tenancy of an undivided family into a tenancy-in-common of the members of that undivided family, the undivided family becomes a divided family with reference to the property that is the subject of that agreement and that is a separation in interest and in right although not immediately followed by a de facto actual division of the subject matter.” In my opinion there was within the terms contemplated by the submission a partition of this property having regard to its peculiar character. The same reasoning applies, in my opinion, with equal force to the diara villages which, as I read the award, were also partitioned in the same manner, namely, into thirds, and which could not be valued with that precision necessary to enable the arbitrators to divide them by metes and bounds.

10. It appears moreover from a perusal of the minutes of the meetings of the arbitrators that there was some discussion between the parties as to the manner in which this property not hitherto partitioned should be dealt with. At the 14th meeting held on 7th January, 1912 the matter was referred to and it was agreed to consider at a subsequent meeting whether any partition would take place or not. At a later meeting held in 1912 the following minute is recorded: “The parties agree that excluding certain properties which they agree to keep joint, we shall divide the properties in three lots and then put the lots up to bids and then make the allotments.” The property therein referred to was clearly immoveable property as no personal property was kept joint, and at a later date at a meeting held on 30th April, 1913 after the arbitrators had been to Ulao to inspect the residential house of the parties, it is recorded that the immoveable properties were arranged in three lots of nearly equal value and drawn by lot between the parties. It is clear I think that the word “bids” in the previous entry refers to something in the nature of drawing lots. Now it is not suggested that there was any other property except that of the diara villages and Ulao which the parties agreed to keep joint, and I think it must be taken until the contrary be shown that the agreement to keep joint in the sense of not dividing by metes and bounds can only refer to the diara mahals and the Ulao villages which the arbitrators in their award say were advisedly kept joint. It is true that at a subsequent date when objections to the draft award were put forward at the invitation of the arbitrators in October 1915, defendant 1 claimed that the four Ulao villages should be divided and that he should get one of them which he named. I do not think, however that at that stage of the proceedings when he had agreed to the previous partition two years earlier and the parties had been put in possession, he was entitled to insist upon a different basis of partition, and in my opinion the arbitrators were justified in refusing to accede to this demand. The reasons given by him for claiming the division of the Ulao villages by metes and bounds are that the villages which had been already allotted to him were some distance away in the Bhagalpur and Dumka districts and that labourers and other necessaries could not be obtained in those Mauzas whilst in the village which he claimed they could. I hold that the award cannot be impeached on this ground.

11. Under the same heading it was also contended that the arbitrators failed to partition Mauza Rahimpur. The defendants claimed this as joint property. The evidence about it is very scanty but so far as it goes, it appears that this village was purchased by the plaintiff in the farzi name of Gobind Sahai in the rear 1909 after the parties had separated in mess and were carrying on a separate business. There was no evidence to show that it was joint property. The award does not specifically mention it but in Sch. 10 which deals with claims and objections of the respective parties, the arbitrators after dealing with a number of claims and objections state in para. 17 “claims made by the one party or the other similar to those mentioned in the foregoing paragraphs of this award are all disallowed.” The paragraphs in question, deal with many things the partition of which was claimed as being joint property. In some cases it was found that they did not exist and in others that the claim failed for want of proof. I think therefore it must be taken that the arbitrators intended to disallow this claim. In any case it is for those contesting the validity of the award to show that the property in question was joint property which the arbitrators omitted to, partition in compliance with Cl. 3 of the submission. They have failed to do so.

12. It was next contended that certain moveables were not divided. These consisted of a sewing machine, some iron, safes and a diamond ring. It is sufficient to say that the arbitrators dealt with this claim in Sch. 10, para. 12, and dismissed it for want of proof. In the same way it was contended that debts due by the banking business had not been apportioned. There is no evidence that any such debts existed but if they did, they would be covered by Cl. 11 of the award and each party would be liable for one-third share. Moreover debts due from the join family could be realised by creditors, from any member of the family and all division of particular debts between the members could not for any practical purpose be made otherwise than by shares. The assets might be and were allotted, but the debts could not be assigned so as to bind the creditors Cl. 5 of the submission gave the arbitrators a wide power as to the method of adjusting the debts of the banking business if any, and the method adopted seems to me to have been the most practical and in accordance with the terms of the submission. The next point was that a balance of Rs. 1,298 out of a sum of Rs. 5,015 said to have been paid to Gobind Sahai, one of the former arbitrators, was left unaccounted for. The arbitrators dealt with this in Sch. 10, Cl. 5, and disallowed the claim for want of proof. I do not see how we can question this finding. Such evidence as there was in support of the contention that any such balance existed was certainly inconclusive.

13. The fourth objection, heading (a), refers to certain documents relating ??? some of the lahnas awarded to ??? plaintiff and which the ??? ordered the plaintiff to produce. The lahnas in question appear as items 2 and 7, Sch. 1-A of the award 2 was a mortgage decree obtained by the family against one Mukhram Singh. No. 7 was some shares in the Tirhut Stores. The decree appears to have been for a sum of Rs. 400 and was assessed by the arbitrators after bidding by the parties at that amount. There is nothing to show that it was worth more. The Tirhut Stores shares were assessed in the same way and valued at Rs. 200. On 11th August, 1915 defendant 1 applied by letter to the arbitrators to order the plaintiff to produce the decree and account of Mukhram Singh's decree and an acount of dividends received from the Tirhut Stores. The letter was sent on to the plaintiff, who endorsed it: “It is not stated which bahi is required.” On the 14th August a discussion took place before the arbitrators, who ordered the plaintiff to produce the accounts asked for. The order was not complied with. Defendant 1 called attention to this again in his written objections to the draft award on the 2nd October. Defendant 2 does not appear to have mentioned it. In Sch. A of the award giving the list of lahnas allotted to the plaintiff, a note appears to the effect that no evidence was adduced by the parties about the amount of Mukhram Singh's debt and the dividend of Tirhut Stores. Where a party fails to comply with an order for discovery, the proper remedy is for the party seeking discovery to apply to have the proceedings stayed or the suit dismissed. The decree against Mukhram or a certified copy could also have been produced by the defendants themselves without any difficulty, if it would assist them and if any dividend was paid by the Tirhut Stores which carried on business in Muzaffarpur, the defendants could easily have obtained evidence of the fact. None of these courses were adopted and I am not prepared to hold that the arbitrators were bound of their own initiative to refuse to proceed until the order had been complied with, still less to hold that the course adopted amounted to misconduct. The defendants, both before the arbitrators and again in present proceedings, have had every opportunity of proving that the accounts not produced would have shown that the assessment of the two items named was under-estimated, if such were the fact, and that the arbitrators were misled, but they have not availed themselves of the opportunity and there is nothing to show that any injustice has been done. This objection in my opinion fails.

14. As to objections 4(b) and (c), it is true that one arbitrator sat alone for the period named to hear and record objections by the parties and on three days there were ex parte hearings in which each party in turn explained his objections. This procedure, which would have been objectionable in ordinary circumstances, was adopted with the full concurrence of all the parties and they cannot now be allowed to take exception to a course in which for the sake of convenience they previously concurred. The minute of the 24th meeting on the 16th September, 1914 records: “It is agreed by all the parties that J.M Dutta would receive the objections of the parties and their evidence if any, the decision to be come, to by both arbitrators jointly.” The procedure thus agreed to was carried out. One of the arbitrators sat to hear and record the objections on a number of days and subsequently on the 19th September and the 1st and 2nd October, 1915 each of the parties appeared before the arbitrator in turn and explained his objections. It appears from the evidence that no decisions were come to by the arbitrator on these occasions. He merely recorded the objections. The objections as recorded were considered and decided subsequently by the two arbitrators sitting together. In the circumstances no exception can be taken to this course.

15. The objection 4(d) refers to two suits referred to as Nos. 126 and 132 of 1911. In the first the claim was by the mother of defendant 2 claiming money deposited in the defendants' banking business. In the second the plaintiff was the present plaintiff's son claiming a like deposit. The learned Judge says these matters were beyond the reference and the action of the arbitrators was ultra vires, but gives no reasons for arriving at this conclusion. It seems to me that under Cl. 5 of the submission it was within the powers of the arbitrators to settle all debts due by the joint banking business, which these claims were. It is said that the real claimants were the defendant 2 in the one case and the plaintiff in the other. If this is so, the arbitrators would have power to deal with it under para 4 of the submission which enables them to settle all accounts between the parties. Moreover from a perusal of the minutes of the 8th, 9th and 10th meetings it is impossible to arrive at any other conclusion than that all parties consented to these claims being dealt with in the arbitration. This objection cannot be supported.

16. As regards the fifth objection, the learned judge draws attention to some instances in which the arbitrators refused by their final award to alter the provisional allotment by which certain properties were apportioned to the plaintiff's share, although in the meantime these properties turned out better than anticipated. In one case a mortgage decree allotted to the plaintiff at the decretal amount was realised by him by sale of the property which he purchased. The property proved worth more than the decretal amount. The arbitrators refused to revise the assessment of the decree and, in my opinion, quite rightly. The increment was due to the fact that the plaintiff purchased the mortgaged property, which it was open to anyone to purchase. His speculation turned out profitable. In another case a garden house was allotted to the plaintiff and he was put in possession. Before the final award it was purchased by Government under the Land Acquisition Act for a larger sum. The properties of this nature had been allotted by the former arbitrators and the parties had been in separate possession for a long time. The arbitrators had adopted the previous allotment and retained the parties in possession long before the final award and refused to interfere with the assessment: see Cl. 3 of the award. The learned Judge said, this showed undue bias in favour of the plaintiff. Many similar instances were discussed by the parties before the arbitrators in objection to the draft award and before the final award. The arbitrators in some instances, for reasons given modified the provisional assessment in favour of one party or the other. In other cases they refused to do so.

17. The learned Judge appears to have reviewed the evidence and pointed out some instances in which the award turned out profitable to the plaintiff and criticisms the decision come to by the arbitrators. His criticisms would have been appropriate in argument before the arbitrators before the award was made, but with due respect to the learned Judge I think he was travelling outside his province in reviewing the evidence and accusing the arbitrators of bias because ??? himself would have arrived at a different decision on the evidence. We were invited to adopt the same course but must respect fully decline to do so. The next point dealt with by the learned Judge appears to me to be based on a misapprehension of Sch. 8 of the award. This schedule adjusts the monetary liability between the parties and makes the amounts payable in two lasts of three months each with interest at 6 per cent, and adds that if the conversion of the award to a decree of Court is delayed by any party entitled to get the sale interest will not run on the amounts awarded. The learned Judge treats this as a penal clause designed to stifle fair and legal objections to the award on pain of forfeiting interest. In my opinion this was not meant to penalize proper legal objections to the award. If a and objection to the award were taken by any party and upheld, then the award could not be filed and the stipulation as to interest would avail nobody. If a baseless objection be taken and delay be caused in filing the award, I can see nothing objectionable in depriving the unsuccessful party of interest for the period of delay in filing the award caused by his own unsuccessful objection.

18. The last point dealt with the question of limitation. The learned Judge treated the date of the draft award as the date of the award within the meaning of Article 173, Sch. 1 of the Limitation Act. With great respect to the learned. Judge his decision is based upon a misapprehension of the judgment in Dutto Singh, In the matter of the petition of(3). That case decides that the date of the award referred to in the Limitation Act was the date when it was delivered to the parties so that they had notice of its contents, and not the date when it was actually written and signed which in many cases might be much earlier. In other words the date was the date of publication, which is not complete until delivery to the parties. The draft award was not the award at all and its publication was not the publication of the award. The final award differed in many respects from the draft, which from its very nature and purpose for which it was made could not be regarded as the award. The present application was clearly within six months of the date of the award, and this objection also fails. In the result the appeal will be allowed and the judgment and decree of the Subordinate Judge will be set aside; the award will be filed and judgment entered in accordance therewith. The appellant will be allowed costs here and in the Court below against the parties who appeared.

19. Mullick, J.:— I agree.

V.S/R.K

20. Appeal allowed.