Arbitration award registration for property attachment
Divya
(Querist) 12 November 2012
This query is : Resolved
Dear Sir/mam
An unregistered arbitration award is procured from a sole arbitrator exparte with fraud….Bank comes to District Court to attach immovable property using award as reference….Award Copy only mentioned dues on credit card...There was no mention of immovable property in award.
Section 17 (1b) of Registration Act., 1908 states that any award which purports to create a charge etc. on immovable property requires compulsory registration.
Admission of the award in evidence offends against the provision of Section 49 of the Indian Registration Act which precludes the admission of a document which is compulsorily registrable under Section 17 of the Act…
Section 49 of the Registration Act deals with the effect of non-registration of documents required to be registered. It provides : 'No document required by Section 17 or by any provision of the Transfer of Property Act, 1882, to be registered shall -
(a) affect any immovable property comprised therein, or (b) ...(c) be received as evidence of any transaction affecting such property....unless it has been registered.
So stating the above sections, can bank attach property using a non-registered award…A recent SC ruling has held that award becomes null if its unregistered i.e. if it purports creating any right etc on any immovable property.
Thankyou
Devajyoti Barman
(Expert) 12 November 2012
Cite the decision of the supreme court first to help us comment on your query.
The award can be executed through civil imprisonment as well.
Divya
(Querist) 12 November 2012
SC JUDGMENT:
Ramesh Kumar & Anr. vs Furu Ram & Anr. Etc. on 18 August, 2011
Devajyoti Barman
(Expert) 13 November 2012
Well it was in respect of old act.
Under new Act the award need not be registered.
Raj Kumar Makkad
(Expert) 14 November 2012
In the given matter, the action of the bank is not erroneous and the same is within its rights.
