Supreme Court: Execution of Arbitral Award in Family Inheritance Dispute Must Proceed

Here's a breakdown of the recent court decision involving a family disagreement over a decision made by an arbitrator. The Supreme Court has canceled the Bombay High Court's pause on carrying out the arbitrator's decision. Let's dive into the details.

Family Feud Over Inheritance

The case revolves around Bharat Kantilal Dalal, who passed away, and his nephew, Chetan Surendra Dalal. The family had a falling out over business and inheritance issues. Bharat sought an arbitrator’s help, and a decision was made in his favor back in July 2010. However, the family drama didn’t end there.

"The arbitral award dated 12.07.2010 was in favor of Bharat Kantilal Dalal."

Arbitral Award Across Borders

Bharat took steps to enforce the decision in Dubai and Singapore, where his father was declared someone who owes money. But things got tricky when the father claimed he lived in London. Chetan, who benefited from a Will, refused to disclose assets, arguing he wasn’t bound by the decision.

Court Orders in Bombay

Bharat filed to carry out the arbitrator's decision in the Bombay High Court. The Single Judge ordered the process to continue and issued notices to prevent others from claiming rights on the father's property. Chetan challenged this, claiming the decision was invalid.

"The learned Single Judge held that the arbitral award cannot be set aside."

High Court's Stay and Supreme Court's Intervention

The High Court Division Bench accepted appeals against the execution orders, pausing them. Bharat argued this was incorrect because the arbitration law restricts such appeals. The Supreme Court agreed, stating the High Court made a mistake by accepting the appeals without proper reasons.

Supreme Court's Directions

The Supreme Court has now directed the execution proceedings to continue, with notices to be issued to Chetan. He can raise objections, but the execution must proceed according to law.

"The appeals are dismissed as not maintainable."

Summary of the Verdict

The Supreme Court ruled that the arbitrator's decision should be carried out, despite the family disagreements and legal challenges. They determined that the High Court made a mistake by pausing the process without good reasons and ordered that the process continue as per the law.