Rajni Sanghi Vs. Western Indian State Motors Ltd. & Ors.
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Head Note
Indian Arbitration Act, 1940 - Section 17 , Section 30
Arbitration - Family Arrangement - Courts having jurisdiction were allowed to proceed and decide the properties available at Bombay and record a family arrangement in respect of other matters in a company proceeding before the Rajasthan High Court - Judgments and orders in these proceedings cannot be ignored or obliterated on account of pendency of an award still waiting to be made a rule of the court - In such a situation the award has to be set aside on the ground that it is otherwise invalid on the date it is being considered for being made a rule of the court - There is no hindrance in law in upholding the family arrangements made before the High Court at Rajasthan as well as judgment of the Bombay High Court which has attained finality - They deserve to have pre-eminence over the award in question.
Indian Arbitration Act, 1940 - Section 30
Term 'otherwise invalid - Principle of ejusdem generis - Clause (c) of Section 30 does not attract the principle of ejusdem generis so far as the term 'otherwise invalid' is concerned - That ground for setting aside award is quite wide in amplitude and available to the concerned court if it finds that the award requires to be treated as invalid because on face of the things it runs counter to a valid law prohibiting such an award or when the subject matter of the award has been lawfully dealt with by a statutory authority or a court and it is no longer available for disposal in accordance with the award under consideration.
Topic(s)-Arbitration - Family arrangement valid