Andhra Pradesh High Court
Judges : N.V.RAMANA
Surender Singh Bajaj s/o late Sardar prem Singh, c/o Ferro Insulations (P) ltd., Secunderabad - Appellant
Versus
Harmeet Singh Sethi w/o Harjinder singh Sethi, Hyderabad - Respondent
Decided On : 10-27-03
Indian Penal Code, 1860 – Section 379, 420, 467, 468 and 471 – Arbitration and conciliation Act, 1996 – Indian Contract Act, 1872 – Sections 23 and 24 – Indian Stamp Act, 1881 – Indian Registration Act – Benami Transactions (Prohibition) act, 1988 – Section 4 and 3 – Standards of Weights and Measures (Enforcement) act, 1985 – Commodities Act, 1955 – Section 3 – Petroleum Act – Explosives Act – Measurements Act, 1976 – Alleged agreement – Fabricating – Inadmissible Evidence – Arbitration application – Essential – Applicant claims – Void and Invalid – Applicant claims to have purchased an extent of land comprised respectively of medchal Taluk, Attavalli village, Ranga reddy District benami in respondent and 2, under registered sale deeds – Respondent Nos. 1 and 2 are closely related to applicant respondent being his sister and respondent No. 1 being daughter-in-law of respondent – Order to safeguard interest of applicant an agreement acknowledging real ownership of property was executed by parties on according to applicant reveals real ownership of applicant and intention of parties entire sale transaction – Held, Arbitration and Conciliation clothes Arbitrator with power to go into question of validity or otherwise of arbitration agreement or the arbitration clause contained in the agreement contention of respondents that alleged agreement being void and invalid arbitration clause contained therein cannot be looked into for invoking the arbitration clause cannot be accepted, and decisions relied upon by learned counsel for the respondents in support of his arguments do not help him in any manner disputes raised by parties being contentious in nature it is not open for this Court in exercise of its jurisdiction under Section 11 of arbitration and Conciliation Act, 1996, to render its opinion upon such contentions issues for role of Chief Justice or his designate is limited to appointing an arbitrator, once he is satisfied that statutory period has expired – Arbitration Application is allowed.
( 2 ) THE applicant claims to have purchased an extent of Ac. 2. 02 guntas and ac. 2. 24 guntas of land, comprised in sy. Nos. 396 and 399 respectively of medchal Taluk, Attavalli village, Ranga reddy District, benami in the names of respondent Nos. 1 and 2, under registered sale deeds. Respondent Nos. 1 and 2 are closely related to the applicant, respondent no. 2 being his sister and respondent No. 1 being the daughter-in-law of respondent no. 2. In order to safeguard the interest of the applicant, an agreement acknowledging the real ownership of the property was executed by the parties on 6-2-1990 which according to the applicant reveals the real ownership of the applicant and the intention of the parties about the entire sale transaction. The said agreement contains an arbitration clause in clause 8, which lays down the course of action to be taken by the parties in case any disputes arise amongst them, and names one Sardar Bhupender Singh to be appointed as Arbitrator, who unfortunately died on 25-4-1999.
( 3 ) THE applicant submits that the respondents with a dishonest intention to grab the properties purchased by the applicant in their names benami filed a complaint against the applicant on the file of the V Metropolitan Magistrate, Nampally, stating that their signatures were taken on blank papers to make wrongful loss to them. On the complaint being referred to Banjara hills Police Station, the police registered the same as FIR No. 556/2001, dt. 21-10-2001 under Section 379, 420, 467, 468 and 471 i. P. C. The applicant states that when he made an application to the Economic offences Court, Nampally, for withdrawal of the surety given by him to Mr. H. S. Sethi, who is none other than the son of respondent No. 2 and husband of respondent no. 1, Mr. H. S. Sethi filed two suits against the applicant for recovery of certain monies, and on such suit being O. S. No. 21 of 2002 on the file of the III Additional Chief Judge, City civil Court. Hyderabad, was withdrawn by mr. H. S. Sethi on 10-4-2002 on the applicant filing his written statement. The applicant submits that Mr. H. S. Sethi is holding a number of non-judicial stamp papers bearing the signatures of the applicant and misusing the same. The applicant submits that earlier he filed application A. A. No. 57 of 2002 for appointment of Arbitrator, which he withdrew on 19-2-2003 reserving himself liberty to file fresh application in terms of Section 11 of the arbitration and Conciliation Act, 1996. Thereafter, the applicant invoking the arbitration clause in Clause 8 of the agreement dated 6-2-1990, got issued legal notice dated 20-2-2002 to the respondents, calling upon them to appoint an Arbitrator for resolution of the disputes between the parties, and when there was no response from the respondents in spite of receipt of the said legal notice, the applicant moved the present Arbitration Application seeking appointment of an Arbitrator.
( 4 ) ON behalf of the respondents, respondent No. 1 filed counter-affidavit stating that the alleged agreement dated 6-2-1990 entered into between the parties is a void agreement, and having regard to the provisions of Section 4 of the Benami transactions (Prohibition) Act, 1988 and the provisions of Sections 23 and 24 of the indian Contract Act, 1872 the present application for appointment of an Arbitrator, is not maintainable. Even assuming without admitting that the alleged agreement is not hit by any of the afore-mentioned provisions, yet the alleged agreement is invalid and cannot be looked into for the same is insufficiently stamped and is hit by the provisions of the Indian Stamp Act, 1881 and the Indian Registration Act. As the applicant is claiming a right in respe
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