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1996 Supreme(AP) 421

Andhra Pradesh High Court
Judges : G.BIKSHAPATHY, V.BHASKARA RAO
Defence EStates Officer - Appellant
Versus
V.Suresh Babu - Respondent
Decided On : 06-06-96

Once an award of an arbitrator is confirmed by the High Court under Section 11 of the Requisition and Acquisition of Immovable Property Act, 1952, the Government is estopped from challenging the award again through a writ petition.

Headnote:

ARBITRATION - REQUISITION AND ACQUISITION OF IMMOVABLE PROPERTY ACT, 1952 - SECTION 11 - AWARD OF ARBITRATOR - CHALLENGE - WRIT PETITION - MAINTAINABILITY - ESTOPPEL - PARALLEL PROCEEDINGS - PRINCIPLE OF MERGER OF ORDERS.

Fact of the Case:

The petitioners, owners of land requisitioned by the Government for the establishment of Defence Research Laboratories, challenged the award of the arbitrator fixing the rent, solatium, and interest. The Government filed an appeal under Section 11 of the Requisition and Acquisition of Immovable Property Act, 1952, which was dismissed by the High Court. The petitioners then filed a writ petition for the implementation of the award.

Finding of the Court:

The High Court held that the writ petition was maintainable and directed the authorities to pay the rent as fixed by the arbitrator. The Government filed a writ appeal against this order.

Issues: 1. Whether the writ petition was maintainable after the dismissal of the Government's appeal against the award of the arbitrator? 2. Whether the Government was estopped from challenging the award of the arbitrator indirectly through a writ appeal after having unsuccessfully challenged it directly in the appeal under Section 11 of the Act?

Ratio Decidendi: 1. The High Court had already confirmed the award of the arbitrator under Section 11 of the Act, making it final and binding. Therefore, the Government could not challenge the award again through a writ petition. 2. The Government was estopped from challenging the award of the arbitrator indirectly through a writ appeal after having unsuccessfully challenged it directly in the appeal under Section 11 of the Act.

Final Decision: The writ appeal was dismissed, and the Government was directed to make the payment of the amount as fixed under the award within two months.

G. BIKSHAPATHY, J.

( 1 ) THE Writ Appeal is directed against the orders of the learned single Judge in w. P. No. 2108/92, dated: 18-8-1994.

( 2 ) THE facts leading to the Writ Petition are that the petitioners are the owners of the land ad measuring Ac. 4-26 gts. in S. No. 56/1 situated at Kanchanbagh, charminar Mandal, Hyderabad District. The Government requisitioned the said lands for the purpose of establishment of Defence Research Laboratories on 15-12-1978 on a tentative rent of Rs. 400/- per annum. Some other lands adjoining lands of the petitioners were also requisitioned and the rent appears to have been fixed at Rs. 950/- per annum per acre. Not satisfied with the fixation of the rent, the petitioners moved the Government and accordingly the arbitrator was appointed by the Government. Award was passed on 17-4-1986 fixing the rent at Rs. 950/- per annum with solatium of 15% and with interest @ 6% per annum from the date of taking possession of the lands. Aggrieved by the said Award, the Respondents No. 1 and 2 carried the matter to the High Court in C. M. A. SR No. 9184/88 and the same was dismissed on 10-7-1989. Consequent on the dismissal of the CMA, the petitioners submitted representations to the 2nd respondent on 25-7-1991 requesting for the payment of rent as directed by the Arbitrator. The learned single Judge allowed the Writ petition and directed the authorities to pay the rent as fixed by the Arbitrator from the period 15-12-1978 to 1-3-1985 within three months. Aggrieved by the said order of the learned single Judge, the present Writ Appeal has been filed.

( 3 ) THE learned counsel for the Central Government submits that the learned single Judge ought not to have allowed the compensation together with solatium and interest. He submits that under the provisions of R. A. I. P. Act, 1932 payment of solatium and interest is not contemplated and therefore, he submits that the Award of the Arbitrator directing payment of rents together with solatium and interest is highly illegal and contrary to the provisions of the Act 30 of 1952.

( 4 ) ON the other hand, the learned counsel for the Respondents submits that the Writ Appeal is thoroughly misconceived and the same is not maintainable. The Award of the Arbitrator was challenged by the Government and the same was dismissed. Therefore when once the appeal as provided under the R. A. I. P. Act is dismissed, the Government cannot have any possible defence for withholding the payment awarded by the Arbitrator unless further appeal is carried before the Supreme Court. Admittedly, no such steps were taken by the govemment. The Writ Petition was filed only for the implementation of the award of the Arbitrator. Therefore, the learned counsel for the Respondents submits that the Government cannot resort to parallel proceedings and hence the Writ Appeal is liable to be dismissed as not maintainable. We have considered the matter at length and we are in agreement with the contentions raised by the learned counsel for the Respondents. When once the Award of the arbitrator was challenged by the Government, under Section 11 of the Act 1952 and the said Appeal having been dismissed by the High Court, it would not be open for the Government again to obstruct the release of the amounts under the award. By filing the Writ Appeal the Government is indirectly making to challenge the validity of the award which was already decided against the government in the C. M. A. The Government is estopped from making any challenge to the Award of the Arbitrator either directly or indirectly when once it became final and binding on the Government. Though, the principle of parallel proceedings can be invoked in exceptional cases such as abuse of process of Court by fraud or misrepresentation depending on the relevant facts and circumstances of each case, the same cannot be applied in the instant case. As already stated, the Government having availed the appeal remedy under the statute and having bee





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