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2025 Supreme(Bom) 1448

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Shri. Ravi Raghunath Khanjode & Ors. - Appellant
Vs.
Harasiddh Corporation - Respondent
Arbitration Petition No.95 of 2024
Decided On : 19-11-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr. Sanjay Jain with Mr. Yogesh Naidu, Ms. Eden Ribeiro & Mr. Talha Siddiqui i/b Mr. Sanil Gada
For the Respondent:Mr. D.D. Madon, Senior Advocate with Mr. Gaurav Mehta, Ms. Shamima Taly, Ms. Sehyr Taly & Mr. Aziz Mohd. i/b S. Mahomedbhai & Co.

The court upheld the Arbitrator's award on property transactions, emphasizing the necessity of permissions under applicable land laws while affirming that a plausible ruling can stand even with insufficient reasoning.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Challenge to the Arbitral Award dated 29 March 2022 by the Sole Arbitrator - Validity and binding nature of various agreements including one from 1981 and another from 2010 upheld - Specific performance ordered for redevelopment of suit properties as part of slum rehabilitation - Other agreements in favor of a different developer declared null and void - Injunction against petitioners from pursuing conflicting claims. (Paras 1, 12, 62)

(B) Arbitration Proceedings - Requirement for recording independent reasons - Arbitrator's obligation to state intelligible reasons - Mere acceptance of parties' submissions insufficient for valid reasoning under Section 31(3) of the Arbitration Act. (Paras 37, 44)

(C) Land Legislation - Need for permissions under the Bombay Tenancy and Agricultural Lands Act, 1948 and the Maharashtra Land Revenue Code, 1966 - Issue of permission raised but inadequately analyzed by the Arbitrator - Court observes findings are nonetheless plausible and do not contravene public policy. (Paras 52, 62)

Facts of the case:
The petitioners, descendants of the original landowner, opposed the validity of several agreements concerning certain properties, claiming they violated land tenure laws. The respondent, a developer, contended that agreements were binding and sought specific performance and declarations. The learned Arbitrator ruled largely in favor of the respondent, validating certain agreements while declaring others illegal due to procedural defects. (Paras 1, 12)

Findings of Court:
The court upheld the Arbitrator's findings, noting that the legal conclusions reached were plausible and procedurally sound, with no patent illegality found in the award under review. (Paras 62)

Issues: The main issues included (i) whether the agreements were valid and binding, (ii) the need for permissions under land statutes, and (iii) the adequacy of reasoning provided in the Arbitrator's award. (Para 62)

Ratio Decidendi: The court emphasized that while reasons must be provided by the Arbitrator, a plausible determination on the merits of the case can stand even with sketchy reasoning, provided the conclusions do not manifestly violate public policy. (Paras 44, 62)

Result: The petition challenging the Arbitral Award is dismissed with no additional costs imposed. (Para 63)

Table of Content
1. dispute over multiple property transactions and agreements. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. background on the slum rehabilitation schemes and related legal actions. (Para 9 , 10)
3. summary of arbitration proceedings leading to the award. (Para 11 , 12 , 13)
4. petitioners' arguments regarding the validity of the arbitrator's award. (Para 14 , 15 , 16 , 17)
5. respondent's rebuttal against petitioner's objections. (Para 18 , 19 , 20 , 21)
6. court considers objections not specifically pleaded. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
7. exploration of the required permissions under relevant tenancy laws. (Para 31 , 32 , 33 , 34)
8. confirmation of the arbitrator's reasoning on specific legal grounds. (Para 35 , 36 , 37)
9. discussion on readiness and willingness related to performance. (Para 38 , 39 , 40 , 41 , 42)
10. final conclusions on the validity of the arbitrator's award. (Para 43 , 44 , 45)
11. court decision to uphold the arbitrator's award. (Para 62 , 63)
JUDGMENT:

SANDEEP V. MARNE, J.

1) This Petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) setting up a challenge to the Award dated 29 March 2022 passed by the learned sole Arbitrator. By the impugned Award, the learned Arbitrator has issued a declaration that the Agreement dated 10 July 1981 and the Tripartite Memorandum of Understanding dated 30 July 1997 are valid subsisting and binding on the Petitioner. The learned Arbitrator has further declared that the Agreement dated 11 August 2010 is valid, subsisting and binding on the Petitioners. The learned Arbitrator also ordered specific performance for doing all acts, deeds, matters, things and to sign and execute and register all documents and writings as may be necessary for development/redevelopment of suit property as slum rehabilitation scheme and to vest the same in favour of body of society/societies to be formed in respect of rehab and free sale of buildings/flats in the suit properties. The learned Arbitrator has also declared that the Agreement dated 25 November 2014 entered into by Petitioners No.1 to 23 in favour of Petitioner No.24, Power of Attorney dated 25 November 2014, Memorandum of Understanding dated 25 November 2014 and all other acts and deeds done and rights/agreements executed in favour of Petitioner No.24 are illegal, non-est, null and void and not binding on the Respondent. The learned Arbitrator has also passed an order of injunction to restrain the Petitioners from filing or prosecuting any proposal for declaration of suit properties as slum rehabilitation area or for acquisition thereof.

FACTS

2) The dispute amongst the parties concern following three properties, situated at Malad (East), Mumbai.

(i) Survey No. 255/2/2, C.T.S. No. 677A admeasuring 7201.92 square meters as per the document and 6510.50 square meters as per the Property Card;

(ii) Survey No.255/3, C.T.S. No.676 admeasuring 787.71 square meters as per the document and 714.10 square meters as per the Property Card; and

(iii) Survey No.267/1/1, C.T.S. No.610A/1/C admeasuring 1125.35 square meters as per the document and 786 square meters as per the Property Card;

The above three properties have been collectively referred to as ‘the suit properties’ in the Arbitration proceedings. According to Petitioners, the suit properties are Adivasi (Tribal) lands.

3) According to the Petitioners, Mr. Janglya Shanwar Khanjode became deemed purchaser of the suit properties in addition to other lands which are together described in the Petition as the larger land under the provi- sions of Section 32G of the then Bombay Tenancy and Agricultural Lands Act, 1948 (now renamed as Maharashtra Tenancy and Agricultural Lands Act, 1948) (BTAL Act). A Certificate under Section 32M of the BTAL Act dated 8 May 1981 was issued and Mutation Entry No.1509 was certified. After the death of Mr. Janglya Shanwar Khanjode the names of nine legal heirs were mutated to the revenue records. Petitioner

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