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2025 Supreme(Cal) 437

IN THE HIGH COURT AT CALCUTTA
Debangsu Basak, Prasenjit Biswas, JJ.
Dr. Debojit Dey – Appellant
Versus
Tata Housing Development Company Ltd. – Respondent
F.M.A. 2386 of 2016
Decided On : 27-08-2025

Advocates Appeared:
For the Appellant : Mr. Gopal Ch. Ghosh, Sr. Adv., Mr. Sunandana Saha. Adv.
For the Respondent: Mr. Soumabho Ghosh, Adv., Mr. Biswajit Kumar, Adv., Mr. Aayush Lakhotia, Adv.

The scope of judicial intervention in arbitration awards under Section 34 of the Arbitration and Conciliation Act, 1996, is limited to assessing procedural validity, not merits of the case.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Application challenging validity of arbitration award - Dismissal of appellant's application by District Judge upheld - Court affirmed that re-evaluation of evidence is not warranted under Section 34 - Validity of termination under Clause 9 of the agreement confirmed - Appellant failed to establish violation of public policy. (Paras 2, 35, 34)

Facts of the case:
The appellant challenged the order dismissing an application under Section 34 against the arbitrator's award relating to a cancelled flat allotment due to payment defaults. The appellant claimed compliance with payment terms but the respondent asserted default leading to cancellation. (Paras 1-11)

Findings of Court:
The court agreed with the arbitrator's findings regarding valid contract termination and the scope of review limited under the Act. It upheld that the appellant did not demonstrate any grounds for setting aside the award. (Paras 35, 36)

Issues: The main issues included whether the termination of the agreement was valid based on default and what constitutes public policy violations under the Act. (Paras 10, 34)

Ratio Decidendi: The court ruled that Section 34 does not permit re-evaluating evidence or substituting findings of the arbitrator; it emphasized the need for adherence to procedural justice without overstepping statutory limitations. (Paras 33, 34)

Result: Appeal dismissed.

Table of Content
1. dismissal of arbitration appeal regarding allotment. (Para 1 , 2 , 3 , 4 , 5)
2. payment delays and alleged contract violations. (Para 6 , 7 , 9 , 12 , 13)
3. scope of court's review under section 34. (Para 14 , 16 , 17 , 18)
4. validity of contract termination and arbitration findings. (Para 30 , 31)
5. court's agreement with arbitration decision. (Para 33 , 34 , 35 , 36)

JUDGMENT :

DEBANGSU BASAK, J.

1. Appellant has assailed the judgment and order dated October 3, 2015 passed by the learned District Judge, Barasat, North 24 Parganas, in Misc. (Arbitration) Case No. 185 of 2014.

2. By the impugned judgment and order, learned District Judge has dismissed an application under Section 34 of the Arbitration and Conciliation Act, 1996, filed by the appellant subha karmakar Digitaly signed by subha karmakar Date: 2025.08.27 assailing the award dated August 14, 2014 passed by the learned arbitrator, Mr. Paritosh Kumar Pal.

3. Learned Senior Advocate appearing for the appellant has contended that, the appellant pursuant to an advertisement dated May 8, 2009 applied for a flat in a project executed by the respondent. He has contended that, a residential apartment being Flat No. 16D on the 16th floor of Tower A was confirmed by the respondent. Respondent had issued a letter of allotment dated June 19, 2010 with regard thereto. Parties had initially agreed that the consideration for the flat would be Rs. 33,44,875/-.

4. Learned Senior Advocate appearing for the appellant has contended that, the parties entered into an agreement for sale which was subsequently modified on March 31, 2011. The consideration had been modified to Rs. 32,44,875/-. Subsequently, by a supplementary agreement, the schedule of payment had been modified.

5. Learned Senior Advocate appearing for the appellant has contended that, the respondent gave permission to the appellant to mortgage the flat to HDFC on October 10, 2010 which the appellant had done.

6. Learned Senior Advocate appearing for the appellant has contended that, the appellant is a cancer surgeon by profession. Due to the pressing professional commitments, there had been delay in payment of the 8th instalment on the part of the appellant. The appellant had been to the site office of the respondent and prayed for extension of deadline by two weeks. Appellants had deposited a sum of Rs. 50,000/- by cheque on October 22, 2011 and Rs. 75,500/- by a cheque dated October 29, 2011. The respondent had encashed such cheques on October 25, 2011 and November 1, 2011 respectively.

7. Learned Senior Advocate appearing for the appellant has contended that, appellant obtained loan from HDFC Bank for purchasing the flat in question. Appellant had made over a cheque for Rs. 5,68,512/- dated November 2, 2011, on November 1, 2011. However, such cheque was not accepted by the respondent. He has referred to various electronic mails issued by the appellant to the respondent in this regard.

8. Learned Senior Advocate appearing for the appellant has submitted that, the appellant came to learn from HDFC that, the respondent cancelled the allotment of the flat on November 29, 2011.

9. Learned Senior Advocate appearing for the appellant has contended that, the respondent had issued a notice dated October 14, 2011. The appellant had paid all instalments. Appellants had obtained an order of injunction under Section 9 of the Act of 1996 on February 9, 2012 restraining the respondent from dealing with the flat in question. He has pointed out that, the respondent created third party rights in respect of the flat in question on February 15, 2012 which is a violation of an order of Court. Therefore, the purported sale in respect of the flat concerned is bad in law.

10. Learned Senior Advocate appearing for the appellant has contended that, it is alleged as against the appellant that the appellant allegedly did not act under Clause 9 of the agreement. He has referred to Clause 9 of the agreement and submitted that, the appellant di

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