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2006 Supreme(Del) 1380

High Court Of Delhi
Pradeep Nandrajog
LEELA GOEL - Appellant
Versus
PREM SAGAR SHARMA - Respondents
IA 6798 Of 1986
Decided On : 08/21/2006

Advocates Appeared:
ALOK BACHAWAT, AMIT GAURAV SINGH, B.L.Anand, U.N.BACHHAVAT, Valmiki Mehta

Headnote:Arbitration and Conciliation Act, 1996 Section 34 - Challenging the award -.Agreement to construct dwelling house - Award passed by sole arbitrator as non-speaking award - Court considered transfer by way of agreement to sell with simultaneous execution of general power of attorney and agreement of the construction were judicially recognized - It is settled law that if two views are possible and an arbitrator takes a particular view which has been judicially recognized - Court has taken view that arbitrator was empowered to publish a non-speaking award and this court cannot probe the conclusion 01 arbitrator - Held, objection dismissed and upheld the award upheld.

       [Paras 24, 31, 34 & 49]


PRADEEP NANDRAJOG, J.

( 1 ) VIDE order dated 9. 9. 1983 in Suit No. 509-A/1981 Smt. Leela Goyal and Anr. Vs. Shri Prem Sagar Sharma, disputes between Leela Goyal and her son ashok Goyal as one party and Shri Prem Sagar Sharma as the other party were referred to the sole arbitration of Shri Lokeshwar Prasad, son of Shri Bulati dass. As per the order of reference learned Arbitrator was to decide 7 issues which were listed in the order of reference :-

( 2 ) ON the issues, the award is as under :-"disputes AWARD a) That as to what is the nature The real transaction of the real transaction between the between the parties is parties. Is it an agreement of sale of that of sale of plot No. the plot of land bearing No. C-697, C-697, New Friends new Friends Colony, New Delhi,or is Colony, New Delhi. it an agreement to construct simplicitor. b) As to whether the petitioners are No. liable to pay to the respondent anything in respect of the concerned matters respecting the said plot of land. c) As to whether the respondent is No. The question of entitled to take back possession of the any terms does not plot of land bearing No. C-697, New arise. Friends Colony, New Delhi or the building constructed thereon, complete or incomplete. If so, on what terms d) Whether the respondent is liable No. to execute powers of attorney in favour of any person nominated by the petitioners, for the purpose of substituting for Shri S. K. Goyal, the deceased husband of the petitioner No. 1. e) Is the respondent entitled to cancel the No. agreement in question. f) Is the respondent entitled to cancel No. and revoke the WILL executed by him. g) Is the respondent entitled to revoke, or No. cancel the declaration/promise made by him in this affidavit dated 21. 5. 1979, sworn on 6. 6. 79. h) Whether the agreement dated 21. 5. 1979 The Agreement between the parties is valid or not is valid. "

( 3 ) VIDE IA No. 6798/1986 Prem Sagar Sharma has filed objections to the award, inter alia, alleging that there was no valid agreement between the parties and since the arbitration clause was contained in the agreement, the arbitration clause also perished. As a limb of this objection, it is urged that the agreement dated 21st May, 1979 is void. Next objection urged is that Ashok goyal, son of Leela Goyal was a minor when agreement dated 21st May, 1979 was entered into and therefore, on said count also, agreement is void. The next objection taken is that the learned Arbitrator misconducted the proceedings in as much as he travelled beyond the scope of the reference. The last objection was that the award required registration in as much as the same created interest in immovable property in favour of Leela Goyal and her son and extinguished the right of Prem Sagar Sharma in respect of immovable property.

( 4 ) BRIEFLY stated, relevant facts, necessary for decision are that on 21st May, 1979, Leela Goyal and her minor son Ashok Goyal entered into an agreement with the objector Shri Prem Sagar Sharma. The agreement is titled as 'the AGREEMENT TO CONSTRUCT THE DWELLING HOUSE'. The said agreement states that Prem Sagar Sharma is the perpetual sub-lessee of a residential plot bearing no. C-697, New Friends Colony. That Leela Goyal and her minor son have agreed to construct a residential plot on this plot. That the estimated cost of construction per square foot is Rs. 130/ -. That Leela Goyal and her minor son have deposited a sum of Rs. 1,05,000/- with Prem Sagar Sharma as security for performing their obligations under the agreement. That Prem Sagar Sharma has handed over the original sub-lease to Leela Goyal and her minor son as also delivered effective physical possession of the plot. That on completion of the building Leela Goyal and her minor son shall intimate to Prem Sagar Sharma the fact of completion of the building. The cost of construction together with the security deposit would be paid by Prem Sagar Sharma to Leela Goyal and her minor son within 15 days and if he fai








































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