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2014 Supreme(Del) 2768

HIGH COURT OF DELHI
RAJIV SHAKDHER, J.

N.N. OJHA – Petitioner
Versus
PREM MEHRA – Respondent
OMP 586/2013
Decided On : 23.12.2014

Advocates Appeared:
Mr Puneet Aggarwal, Advocate.
Mr Abhijat & Mr Rishabh Bansal, Advocates

Headnote:

Arbitration and Conciliation Act, 1996 - Section 9 - Civil Procedure Code, 1908 - Order 39 Rule 1, 2 - Agreement - Transfer of property - Injunction - Damage - MOU was executed between the respondent and one Mr Islam qua the property - Petitioner has invested a sum of Rs. 23 lacs - Respondent has not been able to secure transfer of interest in the property in his and the petitioner's favour, from Mr. Islam - Mr. Islam is in possession of the land, and to obtain possession respondent would have to take recourse to due process of law - Rights of the petitioner in the 2005 MOU are alive and the agreement can perhaps be consummated in the foreseeable future - Balance of convenience would also be in favour of the petitioner as the petitioner has done, what he was required to do, under the terms of the 2005 MOU - Petitioner has in his letter indicated that he is ready to pay the balance amount provided it is demonstrated to him that the money already invested has been properly utilized - Respondent says, in his defence, is that, the petitioner, did not agitate his rights - Subject matter of the 2005 MOU is to jointly secure development of the property - To calculate damages may prove to be difficult with no finality reached in the dispute pending between the respondent and Mr. Islam - Held, injunction order dated 29.10.2013, should continue to operate in the matter, pending the conclusion of the arbitral proceedings between the parties - Injunction order is made absolute.

JUDGMENT :

RAJIV SHAKDHER, J.

1. This is a petition filed under Section 9 of the Arbitration & Conciliation Act, 1996 (in short the Act), whereby an injunction is sought against the respondent. The injunction sought is that the respondent ought to be restrained from creating third party interest and/or disposing of, selling or mortgaging the immovable property situate in revenue village of Satbari, Mehrauli, New Delhi, forming part of Khasra No. 1103, admeasuring 85 bighas (hereafter referred to as the property in issue).

2. Notice in this petition was issued on 03.06.2013. The notice was made returnable on 10.06.2013. Despite service, on the returnable date there was no representation on behalf of the respondent. The matter was, however, adjourned to 12.06.2013. On 12.06.2013, once again, there was no representation on behalf of the respondent. Consequently, on 12.06.2013 an order of injunction was passed qua the respondent, whereby he was restrained from disposing of, selling, mortgaging or creating third party interest in the aforementioned property. However, on this very date, the petition was disposed of.

2.1 The respondent, thereafter, moved an application being: IA No. 11813/2013, under Order 9 Rule 13 of the Code of Civil Procedure, 1908 (in short CPC) for recall of order dated 12.06.2013. Notice in this application was issued on 29.07.2013. The notice was made returnable on 27.09.2013. On the said date, accommodation was sought on behalf of the petitioner, which resulted in, the application, being posted for hearing on 29.10.2013. On that date, it was contended on behalf of the respondent that the respondent’s son, who was present in court on 10.06.2013, had wrongly noted the next date as 14.06.2013, as against the correct date, which was 12.06.2013.

2.2 Counsel for the petitioner, while refuting this fact had contended that he would have no difficulty in the main petition being put back on board, as long as the interim order, protecting the petitioner’s interest, is continued.

2.3 Accordingly, the application was allowed in those terms vide order dated 29.10.2013. The main petition was put back on board with the caveat that pending disposal of the petition, the respondent will maintain status quo as to title and possession and/or shall not create any third party interest in the property in issue. Time was also granted to the respondent to file his reply with a corresponding liberty granted to the petitioner to file a rejoinder. The record shows, that this process continued till at least July, 2014.

3. It is in this background that the pleadings in the matter got completed. The arguments in the petition were heard for the first time on 26.11.2014 and thereafter on 01.12.2014, when the judgement in the matter was reserved.

3.1 I may only note that, during the pendency of the present petition, a separate petition under Section 11 of the Act was filed by the petitioner, on 01.11.2014. This petition is numbered as Arb. P. No. 551/2014. Another Single Judge of this court, i.e., Hon’be Ms Justice Deepa Sharma, has issued notice in the said petition, on 10.11.2014, which is made returnable on 12.02.2015.

4. In order to adjudicate upon this petition, the following facts are required to be noticed:

4.1 The petitioner and the respondent have executed a Memorandum of Understanding dated 21.03.2005 (in short 2005 MOU). The 2005 MOU concerns the aforementioned property.

4.2 The recital to the 2005 MOU records that, one, Mr Islam, son of Manphool, resident of Village Satbari, Mehrauli and his predecessors-in-interest, have held tenancy rights prior to consolidation proceedings carried out qua the property in issue.

4.3 The recital further records that the consolidation proceedings vis-a-vis the said property took place in 1953-54.

4.4 In the recitals, there is also reference to the fact that Mr Islam and his predecessors-in-interest have been in uninterrupted possession of the property in issue since the pre-consolidation period and






































































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