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2018 Supreme(Del) 756

IN THE HIGH COURT OF DELHI AT NEW DELHI
YOGESH KHANNA, J.
Sumer Arora – Petitioner
Versus
Manoj Kumar and Another – Respondents
O.M.P. No. 2 of 2018 and I.A. No. 486 of 2018
Decided On : 09-02-2018

Advocates Appeared:
For the Petitioners: Mr. Rakesh Khanna, Mr. Pavan Kr. Chaturvedi, Mr. A.B. Singh, Ms. Shefali Jain, Ms. Seema Rao, Mr. Bushee Kezum.
For the Respondents: Mr. A.K. Singla, Mr. Parmanand Yadav.

Headnote:

Arbitration and Conciliation Act, 1996 - Section 30, 34, 73 - Arbitration - - Settlement award - Objection - Scope of - Arbitral award based upon the consent of the parties and was signed - Petitioner never participated in the arbitral proceedings neither was aware of it nor had engaged advocate - There is no ground to assail the award which is under Section 30 of the Act and Section 73(3) of the Act - It is final and binding - There is no scope for objections under Section 34 of the Act to the arbitral award - Petitioner never participated in the arbitral proceedings is after thought - Arbitral award is a consent award being reasoned one based upon the settlement deed - Plea of the petitioner being afterthought - Petition stands dismissed.

JUDGMENT :

YOGESH KHANNA, J.

1. The petitioner has filed this petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred as ‘the Act’) for setting aside the arbitral award dated 12.08.2016.

2. The petitioner has challenged the impugned award on the grounds as follows:-

(a) The respondent on the basis of the frivolous arbitration award dated 12.08.2016, wherein petitioner had neither participated into the alleged arbitration proceedings nor was provided any opportunity or even served with any notice of the arbitration proceedings or consented for the appointment of the learned sole arbitrator Justice R.B. Misra (Retired) for the alleged arbitration proceedings has hatched criminal conspiracy in connivance with respondent No. 2 and his father Sh. Mahesh Kumar and misrepresented before the arbitrator in fraudulent arbitration proceeding which was conducted at 503, Adiswar Apartment, 34, Feroz Shah Road, Connaught Place, New Delhi in which the alleged award dated 12.08.2016 was passed in favour of respondent No. 1 and also further played trick to get the award transferred in the name of respondent no. 2.

(b) The whole arbitration is based upon an alleged addendum agreement dated 13.05.2016 to an alleged original agreement to sell dated 07.10.2008 whereas the original agreement to sell was never placed before the arbitrator which clearly establishes the falsity of the claim, it was not legally possible in 2008 for the petitioner to enter into any agreement to sell as there was already a registered Mortgage Deed between petitioner and Ms. Seema Juneja vide registration No. 26936 dated 23.03.2007 at the time of alleged agreement to sell dated 07.10.2008 and it became free from encumbrances on 11.03.2015 and also a suit regarding the same mortgage deed between petitioner and Ms. Seema Juneja was pending and is still sub-judice as on date, agreement to sell dated 07.10.2008, its registration was never brought to the notice of the arbitrator, and with the amendment of the Registration Act and Transfer of the Property Act, an agreement to sell has to be compulsorily registered after 24.09.2001. Therefore, even if it is presumed that there was an agreement to sell, no right can be created or extinguished in immovable property on the basis of an unregistered agreement to sell.

(c) As per the alleged agreement to sell dated 07.10.2008, the petitioner had allegedly entered into an agreement with the respondent No. 1 to sell his land bearing No. 10/1 (7-14) Village Dhumaspur, Tehsil and District Gurugram, Haryana to total consideration of Rs. 3,00,00,000/- in which Rs. 40,00,000/- was paid in cash at the time of the agreement which has not been explained by the respondent No. 1 as to how he came into possession of such a huge cash without any ITR to back this humungous claim. Further respondent No. 1 has claimed that between 07.10.2008 to 14.05.2016 he has made payment to the tune of Rs. 2,43,80,000/- mostly in cash and also filed a false schedule of payment before the arbitrator and did not file any document/receipt of the same, there was never an arbitration agreement and there was never agreement to sell between the petitioner and respondents the whole arbitral proceeding is mala-fide and illegal.

(d) In July 2017 petitioner came into knowledge of the alleged arbitration award after receiving the summon of execution petition filed by the respondent No. 2 before the Court of Gurugram. Immediately after receiving of summon of execution proceeding sent an application for certified copy of complete documents of the arbitration proceedings through registered post vide application dated 04.08.2017 to the office of the sole arbitrator but did not receive the copy of the same, then again petitioner on 26.10.2017 sent another application for certified copy of complete documents of the arbitration proceedings through registered post and all efforts of the petitioner went in vain. Petitioner after getting no response to hi




























































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