JUDGMENT :

Vibhu Bakhru, J.

The petitioners have filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter 'the Act') inter alia impugning the arbitral award dated 06.05.2016 (hereafter 'the impugned award') made by the sole arbitrator.

2. The impugned award was rendered in the context of certain disputes that had arisen between the parties in relation to the Memorandum of Understanding dated 12.05.2011 (hereafter 'the MoU') as extended by an agreement dated 02.11.2013 (hereafter 'the Extension Agreement') entered into between the parties for release of five acres of land bearing Khasra No. 12/9, 12, 10, 11/1, 6, 15/1 in Village Daulatpur, Nasirabad (Carterpuri) Tehsil, District Gurgaon, Haryana (hereafter 'the subject land').

3. The petitioners are the joint owners of the subject land. They had constructed certain structures on the subject land, which were in use as a “Residential Farm House”. Around 1980, Indian Oil Corporation Limited (hereafter 'IOCL') wanted to lay a gas pipeline over the subject land and the Central Government issued Notification No. 1469 dated 08.05.1980 under Section 3 of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962. As the construction of the pipeline would have adversely affected the existing structures built on the subject land, the petitioners filed a civil suit for an injunction against the same. By order dated 11.05.1981, interim injunction was granted in favour of the petitioners. IOCL appealed against the said order, however, the same ended in a compromise between the parties therein to the effect that pipelines would be laid in a manner without affecting the existing structures on the subject land.

4. On or about 30.11.1981, the Haryana Government issued a notification under Section 4 of the Land Acquisition Act, 1894 (hereafter 'the 1894 Act') for acquiring a large tract of land including the subject land. The petitioners filed their objections to the same. Thereafter, on or about 15.11.2004, a declaration was issued in terms of Section 6 of the 1894 Act proclaiming the subject land to be required for public purpose.

5. The petitioners filed a writ petition (W.P. No. 394/1984) in the Punjab and Haryana High Court (hereafter 'the High Court') challenging the validity of the proceedings inter alia on the premise that structures had been raised on the subject land - which were used for residential purposes - prior to issuance of the notification under Section 4 of the 1894 Act. However, the same was dismissed. This led the petitioners to move the Supreme Court by way of two Special Leave Petitions. By an order dated 14.10.1986, the Supreme Court allowed the appeals by remitting the matter to the High Court for fresh consideration.

6. Whilst the proceedings were pending, the Haryana Government issued a policy decision dated 24.01.2011 to the effect that requests for release of land acquired by it will be considered in cases where objections were filed against such acquisition; the lands acquired had any structure built upon them prior to the date of the notification under Section 4 of the 1894 Act; and such structure was inhabited and used by the owner for his own residential purposes.

7. During the pendency of the writ petition, the petitioners entered into the MoU dated 12.05.2011 with the respondents with the objective that the respondents will get the subject land released from the State Government and its land use would be changed for building residential apartments. The MoU was valid for a period of 30 months, that is, till 11.11.2013. In terms of the MoU, it was agreed that after the release of the subject land, the petitioners would transfer 30% of their share in the subject land in favour of the respondents. Further, it was agreed that an application for change in the use of the subject land would be filed with the concerned authorities, so that residential apartments could be built on the subject land or part th