The court ruled that arbitration findings are minimally subject to judicial review, confirming compensation awarded for unlawful possession and possession restoration based on the terms of the compromise agreement.

JUDGMENT

Jasmeet Singh, J.

O.M.P. (COMM) 250/2021

1. This is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter, "the Act") challenging the Award dated 18.05.2021 (hereinafter, "Impugned Award") passed in Arbitration Case No. (AR) 9/2019, whereby the learned Sole Arbitrator has allowed the claims of the respondents against the petitioners and thereby has primarily directed the petitioners to redeliver the possession of land measuring 435 sq. yds, situated at 268, Naseem Bagh, Jamia Nagar, Okhla, New Delhi (hereinafter, "disputed plot/land").

Brief Facts

2. The brief facts are as under:

3. The predecessor-in-interest of the respondents (claimants in the arbitration proceedings) i.e. Late Mohd. Iqbal was allegedly in illegal and unauthorized possession of the disputed plot since 1974 and as on 25.02.1991.

4. The predecessor-in-interest of the petitioners (counter-claimants and respondents in the arbitration proceedings) i.e. Late Mohd. Amin instituted Suit No. 331/1989 against Late Mohd. Iqbal for permanent injunction, to restrain the defendant (Mohd. Iqbal) from interfering with his (Mohd. Amin) possession and right of peaceful enjoyment of the disputed land. During the pendency of the suit, the parties entered into a Compromise Agreement dated 25.02.1991 (hereinafter, "Agreement") and filed a joint application under Order XXIII Rule 3 of the Code of Civil Procedure, 1908 (hereinafter, "CPC") along with their affidavits, and the suit was dismissed as withdrawn with the direction that the parties shall remain bound by the terms of the Agreement.

5. The Agreement recorded that Mohd. Amin was the exclusive owner and in possession of the property known as Nasim Bagh bearing Khasra No. 138 (5 Bigha, 3 Biswa), 139 (11 Biswa), 140 (2 Bigha, 6 Biswa) and 141 (2 Bigha, 1 Biswa) comprising of an area measuring about 8430 sq. metres. Mohd. Amin had entered into an agreement with developer M/s Unitech Limited for developing a portion of the said property measuring 6000 sq. mts. into a Multi Storeyed Group Housing Complex (hereinafter, "Project"). The Agreement also recorded that Mohd. Iqbal was "allegedly" in illegal and unauthorised possession of the disputed land and had "allegedly" made illegal constructions thereon. The Agreement was entered into to avoid further litigation, and by way of the same, the disputed land was handed over to Mohd. Amin for the Project on the condition that Mohd. Amin would deliver 6% of the total built up area in the Project building to Mohd. Iqbal.

6. As per Clause 10 of the Agreement, both the parties agreed that if for any reason the proposed Project was abandoned, the disputed land would be returned to Mohd. Iqbal who would then be free to use the said land as desired by him and the Agreement would become null and void. Clause 10 reads as under:

"10. That without prejudice to the aforesaid, it is hereby specifically agreed by and between the parties that if for any reasons, the aforesaid Multistoreyed Group Housing Project is aban