JUDGMENT

Prathiba M. Singh, J. The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 has been filed by Daya Singh & Sons (HUF) and others (hereinafter `owners') against M/s Som Datt Builders Pvt. Ltd. The petition challenges the impugned award dated 13th March, 2010 passed by the Ld. Arbitral Tribunal by 2:1 majority. The Petitioner Nos. 2 and 3 are the son and wife of Late Sh. Daya Singh respectively.

2. The dispute concerns 5, Jantar Mantar Road, New Delhi admeasuring around 2.52 acres (hereinafter `suit property'). The said property was given on lease by the then Chief Commissioner of Delhi to one Sh. Rai Bahadur S. Basakha Singh in 1920 on which a double storied house along with some annexes/out houses were constructed. The property was gifted by Sh. Rai Bahadur Singh to his son Sh. Daya Singh on 7th March, 1956, who then put the suit property in the common stock of the family namely S. Daya Singh & Sons (HUF).

3. M/s Som Datt Builders Pvt. Ltd. (hereinafter `builder') and the owner entered into a MOU dated 9th December, 1988 under which the builder was to raise construction on the suit property as a group housing complex. It was agreed that 40% of the constructed space was to be the share of the builder. The builder also undertook to apply to the L&DO on behalf of the owners for seeking permission for development of the group housing. The expenses, fees and charges for the same were to be borne by the builder. The parties agreed as per the MoU that the coverage would be a minimum of 2.5 FAR which was then applicable. Plans were to be jointly prepared and submitted to NDMC by 31st March, 1989. A sum of Rs.50 lakhs was paid to the owners by the builder on an interest free basis. On 15th December, 1988, an application was made with the L&DO seeking permission and conversion of the suit property into a multi-storied group housing complex. The charges for the same were paid by the builder. On 24th May, 1989, the building plans were also submitted with the NDMC. "The NDMC however, on 7th June, 1989, rejected the building plans as L&DO's permission for construction of group housing had not been given." At that stage, it was realised that the suit property could only be used for `institutional purposes' as per the master plan and not for `residential purposes'. The parties, however, went ahead and signed the development agreement dated 4th August, 1989 for developing the residential multi-storied housing project. A further sum of Rs.50 lakhs was paid to the owners. On 15th May, 1998, a notification was issued by the Government of India allowing use of the suit property for residential purposes. Applications were then made for conversion of the land from leasehold to freehold and the requisite charges were paid by the builder. The owners also wrote a letter to the L&DO on 28th January, 2000 seeking necessary permissions.

4. On 7th June, 2000, the Ministry of Urban Development, Government of India issued a notification that no residential plots would be approved for a group housing project. The said notification is extracted herein below:

"S.O.557 (E) -- In exercise of the powers conferred by Section 349A of the Delhi Municipal Corporation Act, 1957 and Section 260 of the New Delhi Municipal Council Act, 1994, the Unified Building Bye-Laws, 1983 stand modified to the extent as indicated in paras 1 to 3 of the Annexure to this Ministry's Notification of even number dated 23rd July, 1998, as required under Section 483 of the DMC Act and Section 388 of the NDMC Act. The building plans to be sanctioned in accordance with the amended bye-laws would be subject to provisions of the layout plans and, service plans already sanctioned, and no such lay out/service plans would be amended till arrangements for provision of augmented municipal services such as water, power, sewerage, road widening, circulation, parking, parks (green areas) etc., have been made "No Plot Housing can be converted into group-housi