IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, J.
VIRALBHAI NATWARBHAI PATEL – Petitioner
Versus
BHARATBHAI PRAVINBHAI PATEL – Respondent
Special Civil Application No. 12158 of 2022
Decided On : 20-01-2023
Constitution of India, 1950 - Article 226, 227 - Arbitration Act, 1996 - Section 11(5), 34, 30 - Limitation Act, 1963 - Article 119(b) - Arbitration proceedings - Award is void - Set aside entire proceedings - Petitioners have sought order declaring that entire arbitration proceedings initiated and concluded by respondent No. 4 and consequent award are illegal, without jurisdiction and competence, null and void abinitio, without having any force of law and contrary to settled principle of law - A further prayer is made to set aside entire proceedings – Held, Case of Amrit Bhikaji Kale vs. Kashinath Janardhan Trade, this Court has held that when a Tribunal of limited jurisdiction erroneously assumes jurisdiction by ignoring a statutory provision and its consequences in law on status of parties or by a decision are wholly unwarranted with regard to jurisdictional fact, its decision is a nullity and its validity can be raised in collateral proceeding - In light of this position of law, even submission of learned counsel for respondents that petition is grossly belated and barred on ground of delay and latches deserves to be an objection which does not defeat consideration - For all these grounds therefore, award of Arbitral Tribunal is held to be illegal, without jurisdiction and has to be treated as null and void - Award is therefore quashed and set aside - Petition allowed.
JUDGMENT :
BIREN VAISHNAV, J.
1. Rule. Respective learned advocates waive service of notice of Rule for and on behalf of the respective respondents.
2. Heard Mr. Mehul Shah, learned Senior Counsel assisted by Mr. Manan Shah, learned advocate for the petitioners, Mr. Shakeel A. Qureshi, learned advocate for respondent Nos. 1 to 3 while Mr. Paras K. Sukhwani, learned advocate for respondent No. 4.
3. In this petition, under Article 226 of the Constitution of India, the petitioners have sought a writ, order or direction declaring that the entire arbitration proceedings initiated and concluded by respondent No. 4 and the consequent award dated 30.05.2016 are illegal, without jurisdiction and competence, null and void abinitio, without having any force of law and contrary to the settled principle of law. A further prayer is made to set aside the entire proceedings.
4. The facts in brief are that the subject lands are agricultural lands bearing survey No. 1106 and 1109, block Nos. 1406 admeasuring 23426 situated at village Variav, Taluka Choryasi, District Surat. The lands were originally owned by Mr. Rajubhai Manilal Patel and Mr. Rameshbhai Manilal Patel. The original owners executed a registered sale deed in favour of petitioner No. 1 - Mr. Viral Natvarbhai Patel on receipt of entire consideration. It is the case of the petitioners that on 15.03.2004, a purported settlement agreement came to be executed between the present petitioners and respondent Nos. 1 to 3, whereby, it was agreed that the subject lands would be divided amongst themselves in the ratio as stated in the agreement. The agreement had an arbitration clause which stated that in case of any dispute between the parties, all the parties to the agreement shall appoint the sole arbitrator:
(ii) It is the case of the petitioners that since the respondents had filed an Execution Application on 07.01.2017 for execution of the award to which the petitioners had filed a reply on 08.08.2017 and the execution proceedings were pending and in view of the proceedings pending before the Revenue Authorities with regard to change in the mutation entry pursuant to the award in question, there has been some delay in filing the petition and therefore, the period where the petitioners were bona-fide prosecuting before the Executing Court must be excluded. The revenue proceedings are a subject matter of challenge as respondent Nos. 1 to 3 have consistently failed to get the revenue entry mutated in their favour and
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The main legal point established in the judgment is the need for exceptional circumstances to invoke the court's jurisdiction under Article 226 and 227, the limitations on judicial interference in ar....
Section 12 sets out grounds of challenge to person appointed as arbitrator and duty of an arbitrator appointed, to disclose any disqualification he may have.
Once arbitration has commenced in the arbitral tribunal, parties have to wait until the award is pronounced unless, of course, a right of appeal is available to them under Section 37 of the Act even ....
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