SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2022 Supreme(P&H) 1003

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Raj Mohan Singh, J.
State Of Haryana - Appellant
Versus
M/s Raja Ram Mohan Rai Education Foundation Society & Ors. – Respondents
FAO No. 484 of 2022 (O&M)
Decided On : 19-04-2022

Advocates:
Mr. Samarth Sagar, Addl., A.G., Haryana.

Headnote:

Arbitration - Land Allotment Dispute - Arbitration and Conciliation Act, 1996, Section 34 - CWP No.1743 of 2004, COCP NO.1262 of 2006 and CR No.8346 of 2014 - The court discussed the Arbitration and Conciliation Act, 1996, Section 34 and the related case law. The court emphasized the limited scope of interference by the court in arbitration matters and the grounds for setting aside an award under Section 34 of the Act. The court highlighted the importance of documentary evidence and the principle that mere erroneous appreciation of fact would not constitute 'patent illegality' warranting interference by the court.

Fact of the Case:

The dispute arose from an agreement between the Government of Haryana and a society for the allotment of land. The society faced objections from the Department regarding the use of the land, leading to a civil suit and subsequent arbitration. The appellant Department filed an objection petition under Section 34 of the Arbitration and Conciliation Act, which was dismissed by the court.

Finding of the Court:

The court found that the Arbitrator had considered the issues raised and the evidence presented, and concluded that the findings of the Arbitrator did not warrant interference under Section 34 of the Act. The court emphasized the limited scope of interference in arbitration matters and the importance of documentary evidence.

Issues: The issues included the validity of notices, the construction timeline, and the extent of construction required under the agreement. The court also considered the correct address of the claimant society and the procedural aspects of the arbitration proceedings.

Ratio Decidendi: The court held that the mere erroneous appreciation of fact would not constitute 'patent illegality' warranting interference by the court under Section 34 of the Arbitration and Conciliation Act. The court emphasized the importance of documentary evidence and the limited grounds for setting aside an award.

Final Decision: The court dismissed the appeal, emphasizing the minimization of interference by the court in arbitration matters and the lack of grounds for setting aside the award under Section 34 of the Act.

JUDGMENT

ORDER

Raj Mohan Singh, J. - This appeal has been preferred by the appellant against the order and judgment dated 19.02.2021 passed by the Additional District Judge, Chandigarh, whereby objection petition under Section 34 of the Arbitration and Conciliation Act, 1996 against the award dated 12.03.2019 passed by the Arbitrator/respondent No.3 was dismissed and award was upheld.

2. Admittedly, the award was passed by respondent No.3 being the sole Arbitrator. Arbitrator was appointed vide order dated 11.10.2017 passed by the Division Bench of the High Court in CWP No.1743 of 2004, COCP NO.1262 of 2006 and CR No.8346 of 2014. Government of Haryana through its Secretary (Animal Husbandry) entered into an agreement with Raja Ram Mohan Rai Education Foundation Society (Registered) on 02.12.1986, whereby plot measuring 2 acres 7 kanals was handed over to the Society on 11.12.1989 i.e. 3 years after execution of the agreement. There was no civic amenities in the land and the land was agricultural in nature. After putting efforts, the society obtained all civic amenities in order to make site usable for the construction of a vocational institute. The building plans were prepared and the building of first block was constructed in the year 1994 i.e. after 5 years from the date of handing over possession of the land. Building was comprising of one hall measuring 40'' X 32'', two class rooms, office, servant quarters and toilet block etc. During construction period, the allotted land came within the municipal limits of Hisar and as such, Municipal Council, Hisar restrained the society from raising further construction and asked them to submit the building plan. On 04.05.1994, the building plan was submitted in the office of Municipal Committee, Hisar for approval, but the same was sanctioned on 22.07.2002. Thereafter, the claimant society started raising construction as per sanctioned plan. The construction of the first block was completed prior to the year 1994 and the same was assessed by the Municipal Council for the purpose of house tax in the year 1995-96. A demand of house tax was raised vide bill dated 08.02.1996 and the same was paid. The electricity connection of the constructed block was also obtained by the claimant society. Clause-4 of the agreement dated 02.12.1986 reads as under:-

'The land is transferred subject to condition that it will be constructed or put to use for the purpose already indicated within a period of five years, failing which, it would be resumed.'

3. Perusal of the aforesaid condition would show that the extent of construction was not recited in the said clause. By invoking the aforesaid clause, the Chief Superintendent, Animal Husbandry Department, Hisar issued a show cause notice dated 20.02.2003 on the ground that the claimant society has not put the land to use for the purpose, for which, it was allotted and the land was lying vacant. The society was directed to hand over the possession of the land to the Department, otherwise action would be taken for taking possession of the land back from the claimant society.

4. The action of the Department was assailed by the society by way of filing a civil suit for permanent injunction. The suit was withdrawn vide order dated 11.10.2003 with permission to file fresh suit after taking into consideration the requirement of Section 80 CPC. The Department again issued show cause notice dated 18.07.2003 for resumption of the allotted land during pendency of the suit. The alleged notice was never received by the claimant society as per its case. Since the second notice dated 18.07.2003 was never served upon the claimant society, therefore, the same could not be produced before the Civil Court. The second notice was claimed to be ante dated, forged, fabricated document and was also against the principles of natural justice.

5. Thereafter, the Department passed ex party order of resumption dated 26.08.2003, thereby superseding the earlier notice dated 20.02.2003, re

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top