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2023 Supreme(MP) 375

IN THE HIGH COURT OF MADHYA PRADESH
Vivek Rusia and Anil Verma, JJ.
Apollo Real Estate LLP v. Dr. Arun Waghmare & Others
Arbitration Appeals No. 33 of 2020 and 34 of 2020;
Decided on 13.9.2023

Advocates:
Ramakrishnan Viraraghavan with Nitin Phadke for appellant; Aniket Abhay Naik and Pradyumna S. Kibe for respondents No. 1 to 3; Shekhar Bhargava with Amit Singh for respondents No. 4 to 6; Rohinton T. Thanevala for respondent No. 7.

Headnote:

¼1½ ek/;LFke~ vkSj lqyg vf/kfu;e] 1996 & /kkjk 34 & 'kfä dh O;kfIr & foØ; djkj esa ek/;LFke~ [kaM fd çFke vkSj f}rh; i{kdkjksa ds e/; fookn nks ukfer e/;LFkksa }kjk U;k;fu.kZ; gksaxs & lgefr foys[k ds ç'u ij dksbZ fookn ugha vr% og ek/;LFke~ ds ijs gS & e/;LFk ;g fook|d fojfpr dj xyr vkxs c<+k fd bu Hkkoh foØsrkvksa ;k buds okfjlksa dks laifÙk foØ; djus ds muds çkfèkdkj esa =qfV ;k deh ds vk/kkj ij lafonk ds fofufnZ"V ikyu ls bUdkj djus fn;k tk ldrk gS ;k ugha & ;g fook|d Hkh dHkh funsZf'kr ugha fd;k x;k fd m"kk ok?kekjs ;k johaæ ok?kekjs dh e`R;q ds mijkar muds fof/kd okfjlksa dh lgefr vko';d ugha gksxh & ;gk¡ rd fd e/;LFk }kjk dksbZ fook|d fojfpr ugha fd;k x;k fd fnoaxr johaæ ok?kekjs ds fof/kd okfjlksa dh lgefr vko';d gS ;k ugha & e/;LFk us bl fook|d ij fu"d"kZ xyr vfHkfyf[kr fd;k fd johaæ ok?kekjs dh ,slh lgefr ds vHkko esa djkj vfu.kkZ;d vfuf'pr ;k vçoZruh; ugha gks x;kA , vkb vkj 1963 ,l lh 890 esa iyVk x;k , vkb vkj 1958 ,e ih 246] ¼2022½ 1 ,l lh lh 131] ¼2019½ 15 ,l lh lh 131] ¼2015½ 3 ,l lh lh 49] ¼2006½ 4 ,l lh lh 416] , vkb vkj 2020 ,l lh 2111] ¼2015½ 5 ,l lh lh 355] ¼2005½ 10 ,l lh lh 728] ¼2021½ 9 ,l lh lh 1 rFkk ¼2022½ 10 ,l lh lh 1 fufnZ"VA ¼iSjk 37 ,oa 38½

¼2½ lafonk vf/kfu;e] 1872 & /kkjk 31 rFkk 32 & lekfJr lafonk & vihykFkhZ mls lgefr foys[k fn, tkus ds v/;/khu lnSo djkj esa vkxs c<+us dks rS;kj ,oa jtkean Fkk & lgefr foys[k ugha fn;k x;k & rnqijkar rS;kjh vkSj jtkeanh rRoghu & e/;LFk us xyr vfHkfu/kkZfjr fd;k fd ;g lekfJr lafonk ugha Fkh & ;g lnSo fnoaxr johaæ ok?kekjs dh lgefr ij fuHkZj Fkh & ?kVuk vlaHko gks tk, rks ,slh lafonk 'kwU; gks tkrh gS & johaæ ok?kekjs dh e`R;q ds i'pkr~ vc mldh lgefr çkIr djuk vlaHko & bl vlaHkork ls lafonk 'kwU; ;k vçoZruh; gks tkrh gS & lafonk esa fofgr- ;k of.kZr Hkh- 'krZ vlaHko gks tkrh gS rks /kkjk 32 ds vuqlkj lafonk 'kwU; vkSj vçoZruh; gks tkrh gSA , vkb vkj 1963 ,l lh 890 esa iyVk x;k] , vkb vkj 1958 ,e ih 246 fufnZ"VA ¼iSjk 39 ,oa 40½

(1) Arbitration and Conciliation Act, 1996 -- S. 34 -- scope of power -- arbitration clause in agreement to sell that disputes between first and second party are liable to be adjudicated by two named arbitrators -- no dispute on issue of consent deed therefore it is beyond arbitration -- Arbitrator wrongly proceeded further by framing issue of whether these prospective vendors or their heirs can be allowed to refuse specific performance of contract on ground of defect or deficiency in their authority to sell property -- issue whether after death of Usha Waghmare or Ravindra Waghmare consent would not be required from their legal heirs also was never referred -- even, no issue was framed by Arbitrator whether consent of legal heirs of late Ravindra Waghmare is necessary or not -- Arbitrator wrongly recorded finding on issue that in absence of such consent by Ravindra Waghmare, agreement has not become inconclusive, uncertain or unenforceable. AIR 1958 MP 246 reversed in AIR 1963 SC 890, (2022) 1 SCC 131, (2019) 15 SCC 131, (2015) 3 SCC 49, (2006) 4 SCC 416, AIR 2020 SC 2111, (2015) 5 SCC 355, (2005) 10 SCC 728, (2021) 9 SCC 1 and (2022) 10 SCC 1 referred to. [Paras 37 & 38

(2) Contract Act, 1872 -- Ss. 31 and 32 -- contingent contract -- appellant was always ready and willing to go further into agreement subject to consent deed given to him -- no consent deed given -- further readiness and willingness immaterial -- Arbitrator wrongly held that it was not contingent contract -- it always depended on consent of late Ravindra Waghmare -- if event becomes impossible, such contract becomes void -- after death of Ravindra Waghmare, now impossible to get his consent -- this impossibility renders contract void or unenforceable -- if condition prescribed or even described in contract is impossible, contract becomes void and unenforceable in terms of S. 32. AIR 1958 MP 246 reversed in 1963 JLJ 523 = AIR 1963 SC 890 referred to. [Paras 39 & 40

ORDER

Rusia, J:- As the controversy involved in both these Arbitration Appeals is identical, therefore, same are being disposed of by this common order. For the sake of convenience, facts narrated in A.A. No.33/2020 (Apollo Real Estate LLP v. Dr. Arun Kumar Waghmare & others) are being taken into consideration.

1. The appellant has filed this appeal u/s.37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996” for short) read with section 13 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 challenging the validity of the order dated 9.10.2020 passed by the Commercial Court-VIIth Additional District Judge, Indore in MJC (AV) No.87/2018 whereby award dated 15.4.2018 and additional award dated 12.6.2018 passed by the sole Arbitrator (Hon’ble Justice N.K. Jain) have been set aside.

2. The facts which led to the filing of these appeals started after the date of passing of the judgment and decree dated 5.4.1982 in Civil Suit No.4-A/1982 [Vijay Waghmare Versus. Late Ramchandra Waghmare & others]. Late Ramchandra Waghmare was the owner of land bearing Surveys No. 360, 382 and 382/437 situated at Village Khajrani, Indore. Late Ramchandra Waghmare and late Smt. Usha Waghmare had four sons and a daughter viz. (i) Dr. Arun Waghmare, (ii) Prakash Waghmare, (iii) Vijay Waghmare,(iv) Ravindra Waghmare and daughter (v) Sunita Patankar. Vijay Waghmare filed the suit for declaration and partition of the aforesaid suit land against his father, brothers and sister. Defendants Nos. 1 to 4 viz. Ramchandra Waghmare, Dr. Arun Waghmare, Prakash Waghmare and Sunita Patankar admitted the claim of the plaintiff. Defendant No.5 – Ravindra Waghmare objected to it by submitting that there was a family partition conducted by Shri B.S. Jagirdar and apart from the suit land, land bearing Surveys No. 512 and 523 were also the self- acquired property of Late Ramchandra Waghmare. Late on Ravindra Waghmare however, agreed to the declaration of 1/6th share of each party. Learned Addl. District Judge decided Issue No.1 by holding that the land bearing Survey Nos. 512 and 523 are the property of a Joint Hindu family. By deciding the Issue No.2, learned Addl. District Judge held that the plaintiff and defendants have 1/6th – 1/6th share in the suit land. In view of the aforesaid findings, vide Judgment & Decree dated 5.4.1982 was passed in the suit, the operative part is as under :

“9. In view of my findings on the above issues,the plaintiff’s suit is decreed as follows :--

1) It is declared that between the plaintiff and defendants Khasra Plot No. 360, 382, 382/437 measuring 2.72 acres village Khajarani, Indore has been partitioned on 16.3.72 and the share allotted to the plaintiff is 16020 Sq.ft. Defendant No.1’s share is 15487 Sq.ft., defdt. No.2’s share is 14700 sq.ft., defendant 3’s share is 14700 sq.ft., defdt. 4’s share is 15174 sq.ft. and defdt. No.5’s share is 14700 sq.ft. as has been shown in the Map which shall form part of the decree.

2) It is further declared that the land left over for family charity and as shown in the annexed map is the joint family property of the plaintiff and defendant No. 1, 2, 4 and 5 and no one shall be entitled to transfer this portion of land.

3) It is further declared that as per the family partition the defendant . No.1 alone shall have the right to transfer the piece of land left for family charity.

4) It is further declared that as per the family partition neither of the party shall have the right to transfer his portion of land to any outsider except with the consent of the rest of the parties.

5) The plaintiff and defendants shall be entitled to get their names mutated in revenue records for their respective share.

6) In the circumstances of the case parties shall bear their own costs.”

3. As per the decree of the partition, the share in the land bearing Survey No. 367, 382 & 382/437 of the plaintiff and the defendants measure

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