Agreements involving government land, known to be illegal, are void ab initio, preventing claims for restitution by parties equally responsible for the illegality.

ORDER

This Arbitration Original Petition (Com.Div.) has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 [hereinafter referred as 'the Act'] challenging the award passed by the sole Arbitrator dated 18.03.2020.

2.The respondent is the claimant. The respondent which is the Church of South India Trust Association was looking for a place for having a burial ground for Christians in Chennai. At that point of time, two petitioners and one another person seem to have represented that they are in possession and enjoyment of the subject property in Survey No.145/1A, measuring to an extent of 20 acres and 37 cents at Thaiyur Village, Chengalpet Taluk, Kancheepuram District. The said lands were classified as ‘Meikkal Poramboke’. The respondent therefore entered into an agreement for sale dated 13.12.2012 with the petitioners for the purchase of the said property. The total sale consideration was fixed at Rs.1,35,00,000/- and an advance amount of Rs.60,00,000/- was paid to the petitioners and one another person. As per the sale agreement, the respondent is said to have been given possession of the property and they were informed that the petitioners were taking steps and coordinating with the Government authorities to obtain patta for the said property and that the property will be conveyed in favour of the respondent in a lawful manner.

3.In the meantime, a suit was also filed in OS.No.213/2010 before the District Munsif Court, Chengalpet, against the Government for obtaining patta.

4.Subsequently, a document having the nomenclature of a sale deed dated 21.5.2014 was executed by the petitioners in favour of the respondent and pursuant to the same, a further sale consideration of Rs.50,00,000/- was received. Thus, a total sum of Rs.1,10,00,000/- was received from the respondent.

5.The proceedings were initiated under the Tamil Nadu Land Encroachment Act, through notice dated 20.01.2015 and steps were taken by the Government to evict the occupants from the property. The respondent became aware of the fact that the Government was taking steps to allot the lands to the Indian Institute of Technology, Guindy. The eviction proceedings were completed and the Government took over possession of the lands and the lands were allotted to the Indian Institute of Technology, Guindy.

6.The respondent filed a complaint before the E8 Kelambakkam Police Station against the petitioners on the ground that they have been cheated and based on the compliant, an FIR came to be registered in Crime No.75 of 2016 for offence under Sections 420, 465, 467 and 468 IPC and the investigation was pending.

7.The respondent was seeking for the refund of the amounts received from them and such request was acted upon by one Paulraj, who is said to have refunded a sum of Rs.20,00,000/- to the respondent. The balance amount was not forthcoming from the petitioners.

8.As per the terms of the agreement, the respondent issued a notice dated 11.04.2017 and suggested for the appointment of an Arbitrator to resolve the dispute. Subsequently, OP.No.61 of 2018 was filed before this Court for appointment of an Arbitrator.

Accordingly, a sole Arbitrator was appointed by this Court.

9.The respondent filed claim petition seeking for the refund of a sum of Rs.90,00,000/- along with interest.

10.Even though, the claim petition was filed against three persons, since the third respondent in the claim petition had refunded the sum of Rs.20,00,000/-, the claim against the 3^rd respondent therein was given u