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2025 Supreme(Online)(SC) 400

SUPREME COURT OF INDIA
HON'BLE THE CHIEF JUSTICE, HON'BLE MR. JUSTICE SANJAY KUMAR, HON'BLE MR. JUSTICE K.V. VISWANATHAN
THE STATE OF UTTAR PRADESH – Appellant
Versus
R.K PANDEY – Respondent
C.A. No.-010212-010212 - 2014



Advocates:
Petitioner's Advocate: ANKIT GOEL
Respondent's Advocate: SHRISH KUMAR MISRA

An arbitration agreement is essential for valid arbitration proceedings; without it, any awards are null and void.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Execution of ex parte awards - Two ex parte awards issued in favor of Respondent No. 1 were set aside as null and void due to lack of an arbitration agreement and jurisdiction - The unilateral appointment of arbitrators by Respondent No. 1 was contrary to the arbitration clause. (Paras 20, 24, 25)

(B) Jurisdiction - The court emphasized that an arbitration agreement is essential for arbitration proceedings, and the absence of such an agreement renders any awards unenforceable. (Paras 20, 24)

Facts of the case:
Respondent No. 1, R.K. Pandey, claimed retirement at 60 years instead of 58, leading to arbitration proceedings based on a disputed agreement. The awards were challenged by the State Government on grounds of limitation and lack of jurisdiction.

Findings of Court:
The court found that the arbitration agreement was not valid, and the awards were issued without proper jurisdiction.

Issues: The main issues were the existence of the arbitration agreement and the validity of the ex parte awards.

Ratio Decidendi: The court ruled that the absence of a valid arbitration agreement nullifies the awards, emphasizing the necessity of party autonomy in arbitration.

Result: The appeal was allowed, and the ex parte awards were set aside.

Table of Content
1. respondent's claim for retirement age (Para 3 , 4 , 5)
2. respondent's reliance on service rules (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
3. existence of arbitration agreement questioned (Para 17 , 18 , 19 , 20 , 22 , 23 , 24)
4. absence of arbitration agreement nullifies awards (Para 21)
5. appeal allowed, awards set aside (Para 25)

J U D G M E N T

SANJIV KHANNA, CJI.

Delay condoned.

2. This appeal arises from an order dated 28.02.2012 passed by a Division Bench of the High Court of Judicature at Allahabad in First Appeal from Order Defective No. 352/2012.

3. The facts, in brief, are – Respondent no. 1, R.K. Pandey, was appointed as a Lab Assistant/ Technician in the T.B. Section of Dina Nath Parbati Bangla Infectious Disease , Hereinafter, “DNPBID.” Hospital located at Kanpur. The Municipal Board of Kanpur set up this hospital on the land given by the Kanpur Improvement Trust in 1944-45.

4. On 17.07.1956, DNPBID Hospital was taken over by the State Government, that is, the Government of Uttar Pradesh, to establish a new medical college at Kanpur pursuant to a Resolution dated 17.07.1956 passed by the Administrator of the Municipal Board of Kanpur and six members of the Board of the hospital. On 29.03.1957, the State Government accepted the proposal dated 17.07.1956.

5. On 20.06.1961, a transfer deed was executed between the Nagar Mahapalika of the City of Kanpur and the Governor of the State of Uttar Pradesh. The said deed has been placed on the record. It states that in terms of the G.O. dated 29.03.1957, the entire municipal staff of the hospital, as per the list attached to the indenture, will stand transferred to the State Government service. The staff will not be unfavourably placed as regards emoluments or other service conditions, nor shall they suffer in the matter of emoluments, leave, age of retirement, and other benefits as compared to the terms of service of the Board.

6. After the settlement was executed, the hospital became a unit of Ganesh Shanker Vidayarthi Memorial Medical, Hereinafter, “GVSM.” College, Kanpur. Thereupon, it is apparent that the employees working in DNPBID Hospital opted for service under the State Government and had sent their consent which was accepted. Thereafter, their service records were sent to the State Government. It was agreed that the concessions and privileges enjoyed by the staff before the aforesaid hospital were provincialized and will continue in future and they will not be put to a disadvantage by the take- over. The Board agreed to pay Rs.50,000/- keeping in view the liability of the Municipal Board.

7. Vide letter dated 09.01.1997, the Chief Medical Superintendent of the hospital, now a State Government hospital, informed Respondent No. 1, R.K. Pandey that he would be superannuating on 31.03.1997. He was requested to contact the office along with pension papers and submit the same within one week so that the process can be initiated.

8. In March 1997, Respondent No. 1, R.K. Pandey, filed a writ petition before the High Court of Judicature at Allahabad claiming that he should retire at the age of 60 years instead of 58 years, relying upon the service rules as applicable to the employees of the Municipal Board of Kanpur.

9. Pursuant to the filing of the writ petition, Respondent No.1, R.K. Pandey was directed to make a representation. While a representation was indeed made, it was subsequently rejected observing that the respondent had been in service of the State Government for 42 years and was availing all pay and allowances, as per the State Government rules.

10. The State Government filed an affidavit opposing the writ petition inter alia, stating that Respondent No. 1, R.K. Pandey, having acquired the status of State Government service was bound and governed by the rules and regulations of the State Government. It was also stated that the minimum age for entering the government service is 18 years, and if a government servant retires at the age of 58 years, h

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