Dalbir Singh and Anr v. M/S Krisam Properties Pvt Ltd

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo o o o o o AToCHANDIGARHo o o o o o o o o o CR-5999-2022(O&M)o o o o o o RESERVEDoON:o06.03.2025o PRONOUNCEDoON:o22.04.2025o o o o o DalbiroSinghoandoAnothero o o o o ooo....Petitionerso o Versuso o o M/soKrisamoPropertiesoPrivateoLimited o o oooo.....Respondento o CORAM:o HON'BLEoMR.oJUSTICEoVIKRAMoAGGARWAL.o o o Arguedoby:o Mr.oAashishoChopra,oSenioroAdvocateowitho o o Mr.oKartikoGupta,oAdvocate,o o o Ms.oNitikaoSharma,oAdvocate,o o o Mr.oSumitoKumar,oAdvocateoando o o Ms.oAnanyaoSharma,oAdvocateoforotheopetitioners.o o o o Mr.oAmitoJhanji,oSenioroAdvocateowitho o o Mr.oAnimeshoSharma,oAdvocate,o o o Ms.oElisaoGupta,oAdvocate,o o o Mr.oShradhaoDeshmukh,oAdvocateo(onoVideooConferencing),o o o Mr.oAkshdeepoSinghoSidhu,oAdvocateoando o o Ms.oShuchioSodhi,oAdvocateoforotheorespondent.o o o o VIKRAMoAGGARWAL,oJo o o Theopetitionerso(DalbiroSinghoandoCharanjitoSingho@oCharanpal)o haveopreferredotheoinstantopetitionounderoArticleo227oofotheoConstitutionoofo Indiao assailingo theo ordero datedo 23.11.2022o (Annexureo P-26)o passedo byo theo Courto ofo learnedo Civilo Judgeo (Junioro Division),o Gurugramo video whicho theo applicationofiledobyo theorespondentounderoSectiono8oofotheoArbitrationoando ConciliationoAct,o1996o(hereinafteroreferredotooasotheo'1996oAct')ofororeferringo theomatterotooArbitrationowasoallowed.o

2.o o Aso iso evidento fromo theo voluminouso petition,o theo partieso areo engagedoinoanointenseolegaloconflictoforotheolastonumberoofoyears.oTheofacts,oaso statedoinotheoinstantopetition,oareothatotheopetitionersowereoownersoinopossessiono ofolandomeasuringo3oBighao13oBiswaocomprisedoinoKhasraoNo.446/1/1o(3-13)o situatedowithinotheorevenueoestateoofovillageoChakarpur,oTehsiloandoDistrictoVIKASgCHANDER CR-5999-2022o(O&M)o o -2-o o

Gurugram.oTheolandoisosaidotoobeotheoancestralopropertyoofotheopetitioners,o havingobeenoownedoandopossessedobyotheiroforefathersoforotheolastomoreothano 150oyears.oIno1997,olandomeasuringo8oBiswa-8oBiswansio(hereinafteroreferredo tooasotheo'initiallyoacquiredoland')ooutoofotheoaforesaidolandowasoacquiredoforo theoconstructionoofoaoroad.oThereafter,ofurtheroacquisitionoofolandomeasuringo2o Bighao 4o Biswao 12o Biswansio (hereinaftero referredo too aso theo 'subsequentlyo acquiredoland')otookoplace.oTheopetitionersowereoleftowitholandomeasuringo1o Bigha.oItoisotheocaseoofotheopetitionersothatotheyohaveo27.5o%oundividedoshareoino lando measuringo 3.25o acreso quao whicho ao licenseo hado beeno obtainedo byo theo respondento(M/soKrisamoPropertiesoPrivateoLimited).oItoisoalsootheocaseoofotheo petitionersothatotheyocontinuedotoobeoinopossessionoofotheoacquiredolandoandoaso such,otheyoareoinopossessionoofotheoentireolandoownedobyothemoasoisoevidento fromotheophotographso(AnnexuresoP-2otooP-4).o

2.1o o Ono17.07.2003,otheoHaryanaoShehrioVikasoPradhikarano(foroshorto 'HSVP')oexchangedotheosubsequentlyoacquiredolandowithotheorespondentoando pursuantothereto,olicenseoNo.85oofo2004odatedo21.07.2004owasograntedotootheo respondentoforotheodevelopmentoofoaocommercialocolonyoonolandomeasuringo

3.25oacresowhichoincludedotheosubsequentlyoacquiredoland.oItoisotheocaseoofotheo petitionersothatotheopossessionoofotheototaloacquiredolandowasoneverotakenoovero fromotheopetitionersoand,otherefore,oitowasonotohandedooverotootheorespondent.o

2.2o o CWPoNo.12573oofo2003ofiledobyotheopetitionersochallengingotheo acquisitionoofolandowasodismissedoono21.05.2004owhereafteroSLPoNo.12297oofo 2004o waso filed.oVideo orderodatedo22.07.2004,o theo Supremeo Courtoofo Indiao orderedo theo maintenanceo ofo statuso quoo aso regardso possessiono ando furthero orderedothatonoothirdopartyointerestowouldobeocreated.o

2.3o o DuringotheopendencyoofotheoSLP,oaoMemorandumoofoSettlemento VIKASgCHANDdERatedo07.02.2011owasoexecutedobetweenotheopartieso(AnnexureoP-5).oBroadly,o CR-5999-2022o(O&M)o o -3-o o

ito waso agreedo thato theo petitionerso possessedo right,o titleo ando interesto ino theo licensedolandotootheoextentoofo27.5o%oorowereoentitledotoo27.5o%oshareoinotheo saleoproceeds.oItowasoalsooagreedothatoaositeoplano(AnnexureoP-6)owouldobeo preparedoinorespectoofo1oBighaoofolandowhichoremainedoafteroacquisitionowhicho wouldocontinueotoobeounderotheoownershipoandopossessionoofotheopetitioners.o Uponoanoapplicationohavingobeenomovedobyotheopetitionersoforodisposaloofotheo SLPoinotermsoofotheoMemorandumoofoSettlement,otheosameowasodisposedoofo videoorderodatedo06.09.2011o(AnnexureoP-7).o

2.4o o Ito iso theo caseo ofo theo petitionerso thato theyo continuedo too beo ino possessionoofotheosubsequentlyoacquiredolandosinceotheositeoplanoasoagreedowaso notopreparedowhichowouldohaveoshowedotheoownershipoandopossessionoofotheo petitionersooverotheoremainingolandomeasuringo1oBigha.oItohasoalsoobeenostatedo thato eveno noo sucho siteo plano waso preparedo ato theo timeo ofo executiono ofo theo MemorandumoofoSettlementoand,otherefore,oisonotoaopartoofotheocertifiedocopyo ofotheoSLPoalsoo(AnnexureoP-8).o

2.5o o Ino2018,oitocameotootheonoticeoofotheopetitionersothatoaomutationo bearingo No.1588o hado beeno sanctionedo ono 08.08.2008o (Annexureo P-11)o ino favouroofoHSVPoreflectingoHSVPotoobeotheoowneroofotheosubsequentlyoacquiredo landoandotheopetitionersotoobeotheoowneroofolandomeasuringo1oBigha.oItoisotheo caseoofotheopetitionersothatothisomutationowasonotopossibleosinceoHSVPohado exchangedotheosubsequentlyoacquiredolandowithotheorespondentoino2003oitself.o Itoisotheocaseoofotheopetitionersothatothisomutationowasoneverobroughtotootheiro noticeowhenotheoMemorandumoofoSettlementodatedo07.02.2011owasoexecutedo andofurther,onoonoticeowasoservedouponotheopetitionersobeforeoeffectingotheo changesoinotheorevenueorecord.o

2.6o o Theo petitionerso filedo ao suito bearingo Civilo Suito No.4930o ofo VIKASgCHAND2ER018(AnnexureoP-12)ochallengingotheoaforesaidorevenueoentryoandoaccordinglyo CR-5999-2022o(O&M)o o -4-o o

seekingo ao declarationo witho consequentialo reliefo ofo permanento injunction.o AnotheroCiviloSuitobearingoCiviloSuitoNo.1755oofo2021(AnnexureoP-13)owaso filedobyotheopetitionersowhenotheyowereotriedotoobeoforciblyodispossessedoando theiroconstructionowasotriedotoobeodemolished.oItowouldobeoessentialotoomentiono hereothatotheopresentomatteroarisesooutoofoproceedingsoinoCiviloSuitoNo.4930oofo 2018.oAopetitionounderoSectiono9oofotheo1996oActo(AnnexureoP-15)owasoalsoo filedobyotheopetitionersoagainstotheorespondentoandooneoRajeshoKumaroGargo whichowasopartlyoallowedoono13.08.2021o(AnnexureoP-16)oandopartiesowereo directedo noto too alienateo theo disputedo lando ino anyo manner.o Stillo further,o ao petitionounderoSectiono11o(5)oofotheo1996oActo(AnnexureoP-17)ohadoalsoobeeno movedobyotheopetitionersoforotheoappointmentoofoaoSoleoArbitratoroquaotheo disputesoarisingooutoofotheoMemorandumoofoSettlementowhichowasostatedotoobeo pendingoatotheotimeoofofilingoofotheopresentorevisionopetition.o

2.7o o Thereoareootherodetailsoaboutotheoinjunctionsohavingobeenograntedo andosubsequentlyovacatedobutotheosameoareonotorelevantoforotheopurposeoofotheo decisionoofotheopresentorevisionopetition.o

2.8o o InoCiviloSuitoNo.4930oofo2018,oanoapplicationowasomovedobyotheo respondentounderoSectiono8oofotheo1996oActo(AnnexureoP-24)ofororeferringotheo partiesotooarbitration.oTheosameowasoopposedobyowayooforeplyo(AnnexureoP-25).oHowever,ovideotheoimpugnedoorderodatedo13.11.2022o(AnnexureoP-26),o theosaidoapplicationowasoallowed,oleadingotootheofilingoofotheopresentorevisiono petition.o

2.9o o Noticeoofomotionoinotheorevisionopetitionowasoissuedovideoordero datedo19.12.2022:o o "Applicationoofotheorespondent-defendantounderoSectiono8o ofotheoArbitrationoandoConciliationoAct,o1996,ohasobeenoallowedo andotheoPUNJABoANDoHARYANAoHIGHoCOURTopartiesohaveo beenodirectedotooapproachotheoArbitratorovideoimpugnedoordero CR-5999-2022o(O&M)o o -5-o o

datedo23.11.2022o(AnnexureoP-26),oagainstowhichoplaintiffsoareoino thisorevision.oo o Ito iso contendedo byo learnedo counselo thato learnedo Trialo Courtofelloinoerrorobyofailingotoonoticeothatotheoreliefosoughtobyo theopetitionersowasoregardingocorrectionoofotheorevenueorecordo ando partitiono ofo theo land,o whicho cannoto beo resolvedo byo theo Arbitrator.oo o ItoisofurtherointeroaliaocontendedoasoperoHaryanaoLando Revenueo Act,o 1887,o undero Sectiono 45o ifo ao persono considerso himselfoaggrievedoasotootheorightoofowhichoheoisoinopossessionobyo ano entryo ino recordo ofo rights,o heo mayo instituteo ao suito foro declarationobeforeotheoCiviloCourtsoonly.oo o Noticeoofomotionoforo08.05.2023.oo o Ino theo meantime,o statuso quoo regardingo theo propertyo ino disputeoshallobeomaintained."o o

3.o o Iohaveoheardolearnedocounseloforotheoparties.o

4.o o ExtensiveoargumentsowereoaddressedobyolearnedoSeniorocounselo representingotheopartiesostartingofromoreferenceotootheostatutoryoprovisions,otheo background,otheolawoonotheosubjectoandofinallyotheolegalityoofotheomatter.o

5.o o Ino soo faro aso theo petitionerso areo concerned,o ino essence,o theo argumentoisothatotheoissueoofochallengeotooaomutationoisonotoarbitrableoand,o therefore,o undero theo circumstances,o theo mattero cannoto beo referredo foro arbitration.o Learnedo Senioro counselo referredo too theo statutoryo provisionso vizo Sectionso 8,o 9o ando 11o ofo theo 1996o Act,o Sectiono 45o ofo theo Haryanao Lando RevenueoAct,o1887o(foroshorto'1887oAct')oetc.oReferenceowasomadeotootheo contentsoofotheoMemorandumoofoSettlement,otheoArbitrationoAgreement,otheo orderopassedobyotheoHon'bleoSupremeoCourtoofoIndia,otheocontentsoofotheoCivilo Suit,otheorelevantomutationoandotheolawoonotheosubject.oSpecificoreferenceowaso madeo too theo judgmentso ofo theo Supremeo Courto ofo Indiao ino theo caseso ofo 'SukanyaoHoldingso(P)oLtd.oVs.oJayeshoPandyaoandoAnother',o(2003)o5oSCCo 531,o'BoozoAllenoandoHamiltonoInc.oVs.oSBIoHomeoFinanceoLimitedoando CR-5999-2022o(O&M)o o -6-o o

Others',o(2011)o5oSCCo532oando'VidyaoDroliaoandoOthersoVs.oDurgaoTradingo Corporation',o(2021)o2oSCCo1apartofromootherojudgments.o

5.1o o Learnedo Senioro counselo submittedo thato ano applicationo undero Ordero1oRuleo10oCPComovedobyotheopetitionersotooimpleadoHSVPoasoaopartyo waso pendingo beforeo theo trialo Courto ando beforeo decidingo theo same,o theo applicationounderoSectiono8oofotheo1996oActowasodecided.oItowasosubmittedothato withouto decidingo theo applicationo foro impleadment,o theo applicationo undero Sectiono8oofotheo1996oActoshouldonotohaveobeenodecided.o

5.2o o ItowasosubmittedobyolearnedoSeniorocounselothatotheodisputeoino CiviloSuitoNo.4930oofo2018owouldonotobeocoveredounderotheoMemorandumoofo Settlement.o

5.3o o LearnedoSeniorocounselosubmittedothatotheoArbitratorowouldohaveo noojurisdictionotoogoointootheosaidoissueoandotheoonlyoremedyowasotoofileoaocivilo suit.oLearnedoSeniorocounseloalsooreferredotootheovariousoordersopassedobyo differentoCourtsofromotimeotootimeoinobothoCiviloSuitsoandootherolitigationso initiatedobyotheoparties.o

5.4o o LearnedoSeniorocounselosubmittedothatothoughoanoArbitratorohaso beenoappointedoonoanoapplicationohavingobeenomovedobyotheopetitioners,othereo wouldobeonoojurisdictionowithotheoArbitratorotoodecideotheoissueoofoaomutationo wronglyohavingobeenoeffectedoinofavouroofoHSVP.oo

5.5o o ItowasosubmittedothatoinotermsoofotheoprovisionsoofoSectiono45oofo theo1887oAct,oonlyoaocivilosuitowouldobeomaintainable.oHeofurtherosubmittedo thatotheoprayeroinotheocivilosuito(atoPageoNo.106oofotheopaperobook)owasoao prayeroinoremoandonotoinopersonamoand,otherefore,otheomatterowasonotoliableotoo beoreferredoforoarbitration.oo

6.o o Perocontra,olearnedoSeniorocounselorepresentingotheorespondento VIKASgCHANDvERehementlyo opposedo theo submissionso madeo byo learnedo Senioro counselo CR-5999-2022o(O&M)o o -7-o o

representingotheopetitioners.oInitiatingohisoarguments,olearnedocounseloreferredo too theo arbitrationo agreemento containedo ino theo Memorandumo ofo Settlemento (PageoNo.74oofotheopaperobook).oReferenceowasomadeotootheosuito(AnnexureoP-12),otheopleadingsothereinoespeciallyoinoparagraphso8,o9,o10oando11othereofo (Pageo No.102o ofo theo papero book).o Thereafter,o referenceo waso madeo too theo avermentso madeo ino theo petitiono movedo undero Sectiono 9o ofo theo 1996o Acto (AnnexureoP-15)oandoparagraphso12otoo15othereof.oItowasosubmittedothatotheo avermentsomadeoinotheopetitionofiledounderoSectiono9owereotheosameoasothoseo madeoinotheocivilosuit.oReferenceowasothenomadeotootheopetitionomovedoundero Sectiono11oofotheo1996oActo(PageoNo.183oofotheopaperobook).oReferenceowaso alsoomadeotootheocontentsothereofotoosubmitothatoinotheoSectiono11opetitionoalso,o avermentso aso regardso theo mutationo etc.o wereo made.o Ito waso submittedo thato arbitrationo proceedingso areo alreadyo goingo ono ando thato ino theo statemento ofo claimso(AnnexureoR-6)owithoCMoNo.18916oofo2023(avermentsoasoregardsotheo mutationo wereo madeo ino paragrapho 19),o avermentso aso regardso Civilo Suito No.4930o ofo 2018o wereo alsoo made.o Learnedo Senioro counselo submittedo thato underoClaimoNo.1,oaodeclarationowasosoughtothatotheoclaimantso(petitionerso herein)o beodeclaredoaso ownerso ino possessiono ofolando measuringo1.39o acreso comprisedo ino Khasrao No.446/1/1.o Learnedo Senioro counselo referredo too theo provisionsoofoSectiono45oofotheo1887oAct.oReferenceowasomadeotooChaptero6oofo theoSpecificoReliefoAct,o1963o(foroshorto'1963oAct').oLearnedoSeniorocounselo referredotootheoprovisionsoofoSectionso34oando35othereof.oReferenceowasomadeo tooChaptero4oofotheo1887oActowhichodealsowithorecords.oItowasosubmittedothato anyomatteroofowhichoanoentryoisotoobeomadeoinoanyorecordoororegisteroundero Chaptero4ocanoalsoobeoreferredoforoarbitration.oItowasofurtherosubmittedothato suitsofiledounderoSectionso34oando35oofotheo1963oActoareorightsoinopersonamo VIKASgCHANDaERndonotorightsoinorem.oo CR-5999-2022o(O&M)o o -8-o o

6.1o o Ito waso submittedo thato undero theo Memorandumo ofo Settlement,o thereowereoonlyotwoopartiesoandoevenoinotheosuit,othereowereotwoopartiesowhicho showsothatoitowasonotoanoactionoinoremobutoanoactionoinopersonam.oLearnedo Seniorocounseloalsooreferredotooallotheoordersopassedofromotimeotootimeoino variousolitigationsoinitiatedobyotheoparties,otheotermsoofotheoMemorandumoofo Settlementoincludingotheoarbitrationoagreement,otheocontentsoofotheocivilosuit,o theoapplicationounderoSectiono9,otheoapplicationounderoSectiono11,otheoclaimo statementomovedoinoarbitraloproceedingsoetc.oLearnedoSeniorocounseloreferredo tootheoimpugnedoorderoandosubmittedothatothereoisonooillegalityoinotheosaidoordero warrantingointerference.oItowasosubmittedothatoitoisonowowellosettledothatoeveno theoissueoofoarbitrabilityoisotoobeodecidedobyotheoArbitratoroandonotobyotheoCivilo Court.oInosupportoofohisocontentions,olearnedoSeniorocounseloplacedorelianceo uponotheojudgmentsopassedobyotheoSupremeoCourtoofoIndiaoinotheocasesoofo 'SushmaoShivkumaroDagaoMadhurkumaroRamkrishanjioBajaj',o2023oSCCo Onlineo SCo 1683,o 'Interplayo betweeno Arbitrationo Agreementso undero ArbitrationoandoConciliationoAct,o1996oandoStampoAct,o1899',o(2024)o6oSCCo 1,o 'Boozo Alleno ando Hamiltono Inc.o Vs.o SBIo Homeo Financeo Limitedo ando Others',o (2011)o 5o SCCo 532,o 'Deccano Papero Millso Companyo Limitedo Vs.o RegencyoMahaviroPropertiesoandoOthers',o(2021)o4oSCCo786ando'Olympuso SuperstructuresoPvt.oLtd.oVs.oMeenaoVijayoKhetanoandoOthers',o(1999)o5o SCCo651oasoalsootheojudgmentopassedobyotheoBombayoHighoCourtoinotheocaseo ofo'ParkashoCottonoMillsoPvt.oLtd.oVs.oVinodoTejrajoGowanioandoOthers',o

(2014)o4oAIRoBomoR1.o

7.o o Iohaveoconsideredotheosubmissionsomadeobyolearnedocounseloforo theo partieso ando haveo perusedo theo papero book.o Io haveo alsoo examinedo theo statutoryoprovisionsoandotheolawoonotheosubject.o VIKASgCHAND8ER.o o Beforeoadvertingotootheomeritsoofotheocase,oIodeemoitoappropriateo CR-5999-2022o(O&M)o o -9-o o

tooreferotootheorelevantostatutoryoprovisions.o

9.o o Sectiono8oofotheo1996oActolaysodownoasounder:o "8.oPowerotooreferopartiesotooarbitrationowhereothereoisoanoarbitrationo agreement:o o (1)oAojudicialoauthority,obeforeowhichoanoactionoisobroughtoinoao matterowhichoisotheosubjectoofoanoarbitrationoagreementoshall,oifoaopartyo tootheoarbitrationoagreementooroanyopersonoclaimingothroughooroundero him,osooappliesonotolaterothanotheodateoofosubmittingohisofirstostatemento onotheosubstanceoofotheodispute,othen,onotwithstandingoanyojudgment,o decreeooroorderoofotheoSupremeoCourtooroanyoCourt,oreferotheopartiesotoo arbitrationo unlesso ito findso thato primao facieo noo valido arbitrationo agreementoexists.o o (2)oTheo applicationo referredo too ino sub-sectiono (1)o shallo noto beo entertainedo unlesso ito iso accompaniedo byo theo originalo arbitrationo agreementooroaodulyocertifiedocopyothereof:oo o [Providedo thato whereo theo originalo arbitrationo agreemento oro ao certifiedo copyo thereofo iso noto availableo witho theo partyo applyingo foro referenceotooarbitrationounderosub-sectiono(1),oandotheosaidoagreemento orocertifiedocopyoisoretainedobyotheootheropartyotoothatoagreement,othen,o theopartyosooapplyingoshallofileosuchoapplicationoalongowithoaocopyoofotheo arbitrationoagreementoandoaopetitionoprayingotheoCourtotoocallouponotheo otheropartyotooproduceotheooriginaloarbitrationoagreementooroitsodulyo certifiedocopyobeforeothatoCourt.]oo o (3)oNotwithstandingothatoanoapplicationohasobeenomadeoundero sub-sectiono (1)o ando thato theo issueo iso pendingo beforeo theo judicialo authority,o ano arbitrationo mayo beo commencedo oro continuedo ando ano arbitraloawardomade.o o

10.o o Sectionso34oando35oofotheo1963oActoprovideoasounder:o "34.o Discretiono ofo courto aso too declarationo ofo statuso oro right:-o o Anyopersonoentitledotooanyolegalocharacter,oorotoo anyorightoasotooanyoproperty,omayoinstituteoaosuitoagainsto anyopersonodenying,oorointerestedotoodeny,ohisotitleotoosucho charactero oro right,o ando theo courto mayo ino itso discretiono makeothereinoaodeclarationothatoheoisosooentitled,oandotheo plaintiffoneedonotoinosuchosuitoaskoforoanyofurtherorelief:oo o Providedo thato noo courto shallo makeo anyo sucho declarationowhereotheoplaintiff,obeingoableotooseekofurthero reliefothanoaomereodeclarationoofotitle,oomitsotoodooso.o CR-5999-2022o(O&M)o o -10-o o

35.oEffectoofodeclaration:-o o AodeclarationomadeounderothisoChapteroisobindingo onlyoonotheopartiesotootheosuit,opersonsoclaimingothrougho themo respectively,o and,o whereo anyo ofo theo partieso areo trustees,oonotheopersonsoforowhom,oifoinoexistenceoatotheo dateoofotheodeclaration,osuchopartiesowouldobeotrustees."o o

11.o o Sectionso45oando127oofotheo1887oActoprovideoasounder:o "45.o Suito foro declaratoryo decreeo byo personso aggrievedo byo ano entryoinoaorecord.-o o Ifoanyopersonoconsidersohimselfoaggrievedoasotooanyorighto ofowhichoheoisoinotheopossessionobyoanoentryoinoaorecords-of-rightso oroinoanoannualorecord,oheomayoinstituteoaosuitoforoaodeclarationo ofohisorightounderoChapteroVIoofotheoSpecificoReliefoAct,o1877.o xxxo o o xxxo o o xxxo

127.oPowerotooreferotooarbitration:-o o (1)o Anyo Revenue-officero may,o witho theo consento ofo theo parties,oreferotooarbitrationoanyodisputeoarisingobeforeohimoinoanyo matterounderothisoAct.o o (2)o Ao Collectoro oro anyo Assistanto Collectoro ofo theo firsto gradeomay,owithoutotheoconsentoofotheopartiesoreferotooarbitrationo anyodisputeobeforeohimowithorespectotoo-o o (a)oanyomatteroofowhichoanoentryoisotoobeomadeoinoanyo recordoororegisterounderoChapteroIVo;o o (b)o anyo mattero relatingo too theo distributiono ofo ano assessmentounderosectiono56;o o (c)otheolimitsoofoanyoestateooroofoanyoholding,ofieldooroothero portionoofoanoestate;ooro o (d)otheopropertyotoobeodividedoatoaopartitionoorotheomodeo ofomakingoaopartition."o o

12.o o Comingotootheolawoonotheosubject,otheobasicojudgmentoonotheoissueo ofoarbitrabilityoofoaodisputeoisotheojudgmentoofotheoSupremeoCourtoofoIndiaoino theocaseoofo'BoozoAllenoandoHamiltonoInc.oVs.oSBIoHomeoFinanceoLimitedo andoOthers'o(supra)owhereinotheoscopeoandonatureoofotheoarbitrabilityoofoao disputeowasoexamined.oItowasoheldothatowhenoaosuitoisofiledobyooneoofotheo partieso too ano arbitrationo agreemento againsto theo othero partieso too theo saido agreementoandoifoanoapplicationounderoSectiono8oofotheo1996oActoisofiled,otheoVIKASgCHANDER CR-5999-2022o(O&M)o o -11-o o

Courtowouldohaveotoodecideofiveoquestions.oOnotheobasisoofotheocontentionso raisedobeforeotheoSupremeoCourtoofoIndia,otheoSupremeoCourtoofoIndiaoframedo fouroquestionsoforoitsoconsideration:o o "19.o Whereo ao suito iso filedo byo oneo ofo theo partieso too ano arbitrationoagreementoagainstotheootheropartiesotootheoarbitrationo agreement,o ando ifo theo defendantso fileo ano applicationo undero Sectiono 8o statingo thato theo partieso shouldo beo referredo too arbitration,otheocourto(judicialoauthority)owillohaveotoodecide:oo o (i)owhetherothereoisoanoarbitrationoagreementoamongotheo parties;oo o (ii)owhetheroallotheopartiesotootheosuitoareopartiesotootheo arbitrationoo o (iii)owhetherotheodisputesowhichoareotheosubject-matteroofo theosuitofallowithinotheoscopeoofoarbitrationoagreement;oo o (iv)owhetherotheodefendantohadoappliedounderoSectiono8oofo theoActobeforeosubmittingohisofirstostatementoonotheosubstanceoofo theodispute;oandoo o (v)owhetherotheoreliefsosoughtoinotheosuitoareothoseothatocano beoadjudicatedoandograntedoinoanoarbitration.oo o 20.oOnotheocontentionsourgedotheofollowingoquestionsoariseo foroouroconsideration:o

(i)oWhetherotheosubject-matteroofotheosuitofellowithinotheo scopeoofotheoarbitrationoagreementocontainedoinoClauseo(16)oofo theodepositoagreement?oo

(ii)o Whethero theo appellanto hado submittedo hiso firsto statemento ono theo substanceo ofo theo disputeo beforeo filingo theo applicationounderoSectiono8oofotheoAct?oo

(iii)oWhetherotheoapplicationounderoSectiono8owasoliableotoo beo rejectedo aso ito waso filedo nearlyo 20o monthso aftero enteringo appearanceoinotheosuit?oo

(iv)o Whethero theo subject-mattero ofo theo suito iso /arbitrable/,othatois,ocapableoofobeingoadjudicatedobyoaoprivateo forumo(ArbitraloTribunal);oandowhetherotheoHighoCourtooughtotoo haveoreferredotheopartiesotootheosuitotooarbitrationounderoSectiono 8oofotheoAct?o o

13.o o Ino theo presento matter,o weo wouldo primarilyo beo concernedo witho questionoNo.4oframedobyotheoSupremeoCourtoofoIndiaoandotheofindingsothereon:o o "32.o Theo natureo ando scopeo ofo issueso arisingo foroVIKASgCHANDER CR-5999-2022o(O&M)o o -12-o o

considerationoinoanoapplicationounderoSectiono11oofotheoActoforo appointmentoofoarbitrators,oareofaronarrowerothanothoseoarisingo inoanoapplicationounderoSectiono8oofotheoAct,oseekingoreferenceoofo theo partieso too ao suito too arbitration.o Whileo consideringo ano applicationounderoSectiono11oofotheoAct,otheoChiefoJusticeoorohiso designateowouldonotoembarkouponoanoexaminationoofotheoissueoofo /arbitrability/ooroappropriatenessoofoadjudicationobyoaoprivateo forum,oonceoheofindsothatothereowasoanoarbitrationoagreemento betweeno oro amongo theo parties,o ando wouldo leaveo theo issueo ofo arbitrabilityo foro theo decisiono ofo theo Arbitralo Tribunal.o Ifo theo arbitratoro wronglyo holdso thato theo disputeo iso arbitrable,o theo aggrievedopartyowillohaveotoochallengeotheoawardobyofilingoano applicationounderoSectiono34oofotheoAct,orelyingouponosub-sectiono

(2)(b)(i)oofothatosection.oo o 33.o Butowhereo theo issueo ofo/arbitrability/o ariseso ino theo contextoofoanoapplicationounderoSectiono8oofotheoActoinoaopendingo suit,oalloaspectsoofoarbitrabilityowillohaveotoobeodecidedobyotheo courtoseizedoofotheosuit,oandocannotobeoleftotootheodecisionoofotheo arbitrator.oEvenoifothereoisoanoarbitrationoagreementobetweenotheo parties,o ando eveno ifo theo disputeo iso coveredo byo theo arbitrationo agreement,otheocourtowhereotheocivilosuitoisopending,owillorefuseo anoaoapplicationounderoSectiono8oofotheoAct,otooreferotheopartiesotoo arbitration,o ifo theo subject-mattero ofo theo suito iso capableo ofo adjudicationoonlyobyoaopublicoforumoorotheoreliefoclaimedocano onlyobeograntedobyoaospecialocourtooroTribunal.oo o 34.o Theo termo /arbitrability/o haso differento meaningso ino differentocontexts.oTheothreeofacetsoofoarbitrability,orelatingotoo theojurisdictionoofotheoArbitraloTribunal,oareoasounder:oo o (i)oWhetherotheodisputesoareocapableoofoadjudicationoando settlementobyoarbitration?oThatois,owhetherotheodisputes,ohavingo regardo too theiro nature,o couldo beo resolvedo byo ao privateo forumo chosenobyotheopartieso(theoArbitraloTribunal)oorowhetherotheyo wouldoexclusivelyofallowithinotheodomainoofopublicoforao(courts).oo o (ii)oWhetherotheodisputesoareocoveredobyotheoarbitrationo agreement?oThatois,otheodisputesoareoenumeratedoorodescribedoino theo arbitrationo agreemento aso matterso too beo decidedo byo arbitrationo oro whethero theo disputeso fallo undero theo /exceptedo matters/o excludedo fromo theo purviewo ofo theo arbitrationo agreement.oo o (iii)o Whethero theo partieso haveo referredo theo disputeso too arbitration?oThatois,owhetherotheodisputesofallounderotheoscopeoofo CR-5999-2022o(O&M)o o -13-o o

theosubmissionotootheoArbitraloTribunal,oorowhetherotheyodoonoto ariseooutoofotheostatementoofoclaimoandotheocounterclaimofiledo beforeotheoArbitraloTribunal.oAodispute,oevenoifoitoisocapableoofo beingo decidedo byo arbitrationo ando fallingo withino theo scopeo ofo arbitrationo agreement,o willo noto beo /arbitrable/o ifo ito iso noto enumeratedoinotheojointolistoofodisputesoreferredotooarbitration,ooro inotheoabsenceoofosuchojointolistoofodisputes,odoesonotoformopartoofo theodisputesoraisedoinotheopleadingsobeforeotheoArbitraloTribunal.oo o 35.o Theo Arbitralo Tribunalso areo privateo forao choseno voluntarilyo byo theo partieso too theo dispute,o too adjudicateo theiro disputesoinoplaceoofocourtsoandotribunalsowhichoareopublicoforao constitutedo undero theo lawso ofo theo country.o Everyo civilo oro commercialo dispute,o eithero contractualo oro non-contractual,o whichocanobeodecidedobyoaocourt,oisoinoprincipleocapableoofobeingo adjudicatedoandoresolvedobyoarbitrationounlessotheojurisdictionoofo theo Arbitralo Tribunalso iso excludedo eithero expresslyo oro byo necessaryo implication.o Adjudicationo ofo certaino categorieso ofo proceedingsoareoreservedobyotheolegislatureoexclusivelyoforopublico forao aso ao mattero ofo publico policy.o Certaino othero categorieso ofo cases,othoughonotoexpresslyoreservedoforoadjudicationobyopublico forao(courtsoandotribunals),omayobyonecessaryoimplicationostando excludedofromotheopurviewoofoprivateofora.oConsequently,owhereo theo cause/disputeo iso inarbitrable,o theo courto whereo ao suito iso pending,o willo refuseo too refero theo partieso too arbitration,o undero Sectiono8oofotheoAct,oevenoifotheopartiesomightohaveoagreedoupono arbitrationoasotheoforumoforosettlementoofosuchodisputes.oo o 36.o Theo well-recognisedo exampleso ofo non-arbitrableo disputesoare:o(i)odisputesorelatingotoorightsoandoliabilitiesowhicho giveoriseotoooroariseooutoofocriminalooffences;o(ii)omatrimonialo disputeso relatingo too divorce,o judicialo separation,o restitutiono ofo conjugalo rights,o childo custody;o (iii)o guardianshipo matters;o (iv)o insolvencyo ando winding-upo matters;o (v)o testamentaryo matterso (granto ofo probate,o letterso ofo administrationo ando successiono certificate);o ando (vi)o evictiono oro tenancyo matterso governedo byo specialo statuteso whereo theo tenanto enjoyso statutoryo protectiono againsto evictiono ando onlyo theo specifiedo courtso areo conferredo jurisdictionotoograntoevictionoorodecideotheodisputes.oo o 37.o Ito mayo beo noticedo thato theo caseso referredo too aboveo relateotooactionsoinorem.oAo rightoinoremoisoaorightoexercisableo againsto theo worldo ato large,o aso contrastedo fromo ao righto ino personamowhichoisoanointerestoprotectedosolelyoagainstospecifico CR-5999-2022o(O&M)o o -14-o o

individuals.oActionsoinopersonamoreferotooactionsodeterminingotheo rightso ando interestso ofo theo partieso themselveso ino theo subject-mattero ofo theo case,o whereaso actionso ino remo refero too actionso determiningotheotitleotoopropertyoandotheorightsoofotheoparties,o notomerelyoamongothemselvesobutoalsooagainstoallopersonsoatoanyo timeoclaimingoanointerestoinothatoproperty.oCorrespondingly,oao judgmentoinopersonamorefersotooaojudgmentoagainstoaopersonoaso distinguishedofromoaojudgmentoagainstoaothing,orightoorostatuso andoaojudgmentoinoremorefersotooaojudgmentothatodeterminesotheo statusooroconditionoofopropertyowhichooperatesodirectlyoonotheo propertyoitself.o(VideoBlack'soLawoDictionary.)oo o 38.o Generallyo ando traditionallyo allo disputeso relatingo too rightsoinopersonamoareoconsideredotoobeoamenableotooarbitration;o ando allo disputeso relatingo too rightso ino remo areo requiredo too beo adjudicatedobyocourtsoandopublicotribunals,obeingounsuitedoforo privateoarbitration.oThisoisonotohoweveroaorigidooroinflexibleorule.o Disputesorelatingotoosubordinateorightsoinopersonamoarisingofromo rightsoinoremohaveoalwaysobeenoconsideredotoobeoarbitrable."o o

14.o o TheoaforesaidojudgmentowasoaffirmedobyotheojudgmentoofoaoThreeo Judgesobenchoinotheocaseoofo'VidyaoDroliaoandoOthersoVs.oDurgaoTradingo Corporation'o(supra).oAofourfoldotestowasolaidodownoforodeterminingowheno claimsoinoorosubjectomatteroofoaodisputeoareonotoarbitrable:o "76.oInoviewoofotheoaboveodiscussion,oweowouldolikeotoopropoundo aofourfoldotestoforodeterminingowhenotheosubject-matteroofoaodisputeoino anoarbitrationoagreementoisonotoarbitrable:o

76.1.o(1)oWhenocauseoofoactionoandosubject-matteroofotheodisputeo relatesotooactionsoinorem,othatodoonotopertainotoosubordinateorightsoino personamothatoariseofromorightsoinorem.o

76.2.o(2)oWhenocauseoofoactionoandosubject-matteroofotheodisputeo affectsothird-partyorights;ohaveoergaoomnesoeffect;orequireocentralisedo adjudication,oandomutualoadjudicationowouldonotobeoappropriateoando enforceable.o

76.3.o(3)oWhenocauseoofoactionoandosubject-matteroofotheodisputeo relatesotooinalienableosovereignoandopublicointerestofunctionsoofotheoStateo andohenceomutualoadjudicationowouldobeounenforceable.o

76.4.o(4)oWhenotheosubject-matteroofotheodisputeoisoexpresslyooro byonecessaryoimplicationonon-arbitrableoasoperomandatoryostatute(s).o CR-5999-2022o(O&M)o o -15-o o

76.5.oTheseotestsoareonotowatertightocompartments;otheyodovetailo ando overlap,o albeito wheno appliedo holisticallyo ando pragmaticallyo willo helpoandoassistoinodeterminingoandoascertainingowithogreatodegreeoofo certaintyowhenoasoperolawoinoIndia,oaodisputeoorosubject-matteroisonon-arbitrable.oOnlyowhenotheoansweroisoaffirmativeothatotheosubject-mattero ofotheodisputeowouldobeonon-arbitrable.o

76.6.oHowever,otheoaforesaidoprinciplesohaveotoobeoappliedowitho careo ando cautiono aso observedo ino Olympuso Superstructureso (P)o Ltd.:o (SCCop.o669,oparao35)."o o

15.o o TheoSupremeoCourtoofoIndiaoreturnedotheofollowingofindingso inoVidyaoDrolia'socaseo(supra):o "154.o Discussiono undero theo headingo /Whoo Decideso Arbitrability?/ocanobeocrystallisedoasounder:oo

154.1.o Ratioo ofo theo decisiono ino Patelo Engg.o Ltd.o ono theo scopeo ofo judicialo reviewo byo theo courto whileo decidingo ano applicationounderoSectionso8ooro11oofotheoArbitrationoAct,oposto theoamendmentsobyoActo3oofo2016o(withoretrospectiveoeffectofromo 23-10-2015)oandoevenopostotheoamendmentsovideoActo33oofo2019o (withoeffectofromo9-8-2019),oisonoolongeroapplicable.oo

154.2.o Scopeo ofo judicialo reviewo ando jurisdictiono ofo theo courtounderoSectionso8oando11oofotheoArbitrationoActoisoidenticalo butoextremelyolimitedoandorestricted.oo

154.3.o Theo generalo ruleo ando principle,o ino viewo ofo theo legislativeomandateoclearofromoActo3oofo2016oandoActo33oofo2019,o andotheoprincipleoofoseverabilityoandocompetence-competence,oiso thato theo Arbitralo Tribunalo iso theo preferredo firsto authorityo too determineo ando decideo allo questionso ofo non-arbitrability.o Theo courtohasobeenoconferredopoweroofo/secondolook/oonoaspectsoofo non-arbitrabilityopostotheoawardoinotermsoofosub-clauseso(i),o(ii)o oro(iv)oofoSectiono34(2)(a)oorosub-clauseo(i)oofoSectiono34(2)(b)oofo theoArbitrationoAct.oo

154.4.oRarelyoasoaodemurrerotheocourtomayointerfereoato Sectiono8ooro11ostageowhenoitoisomanifestlyoandoexofacieocertaino thato theo arbitrationo agreemento iso non-existent,o invalido oro theo disputesoareonon-arbitrable,othoughotheonatureoandofacetoofonon-arbitrabilityo would,o too someo extent,o determineo theo levelo ando natureoofojudicialoscrutiny.oTheorestrictedoandolimitedoreviewoiso toocheckoandoprotectopartiesofromobeingoforcedotooarbitrateowheno theomatteroisodemonstrablyo"non-arbitrable/oandotoocutooffotheo CR-5999-2022o(O&M)o o -16-o o

deadwood.oTheocourtobyodefaultowouldoreferotheomatterowheno contentionso relatingo too non-arbitrabilityo areo plainlyo arguable;o wheno considerationo ino summaryo proceedingso wouldo beo insufficientoandoinconclusive;owhenofactsoareocontested;owhenotheo partyo opposingo arbitrationo adoptso delayingo tacticso oro impairso conductoofoarbitrationoproceedings.oThisoisonototheostageoforotheo courtotooenterointooaominiotrialooroelaborateoreviewosooasotoousurpo theo jurisdictiono ofo theo Arbitralo Tribunalo buto too affirmo ando upholdo integrityo ando efficacyo ofo arbitrationo aso ano alternativeo disputeoresolutionomechanism.o o

16.o o Inotheocaseoofo'MagicoEyeoDevelopersoPrivateoLimitedoVsoGreeno Edgeo Infrastructureo Privateo Limitedo ando Others',o (2023)o 8o SCCo 50,o theo SupremeoCourtoofoIndiaowasoexaminingotheojurisdictionoofotheoreferraloCourtoato theopre-referralostage.oItowasoheldothatopre-referralojurisdictionoofotheoCourto undero Sectiono 11o (6)o ofo theo 1996o Acto iso veryo narrowo ando primarilyo twoo inquiriesohaveotoobeomade,otheoprimaryoinquiryobeingoaboutotheoexistenceoando validityoofoanoarbitrationoagreementoandotheosecondobeingowithorespectotoonon-arbitrabilityo ofo theo dispute.o Ito waso heldo thato ino soo faro aso theo firsto issueo iso concerned,oasotheosameogoesotootheorootoofotheomatter,otheosameohasotoobeo conclusivelyodecidedobyotheoreferraloCourtoatotheoreferralostageoitself.oHowever,o nooopinionowasoexpressedoasoregardsotheonon-arbitrabilityoofotheodispute.oTheo SupremeoCourtoofoIndiaoagainosummarizedotheolawoasoregardsonon-arbitrabilityo ofo ao disputeo ino theo caseo ofo 'Emaaro Indiao Limitedo Vs.o Taruno Aggarwalo Projectso LLPo andoAnother',o (2023)o 13o SCCo 661.o Relianceo waso primarilyo placedouponotheojudgmentoinoVidyaoDrolia'socaseoandoitowasoheldoasounder:o o "21.oInoVidyaoDrolia,oitoisospecificallyoobservedoandoheldo byothisoCourtothatorarelyoasoaodemurrer,otheoCourtomayointerfereo atoSectiono8ooro11ostageowhenoitoisomanifestlyoandoexofacieocertaino thato/theoarbitrationoagreementoisonon-existent,oinvalidoorotheo disputeso areo non-arbitrable/,o thougho theo natureo ando faceto ofo non-arbitrabilityowould,otoosomeoextent,odetermineotheoleveloando natureo ofo judicialo scrutiny.o Ito iso furthero observedo thato theo CR-5999-2022o(O&M)o o -17-o o

restrictedoandolimitedoreviewoisotoocheckoandoprotectopartiesofromo beingoforcedotooarbitrateowhenotheomatteroisodemonstrablyo/non-arbitrableoandotoocutooffotheodeadwood/.oItoisofurtheroobservedo thatotheoprimaofacieoreviewoatotheoreferenceostageoisotoocutotheo deadwoodo ando trimo offo theo sideo brancheso ino straightforwardo casesowhereodismissaloisobarefacedoandopellucidoandowhenoonotheo factsoandolawotheolitigationomustostopoatotheofirstostage.oo o 22.o Applyingo theo lawo laido downo byo thiso Courto ino theo aforesaido decisionso ando consideringo Clauseso 36o ando 37o ofo theo agreementoandowhenoaospecificopleaowasotakenothatotheodisputeo fallsowithinoClauseo36oandonotounderoClauseo37oandotherefore,otheo disputeoisonotoarbitrable,otheoHighoCourtowasoatoleastorequiredotoo holdo ao primaryo inquiry/reviewo ando primao facieo comeo too conclusionoonowhetherotheodisputeofallsounderoClauseo36ooronoto andowhetherotheodisputeoisoarbitrableooronot.oWithoutoholdingo suchoprimaryoinquiryoandodespiteohavingoobservedothatoaopartyo doesohaveoaorightotooseekoenforcementoofoagreementobeforeotheo courto ofo lawo aso pero Clauseo 36,o thereafter,o haso appointedo theo arbitratorso byo solelyo observingo thato theo sameo doeso noto baro settlementoofodisputesothroughotheoArbitrationoandoConciliationo Act,o 1996.o However,o theo Higho Courto haso noto appreciatedo ando consideredo theo facto thato ino caseo ofo disputeo aso mentionedo ino Clauseso3,o6oando9oforoenforcementoofotheoagreement,otheodisputeo isonotoarbitrableoatoall.oInothatoviewoofotheomatter,otheoimpugnedo judgmentoandoorderopassedobyotheoHighoCourtoappointingotheo arbitratorsoisounsustainableoandotheosameodeservesotoobeoquashedoo andosetoaside.oo o 23.oHowever,oatotheosameotime,oasotheoHighoCourtohasonoto heldo anyo preliminaryo inquiryo ono whethero theo disputeo iso arbitrableooronotoand/orowhetherotheodisputeofallsounderoClauseo 36ooronot,oweodeemoitoproperotooremitotheomatterotootheoHigho Courtotooholdoaopreliminaryoinquiryoonotheoaforesaidoinolightoofo theo observationso madeo byo thiso Courto ino Vidyao Droliao ando ino IndianoOiloCorpn.oandobotheoobservationsomadeohereinaboveoando thereafter,opassoanoappropriateoorder.oo o 24.oInoviewoofotheoaboveoandoforotheoreasonsostatedoaboveo theopresentoappealosucceeds.oTheoimpugnedojudgmentoandoordero passedobyotheoHighoCourtoappointingotheoarbitratorsoinotermsoofo Clauseo 37o ofo theo Addendumo Agreemento datedo 19-4-2011o iso herebyoquashedoandosetoaside.oTheomatteroisoremittedotootheoHigho CourtotoodecideotheoapplicationounderoSectionso11(5)oando(6)oofooo CR-5999-2022o(O&M)o o -18-o o

theoArbitrationoActoafreshoandotoopassoanoappropriateoorderoaftero holdingoaopreliminaryoinquiry/reviewoonowhetherotheodisputeoiso arbitrableooronotoand/orowhetherotheodisputeofallsowithinoClauseo 36oofotheoaddendumoagreementooronot.oo o 25.oTheopresentoappealoisoaccordinglyoallowed.oNoocosts."o o

17.o o Inotheocaseoofo'LombardioEngineeringoLimitedoVs.oUttarakhando JaloVidyutoNigamoLimited',o(2024)o4oSCCo341,oaoThreeoJudgeoBenchoofotheo SupremeoCourtoofoIndiaohasoaffirmedotheodecisionoinoVidyaoDrolia'socase:o o "29.oFollowingotheogeneraloruleoandotheoprincipleolaidodownoino VidyaoDrolia,othisoCourtohasoconsistentlyobeenoholdingothatotheoArbitralo Tribunaloiso theopreferredo firsto authorityo too determineo ando decideo allo questionsoofonon-arbitrability.oInoPravinoElectricalso(P)oLtd.ov.oGalaxyo Infrao&oEngg.o(P)oLtd.o14,oSanjivoPrakashov.oSeemao Kukreja15oando IndianoOiloCorpn.oLtd.ov.oNCCoLtd.o16.otheopartiesowereoreferredotoo arbitration,o aso theo primao facieo reviewo ino eacho ofo theseo caseso ono theo objectionoofonon-arbitrabilityowasofoundotoobeoinconclusive.oFollowingo theo exceptiono too theo generalo principleo thato theo Courto mayo noto refero partiesotooarbitrationowhenoitoisoclearothatotheocaseoisomanifestlyoandoexo facieonon-arbitrable,oinoBSNLov.oNorteloNetworkso(India)o(P)oLtd.o17,o Secunderabado Cantonmento Boardo v.o B.o Ramachandraiaho &o Sonso 18o andoBo&oTAGov.oUnionoofoIndia,oarbitrationowasorefusedoasotheoclaimsoofo theopartiesowereodemonstrablyotime-barred."o o

18.o o Itowouldoalsoobeoappositeotooreferotootheotermsoandoconditionsoofo theoMemorandumoofoSettlementoexecutedobetweenotheopartiesowhenotheomattero wasopendingobeforeotheoSupremeoCourtoofoIndiaoandotheoArbitrationoagreemento containedotherein:o MEMORANDUMoOFoSETTLEMENTo Thiso memorandumo ofo settlemento executedo ono 7tho dayo ofo February,o2011obetweenoo A.oDalbiroSinghoandoCharanjitoSinghoaliasoCharanpalobothosonso ofoSh.oSukhbiroSinghoR/oovillageoChakkarpur,oDistrictoGurgaono (hereinafteroreferredotooasoPartyoNo.o1);oandoo B.o Krisamo Propertieso Pvt.o Ltd.o Througho Mr.o P.D.o Goyal,o 11o AndndoLok,oNewoDelhioManagingoDirectoro(hereinafteroreferredo tooasoPartyoNo.2);oandoo C.oMr,oRakeshoKumaroGarg,oS/ooSh.oDevioDasoGarg,oR/ooG-15,o CR-5999-2022o(O&M)o o -19-o o

Maharanio Bagh,o Newo Delhio (hereinaftero referredo too aso Partyo No.3)o Andowhereasoo A.oTheopartyoNo.lowereotheooriginaloownersoofoagricultureolando comprisedo ino Khewato No.36,o Khatao No.45,o Khasrao Noo 446/1,o MINo ino 03o Bigha,o 04o Biswaso 12o Biswansi,o Khatao Tehsilo ando DistrictoGurgaon,oHaryana.oo B.oStateoofoHaryanaoissuedonotificationoNo.oLACo(G)oando97/455o u/s.o4oofoLandoAcquisitionoActoproposingotooacquireo2oBigha,o4o Biswa,o 12o Biswansio ofo Lando comprisedo ino Khewato No,o 35/32o KhataoNo.48,oKhasraoNo,o446/1/1osituatedoinotheorevenueoestateo ofoVillageoChakarpur,oTehsiloandoDistrictoGurgaon,oHaryana,oo C.o Theo Firsto Partyo too Agreemento challengedo theo notificationo datedou/so4oandoalsooaosubsequentonotificationodatedoissuedoundero Section-6oofoLandoAcquisitionoActobyowayoofobeingoWritoPetitiono No.o 12093o ofo 2000o whicho waso dismissedo aso withdrawno byo ano ordero datedo 24.1.2003o byo theo Higho Courto ofo Punjabo ando Haryana,o D.oDuringothisoperiodoonoaorepresentationoofoPartyoNo.2,oHudao transferredo theo lando measuringo 1.39o acres,o whicho Incidentallyo alsooformedopartoofotheolandowhichobelongotoopartyono.o1.oTheo partyono.o2owasodirectedotoosubmitotheolayooutoplanoofotheoareao furtherodevelopment.oo EoThatoHaryanaoUrbanoDevelopmentoAuthorityothereafteroonoano application,oasorevisedofromotimeotootimeograntedolicenseou/so3oofo HaryanaoDevelopmentoandoregulationoofourbanoareaoact,o1975o waso theo developmento ofo commercialo colonyo waso theo lando measuringo3.25oacresoandodulyosaidodownovariousootherotermsoforo theosaidolicenseoinoaccordanceowitholaw,o F.oTheopartyono.oIoatothisostageofiledoaowritopetitionobeingoCWPo No.o 12573o ofo 2003o challengingo botho theo notificationso undero Section-4oando6oofotheoLandoAcquisitionoActoinoHon/bleoHigho Courto ofo Punjabo ando Haryanao ato Chandigarho ando alsoo challengedoanoorderodatedo17.7.2003owherebyotheopartyono.o2owaso grantedotheosaidolandowhichowasoapprovedoanoexchangeoofoitso ownoland.oo G.oMeanwhileoM/soHudaoissuedoaoletterodatedo21.7.2004oorderingo thato theo lettero ofo intento datedo 20.8.2003o whicho waso kepto ino abeyance,o standso revivedo ando theo partyo no.2o waso directedo too depositoanoamountoofoRs.o1,62,50,000/-o(OneoCroreoSixtyoTwoolacso FiftyoThousandoonly)otowardsodifferentialoinolicenseofeeobesidesoao CR-5999-2022o(O&M)o o -20-o o

Banko Guaranteeo ofo Rs.6.76o lacso ono accounto ofo Externalo DevelopmentoChargeso(edc).oTheopartyoNo.2ocompliedowithotheo directiono ando Hudao consequentiallyo executedo ano agreemento datedo21.7.2004oinorespectoofotheosaidopropertyoInter-aliaowithotheo possessionoofotheosaidolandoforotheopurposeoofoconvertingoitointooao commercialocolony.oo H.oTheosaidowritopetitionoNo.o12573oofo2003owasocontestedobyotheo partyono.2oasowelloasoStateoofoHaryanaoandowasodismissedobyoao judgment/orderodatedo21.5.2004.oTheosaidojudgment/orderodatedo

21.5.2004oofotheoHighoCourtoofoPunjaboandoHaryanaowasofurthero challengedobeforeoHon'bleoSupremeoCourtoofoIndiaobyowayoofo SLPoNo.o12297oofo2004o(nowoCiviloAppealoNo.o12297oofo2004):o I.oTheoaboveomentionedoSLPobeingoSLPono.o12297oofo2004ocameo upo foro hearingo ono 22.07.2004.o Theo Hon'bleo Supremeo Courto passedotheofollowingoorder:-o "Issueonoticeoinotheospecialoleaveopetitionoasoalsooonotheoprayero forograntoofointerimorelief.oo Untilofurtheroorders,oitoisodirectedothatostatusoquooinotheomattero ofo possessiono shallo beo maintainedo ando noo thirdo partyo interesto shallobeocreated.oo Onoprayer,odastioserviceoisopermittedoinoaddition./oo TERMSoOFoSETTLEMENTo o Ino viewo ofo theo facto ando circumstanceso partieso too theo settlemento haveo mutuallyo ando amicablyo resolvedo allo theiro disputesoandodifferencesoandohaveosettledoamongstothemselvesoono theofollowingotermsoandoconditions:-o o a.oAllorights,otitle,ointerestoinotheosaidopropertyoando/oroofo theosaleoproceedsoofo(theosaidopropertyoshallobeosharedoamongsto allotheopartiesohereinoinotheomannerohereinafter.oo o i.oKrisamoPropertiesoPvt.oLtd.o(PartyoNo.2)o50o%oo o ii.o Dalbiro Singho ando Charanjito Singho aliaso Charanpal o Singho(PartyoNo.1)o27.5%oJointly.oo o iiioMr.oRakeshoKumaroGargo(PartyoNo.o3)o22.5%oo o b.oAlloexpensesorelatingotooconstructionoofoboundaryowall,o security,o maintenanceo and/oro anyo othero incidentalo expenseso ino furtheranceoofoupholdingoright,otitleoandointerestoofotheopartieso shalloalsoobeosharedoinotheosameoproportionoasostatedoinoPara.l c.oAllo theo partieso haveo alsoo agreedo withouto anyo demur,o protest,ovoluntarilyothatoallotheirodisputesoandodifferencesostando settledoandoconsequentiallyotheoaforesaidoSpecialoLeaveoPetitiono beingoSLPoNo.o12297otoo2004o(CiviloAppealoNo.12297oofo2004)o CR-5999-2022o(O&M)o o -21-o o

shallo beo withdrawno byo theo partyo No.1o unconditionally.o Ano appropriateoapplicationoforowithdrawaloshallobeofiledobyoPartyo No.o1.oo d.o Theo Partyo No.1o ando 3o haso alsoo institutedo civilo ando criminaloactionsowhichoareopendingoinoDistrictoCourtoGurgaono theoPartyoNo.1oando3oundertakesotoowithdrawoallotheoaforesaido casesowithino60odaysoofothisoagreement.oItoisoagreedothatonoocauseo ofoactionosurvivesotoocontinueowithotheocasesoasolistedobelow.oo

1.oDalbiroSinghoVsoNarendraoKumaroAgarwalo&oOtherso Criminalocaseo72/03.oo

2.oDilbiroSinghoVsoNarendraoKumaroAgarwaloCiviloCaseo 557/03oo

3.oUpvanoPropertiesoPvt.oLtd.oVsoDalbiroSingho&oOtherso Civilorecoveryosuitono.o179/05.oo

4.oUchitoPropertiesoPvt.oLtd.oVsoRaghubiroSingho&oOtherso 180/05oCivilorecoveryosuitono.o180/05.o e.Itoisostatedothatotheototaloapprovedoareaodatedo20.08.2003o grantedoinorespectoofo3.25oacresoofolandoinoSector-27,oGurgaon.oIto includeso1.39oacresoofolandoofopartyoNo.o1.oBalanceoti.85oacreso landoofopartyoNo.o2ooutoofolicenceowilloremainowithopartyoNo.o2.o PartyoNo.o1o&o3oWillohaveonooclaim,orightotitleooverotheobalanceo

0.85oacresolandobelongingotoopartyoNo.2.oo f.oItoisofurtheroagreeothatothereoexistedoti.625oacresoofolando whichoformopartoofotheokhasra446/1/1,oasoperopartyoNo.o1odidonoto formopartoofotheoacquisitionoandoisoalsoonotopartoofotheolicenseo datedo20.8.2003oinofavouroofopartyono.2.oItoisoagreedothatopartyo No.o1oshallocontinueotoohaveoalloright,otitleoandoInterestowhatevero itoholdsoonotheosaidoti.625oacresoasoalsooboundedoinoredotootheositeo plano(scheduleoA)otoothisoagreement.oPartyono.2oando3oshallohaveo notoanyoright,otitleoandointerestooverotheosaidoland.o g.oItoisoundertakenobyopartyoNo.o1othatoanoencroachmento onotheosmalloportionoofopropertyoshallobeoremovedoimmediatelyo onotheoexecutionoofothisoagreementosoothatotheopropertyocomesoino theo hando ofo theo partieso hereino absolutelyo ando withouto anyo encumbrancesoofoanyokindoandoinotheoproportionedomentionedo above.oo h.oAllotheopartiesotooagreementoshalloalsoomentionedobyo wayo ofo applicationo too theo Hon'bleo Courto foro appropriateo directionotooHudaotoonototoocountotheoperiodoofostatusoquooasoao parto ofo theo validityo periodo ofo theo licenseo soo aso too ensureo thato licenseoforodevelopmentoisoactivatedoforotheofurtherodevelopment.oo CR-5999-2022o(O&M)o o -22-o o

i.o Partyo No.3o willo arrangeo NOCo ino respecto ofo anyo agreemento madeo byo himo witho respecto too theo propertyo ifo any,o wheneverorequired.oo j.o Allo theo partieso agreeo thato theyo shallo executeo anyo additionalo oro furthero documento and/oro performo allo sucho actso whicho mayo beo necessaryo too givingo completeo effecto too thiso agreementoand/oroanyomatteroincidentalothereto.o k.oAllotheopartiesotooagreementowillostrictlyocomplyowitho agreementoandowillonotodeviateofromotermsoandoconditionosettledo inoMOU.oo l.o Ino caseo ofo anyo difference/dispute,o theo mattero willo beo referredo too soleo Arbitratoro appointedo byo theo Hon'bleo Chiefo JusticeoofoIndiaoinoaccordanceowithoArbitrationoandoConciliationo Act,o1996oasoamended."o o

19.o o Theoissueowhich,otherefore,oarisesoforoconsiderationobeforeothiso CourtoisoasotoowhetherotheochallengeotootheomutationoinofavouroofoHSVPocanobeo raisedobeforeotheoArbitratorooroisofilingoofoaocivilosuitotheoremedyoforotheosame.oo

20.o o Ino theo consideredo opiniono ofo thiso Court,o theo challengeo too theo mutationo cano veryo wello beo laido ino theo arbitrationo proceedingswhicho haveo alreadyocommencedoandothereowouldobeonoonecessityoofofilingoaocivilosuit,o especiallyo keepingo ino viewo theo facto thato thereo iso ano arbitrationo agreemento betweenotheoparties.oTheoreasonsoforoarrivingoatotheosaidoconclusionoareoaso under:o

20.1o o Theo partieso areo ino ao long-drawno litigationo aso regardso lando mentionedoinotheoopeningopartoofotheojudgment,otheodisputedolandobeingoaoparto ofotheosame.oAomemorandumoofosettlementowasoarrivedoatobetweenotheopartieso beforeo theo Supremeo Courto ofo Indiao ono 07.02.2011o ando variouso termso ando conditionsowereolaidodownowhichoareoevidentofromoaoperusaloofotheosame.oTheo memorandumo ofo settlemento dulyo mentionso abouto theo shareholdingo ofo theo petitioners,orespondentoandoSh.oRakeshoKumaroGarg.ooItoalsoomentionsothatoallo civiloandocriminaloactionsowouldobeowithdrawn.oDetailedoprovisionsohaveobeeno CR-5999-2022o(O&M)o o -23-o o

madeoinotheosaidomemorandumoaboutotheorightsoandointerestsoofotheopartiesotoo theo saido memorandum.o Theo memorandumo ofo settlemento alsoo containedo ano arbitrationoagreementoasoperowhichotheopartiesohadoagreedothatoallodisputeso wouldo beo referredo foro arbitration.oThato beingo so,o theo petitionerso cannoto beo permittedotoonowowriggleooutoofotheosame.oo

20.2o o TheopetitionersothemselvesopreferredoaopetitionounderoSectiono9oofo theo1996oAct.oTheyoalsoopreferredoaopetitionounderoSectiono11o(6)oofotheo1996o Acto foro theo appointmento ofo anoArbitratoro whicho waso dulyo allowed.o Ino allo petitionsovizotheopetitionounderoSectiono9oofotheo1996oAct,oSectiono11o(6)oofotheo 1996oAct,otheoclaimostatementofiledobeforeotheoArbitratoroandootheropetitions,o theodisputeoasoregardsotheomutationoinoquestionohasobeenoraised.oUnderotheo circumstances,oIodoonotoseeoasotoohowotheolearnedoArbitratorowouldonotohaveo theojurisdictionotoodealowithotheosame.oInotheoconsideredoopinionoofothisoCourt,o theolawoonotheosubjectoasoalsootheoprovisionsoofoSectiono16oofotheo1996oActo makeo ito manifestlyo clearothatotheoArbitratoro wouldohaveotheo jurisdictionotoo decideoaboutotheoarbitrabilityoofotheodisputeoasowell.oo

20.3o o Beothatoasoitomay,othisoCourtoisoofotheofurtheroconsideredoopiniono thatotheodisputeoinoquestionoisoaodisputeoinopersonamoandonotoaodisputeoinorem.o Itoisoessentiallyoaodisputeoasoregardsoaomutationoofoaoparceloofolandoinowhicho otheropartiesoareonotoconcernedonorowouldoitohaveoanyoeffectoonotheorightsoofo otheroparties.ooTheolandoinoquestionoisodulyoaopartoofotheoMemorandumoofo Settlementoandoallorightsoandointerestsoofotheopartiesotootheosaidomemorandumo wouldobeodeterminedoinoaccordanceowithotheotermsoandoconditionsolaidotherein.o Whenotheoexchangeoofolandoitselfoisoinoquestionoandotheomatteroisopendingo beforeotheoArbitrator,otheoconsequentialomutationowouldoalsoobeodecidedoino termsoofotheofindingsorecordedoasoregardsotheoexchangeoofotheoland.oThatobeingo VIKASgCHANDsEoR,otheofilingoofoaocivilosuitowouldonotobeopermissibleoandotheomatterowouldobeo CR-5999-2022o(O&M)o o -24-o o

liableotoobeoreferredoforoarbitration.oo

20.4o o Further,o Sectiono 127o ofo theo 1887o Acto itselfo provideso foro arbitration.o Onceothereo iso ao provisiono foro arbitrationo inotheoActoitself,oitoiso incomprehensibleoasotoowhyotheolearnedoArbitratorowouldonotobeoinoaopositiono toodecideotheoissue.o

20.5o o TheoSupremeoCourtoofoIndiaohasoclearlyolaidodownothatothereohaso toobeoveryolessointerferenceoatotheostageoofoSectiono11o(6)oandoSectiono8oofotheo 1996oActo especiallyo aftero theo amendmentso ofo 2015o ando 2019o whicho haveo minimizedotheoroleoofotheoCourts.o

20.6o o InotheoconsideredoopinionoofothisoCourt,otheopresentocaseodoesonoto clearotheofourfoldotestolaidobyotheoSupremeoCourtoofoIndiaoinoVidyaoDrolia'so caseoandobyonoostretchoofoimaginationocanoitobeosaidothatotheoissueoraisedoinotheo civilosuitoisomanifestlyonon-arbitrable.oo

20.7o o Theo learnedo trialo Courto rightlyo heldo thato tooupholdo theo object,o intento ando purposeo ofo theo 1996o Act,o theo interpretationo whicho favourso theo inclusionoofotheoActoshouldobeopreferredoinsteadoofotheointerpretation,owhicho oustsotheoapplicabilityoofotheoAct.oPartiesoshouldonotobeopermittedotooabuseotheo processoofolawobyoinstitutingomultipleolitigationsowithoaoviewotoofrustrateotheo settlementoarrivedoatobetweenothem.oo

20.8o o TheoSupremeoCourtoofoIndiaoonceoagainoconsideredotheoissueoino theocaseoofoSushmaoShivkumaroDagaoMadhurkumaroRamkrishanjioBajajo (supra).o Whileo referringo too theo judgmentso ino theo caseo ofo Boozo Alleno ando HamiltonoInc.oandoVidyaoDroliao(supra),otheoSupremeoCourtoofoIndiaoreferredo tootheoprovisionsoofoSectiono16oofotheo1996oActoandoheldothatoallojurisdictionalo issuesoincludingotheoexistenceoandotheovalidityoofoarbitrationoclauseocanobeo goneointoobyotheoArbitraloTribunal.ooItowasofurtheroheldothatoafterotheo2015o VIKASgCHANDaERmendment,oprimarilyotheoCourtoonlyohasotooseeowhetheroaovalidoarbitrationo CR-5999-2022o(O&M)o o -25-o o

agreementoexists.ooAdditionally,otheoclearonon-arbitrabilityoofocasesosuchoaso whereoaopartyotootheoagreementoisostatutorilyoprotectedohasoalsootoobeoseenobyo theoCourtoandoshortoofothisonarrowofield,otheoscopeoofojudicialoscrutinyoatotheo stageoofoSectiono11(6)ooroSectiono8oisoextremelyolimited.ooo o o Ito needso too beo mentionedo hereo thato theo learnedo trialo Courto erroneouslyorejectedotheoplaintounderoOrdero7oRuleo11(d)oCPC,owhereasonoo applicationounderoOrdero7oRuleo11oCPCohadobeenomovedoandotheoapplicationo movedowasoonlyounderoSectiono8oofotheo1996oAct.oooInoanyocase,omerelyostatingo thatotheoplaintowasobeingorejectedowouldonotobeoofoanyoconsequenceoonceotheo applicationo hado beeno movedo onlyo undero Sectiono 8o ofotheo 1996oAct.o oThiso aspectowasorequiredotoobeoclarified,ofor,oanoobjectionocouldohaveobeenoraisedo (thoughonotoraisedoduringotheocourseoofoarguments)othatosinceotheoplaintohado beenorejected,otheoonlyoremedyowasotoofileoanoappealoagainstotheoimpugnedo order.o o Theo ultimateo conclusiono whicho thiso Courto arriveso ato iso thato theo impugnedo ordero doeso noto suffero fromo anyo illegalityo oro jurisdictionalo erroro warrantingointerferenceobyothisoCourt.ooo

21.o o Thatobeingoso,otheopresentorevisionopetitionoisofoundotoobeoberefto ofomeritoandotheosameoisoaccordinglyodismissed.o o o o o o o o (VIKRAMoAGGARWAL)o o o o o o o o o JUDGEo Pronouncedoon:22.04.2025o PrinceoChawla/vcgargo Whetherospeaking/reasonedo Yes/Noo Whetheroreportableo o Yes/Noo o o