Summary
The Court restored an arbitral award after rejecting the developer’s complaint that evidence and cross-examination had been denied. Both parties had expressly agreed to rely on affidavits and documents and dispense with cross-examination. The arbitrator had considered the claims, including construction expenditure, and no statutory setting-aside ground was established. Separately, invoking Article 142 in the peculiar circumstances, the Court directed the landowners to pay Rs 45 lakh in full settlement before resuming possession.
Issues
- Whether the agreed evidentiary procedure denied a fair opportunity to present the developer’s case.
- Whether the High Court exceeded the limits of arbitral-award review by remanding for reconsideration of claims already addressed.
Provisions considered
- Section 19, Arbitration and Conciliation Act, 1996Parties could agree on an evidentiary procedure using affidavits and documents without cross-examination. (¶¶ 11, 12, 13, 14)
- Section 34(2)(a)(iii), Arbitration and Conciliation Act, 1996The agreed procedure and absence of prejudice did not establish inability to present the case. (¶¶ 12, 13, 14, 15, 17)
Held
- The recorded procedural order reflected consent by parties and counsel to dispense with cross-examination. No timely recall or objection preceded the award, and the subsequent complaint could not undo the procedure accepted without demonstrated prejudice. (¶¶ 11, 12, 13, 14)
- The agreed issues had been addressed sequentially. The arbitrator expressly examined and rejected the construction-cost claim for inadequate reliable evidence, rather than overlooking it. The High Court’s remand did not rest on a ground within Section 34. (¶¶ 15, 16, 17)
- Although the award stood restored, the Court used Article 142 to end the long dispute on the particular facts, directing Rs 45 lakh in full settlement before the owners resumed possession. This was not a determination of actual expenditure or loss. (¶¶ 18, 19)
Result
Appeal disposed of. High Court remand order set aside and award dated 13 January 2010 restored. Appellants directed under Article 142 to pay respondent Rs 45 lakh in full quit of all claims within three months; immediately on payment they may resume possession and enjoy the land according to law. Parties to bear their own costs.