Union of India vs Smt. Urmila Devi and Others

P.P. Bhatt

Heard the learned counsel for the appellant as well as the learned counsel for the Respondents. Perused the papers.

The present first appeal is preferred against the Award published on 30th April, 2009 in Arbitration Case No. - 3 of 2008 by the sole Arbitrator U/s. 8(1)(B) of The Requisition & Acquisition of Immovable Property Act, 1952, whereby the leaned Arbitrator has awarded a sum of Rs. 2,38,81.236/- in favour of the claimant.

Having regard to the facts and circumstances of the matter and upon hearing the learned counsel for the appellant, the issue/point involved in the matter requires consideration. Hence, this appeal, being a first appeal is admitted for hearing.

The learned counsel for the parties have jointly requested that this first appeal be heard expeditiously as the point/issue involved in the matter is clearly covered by the judgment of the Hon''ble Apex Court.

Considering the request made by the learned counsel for the parties, put up this first appeal for final hearing in the month of April, 2013.

In the meantime, call for the L.C.R.

The present interlocutory application is for stay of the Award published on 30th April, 2009 in Arbitration Case No. - 3 of 2008, passed by the sole Arbitrator U/s 8(1)(B) of The Requisition & Acquisition of Immovable Property Act, 1952 till the disposal of the first appeal.

The learned counsel for the appellant/applicant submitted that many grounds have been raised by the appellant in the appeal such as the legality and validity of the Award in question and delay in raising objection. According to the learned counsel for the applicant, in fact, the Respondent has not submitted any objection in respect of the compensation determined by the competent authority.

Moreover, the Arbitrator has also awarded the amount claimed under the solatium and interest, which is not permissible under the Act. Therefore, according to learned counsel for the appellant Union of India there is a possibility of becoming successful in the appeal and therefore, by way of interim protection, the Award passed by the learned sole Arbitrator may be stayed.

As against that, the leaned counsel appearing for the Respondent/claimant vehemently submitted that the Award passed by the learned Arbitrator is in accordance with the provision of law and just compensation has been determined after careful consideration of the entire facts and circumstances of the case. The learned counsel appearing for the Respondent has also referred to and relied upon the judgment delivered in the case of Union of India through Union of India (UOI) Vs. Seneth Munda @ Seneth Kulla and Others, in support of his submission and pointed out that in similar set of circumstances, this Court has rejected the application for stay, preferred by the Union of India and the authorities concerned were directed to release the entire amount subject to certain conditions stated therein.

The learned counsel for the Respondent further submitted that in similar set of facts, the issue with regard to making Award under the head ''solatium'' and ''interest'' was also considered and awarded by the learned Arbitrator and the said order has been challenged by the Union of India and it has been upheld up to the level of the Hon''ble Apex Court.

Considering the aforesaid rival submissions and on perusal of the material on record and more particularly the Award passed in Arbitration Case No. - 3 of 2008, it appears that an area ad measuring about 168.71 acres of village Sidrol, Namkum, Ranchi has been acquired including claimant''s land under the provisions of The Requisition & Acquisition of Immovable Property Act, 1952. It further transpires that the opponent approached this Court by way of filing a writ petition and thereby the appointment of arbitrator was made and the arbitration proceedings were conducted. It appears that the Union of India has never challenged the order passed by this Court, challenging the appointment of the Arbitrator at a belated stage. In fact, it also appears that the Union of India has participated in the Arbitration proceedings, as it reveals from the Award passed by the learned Arbitrator. Since the learned Arbitrator has determined the compensation, the Union of India being aggrieved and dissatisfied by the said Award, preferred the first appeal on various grounds enumerated in the first appeal memo. Since the first appeal is admitted and final adjudication is awaited, interim arrangement is required to be worked out in a just manner, so that the interest of both the parties can be protected during the pendency of the first appeal.

Under the aforesaid circumstances, the following order is passed:-

The Union of India shall deposit 70 per cent of the awarded amount by making a fixed deposit in a Nationalized Bank initially for a period of one year which can be extended further if the appeal is not heard and finally disposed of, and the document regarding fixed deposit may be handed over to the Registry of this Court and the same shall be kept in a safe custody. So far as remaining 30 per cent of the awarded amount is concerned, the same shall be released in favour of the opponents on furnishing their personal bond.

I.A. Stands disposed of. Let a copy of this order be made available to the learned counsel for the parties.