IQBAL SINGH Vs. MAHENDER SINGH

JUDGEMENT

(1.) THIS suit is a suit for specific performance of an Agreement to Sell dated

(2.) 8.2004. The agreement to sell is for a plot which the defendant no.1 was to be allotted on account of acquisition of his land under the Land Acquisition Act, 1984. 2. Under the Agreement to Sell dated 2.8.2004 the plaintiff paid certain amounts and it is the case of the plaintiff that the defendant no.1 failed to perform his part of the contract, and therefore, in terms of an arbitration clause, the plaintiff way back in the year 2006 (as mentioned in para 13 of the plaint) invoked arbitration proceedings. It is during the pendency of the arbitration proceedings that the defendant no.1 is said to have transferred the suit property to the defendant no.2, and who is said to have further transferred the same to defendant no.3. The stage in the arbitration proceedings is that after filing of the claim petition, an interim order was sought under Section 9 of the Arbitration and Conciliation Act, 1996, which was granted, however, presently, the arbitration proceedings are said to be stayed on account of a petition which has been filed by the defendant no.1 on the ground that the arbitrator is biased.

(3.) AS per Section 21 of the Arbitration and Conciliation Act, 1996, arbitration proceedings commence on a date on which a request for the disputes to be referred to arbitration is received by the respondent. Once the arbitration proceedings commence, the suit property becomes sub-judice and any transfer during the pendency of the arbitration proceedings would be hit by Section 52 of the Transfer of Property Act, 1882. I may note that the provision of Section 21 of the Arbitration and Conciliation Act, 1996, and similar such provision in the earlier Act of 1940, exist inasmuch as whereas a court always exists, where legal proceedings can be immediately filed, the Arbitration Tribunal in certain cases have to be constituted before which proceedings cannot start. It is for this reason that the commencement of arbitration proceedings is taken from the date of receipt of the request by the respondent for commencement of arbitration proceedings, and after which, constitution of the Arbitration Tribunal may take time.