SANDEEP KHANNA SOLE PROP. OF KRIPA OVERSEAS Vs. NATIONAL AGRICULTURAL CO-OPERATIVE MARKETING FEDERATION OF INDIA LTD.

JUDGEMENT

(1.) THESE are petitions under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter the Act) challenging the Award dated 24.4.2009 passed by the sole Arbitrator.

(2.) BY the impugned Award all that the Arbitrator has done is that he has given effect to a written settlement entered into between the parties which is dated 3.5.2007 and as modified by a subsequent order dated 4.4.2008 passed by this Court in a Criminal Writ Petition which was filed by one of the parties in a related matter seeking quashing of the FIR.

(3.) CRIMINAL proceedings were also initiated by the respondent and FIR Nos. 474/06 and 223/07 were got registered for offences under Sections 406, 420 read with Section 120B of IPC. In the meanwhile, talks of settlement were in progress and consequently, after exchange of a number of letters the proprietorship concerns on 3.5.07 forwarded to NAFED its proposal as regards the terms of settlement for all the pending disputes. Certain properties were also agreed to be kept as security/mortgage till repayment of the entire agreed amount. The family members of the sole proprietors Rajesh Khanna and Sandeep Khanna, who owned such properties ratified the terms of the settlement and agreed to be bound by the same. The terms of the settlement were accepted by NAFED and the parties thereafter entered into a deed of settlement on 3.5.2007. Pursuant to such settlement, when the criminal case was listed on 14.5.2007 in the Court of the Additional Sessions Judge, New Delhi where an application for grant of bail was pending, counsel for the parties and NAFED stated that compromise had taken place and consequently taking note of this development, the Additional Sessions Judge adjourned the application for bail with the direction that the applicants be not arrested in the meanwhile. To give effect to the settlement, two applications were filed in the Section 9 petition of NAFED . First application was for taking on record the terms of the settlement and the second application was for impleadment of the family members of Sh. Rajesh Khanna and Sh. Sandeep Khanna. The Learned Single Judge allowed the application for impleadment and recorded that the settlement was duly signed by the parties and ratified by both the sole proprietors and their family members who had also given their individual guarantees and undertakings for implementation of the settlement. The Learned Single Judge consequently recorded that the arbitration proceedings had become redundant and the O.M.P. was disposed of with liberty to move an appropriate application seeking implementation of the terms of the compromise. It may be noted that neither any decree nor any Award was passed in terms of the settlement.