R VEERAMANI Vs. NASEER KHALEELI

JUDGEMENT

(1.) We are dealing with a case involving an award passed by an unnamed Arbitrator appointed unilaterally against the consent of contesting parties, contrary to the arbitral agreement, seeking declaration against the parties, who were not parties to the document, which is in the nature of Agency-cum-contract and thus, not title. The award sets aside a sale deed of the year 2002 through a claim made based upon a Deed of Agency-cum-contract followed by Deeds of settlement, which according to the claimant, were forced on him. Incidentally, the award, while holding that vendors have acted bona fide in executing the sale deed, proceeds to set aside the same with liberty to the claimant to initiate civil and criminal proceedings as against the petitioners before this Court, arrayed as respondent Nos.5 and 6 being the subsequent purchasers, for appropriate relief including damages.

(2.) Factual MATRIX:-

(3.) The learned counsel appearing for the petitioners would submit that the deed of Agency dated 11.05.1994 did not create any title against the respondent No.1. The arbitration clause only speaks about the named Arbitrator. The petitioners were not party to the arbitration clause. They were not heard before the appointment of a new Arbitrator. The Arbitrator was not an impartial person as recorded by him in the award itself as he was a well wisher of both sides and familiar with the family affairs of late Dr.P.Maruthai Pillai. This does not include the petitioners. No opportunity was given to contest the matter on merits as the Award was passed on the same day without affording chance to file reply statement. No evidence was recorded along with exhibits marked. The petitioners seek to resurrect a stale claim. There cannot be a declaration to set aside the sale deed. The findings are mutually contrary and destructive qua the respondent No.6. before the Tribunal. Thus, the award has to be set aside.