NARESH KUMAR Vs. NANAK CHAND

JUDGEMENT

(1.) LEGALITY , propriety and validity of the order dated 6.3.2006 passed by Additional District Judge, Faridabad declining to execute an award dated 15.1.2004 passed by the Arbitrator has been questioned, in the present Revision Petition by invoking superintending jurisdiction of this Hon'ble Court under Article 227 of the Constitution of India.

(2.) ADMITTED facts leading to the filing of the present revision petition are that Naresh Kumar, petitioner herein, entered into an agreement to sell dated 2.1.1996 with respondent No. 1 - Nanak Chand for the purchase of shop/plot No. 41 measuring 20 x 125 situated in New Anaj Mandi Ballabgarh, District Faridabad for a consideration of Rs. 45,000/ -. Entire sale consideration was paid through cheque and the possession of the property was also delivered to Naresh Kumar -Vendee by Nanak Chand - Vendor. Admittedly, no sale deed was executed for a considerable period of time. Naresh Kumar alleged that Nanak Chand is demanding additional amount for execution of the sale deed. The agreement to sell dated 2.1.1996 contained an arbitration clause which provides for reference of the dispute to the Arbitrator in the event of dispute between the parties. Parties entered into another agreement dated 20.12.2003 and Raj Kumar, respondent No. 2 herein was appointed as the Arbitrator and the parties referred their dispute to him in furtherance to the Arbitration Clause in the original agreement to sell dated 2.1.1996. The Arbitrator, so appointed, entered upon the reference. Nanak Chand - respondent No. 1 appeared before the Arbitrator and admitted entire claim of petitioner - Naresh Kumar which resulted in passing of the arbitral award dated 15.1.2004 by Raj Kumar, Arbitrator. The Arbitrator directed the vendor -Nanak Chand to execute and obtain registration of the sale deed with respect to the shop/plot in dispute.

(3.) BEFORE dealing with the question of legality and validity of the impugned order, I deem it appropriate to notice the Scheme of the Act which is relevant for the purposes of decision of the present petition. As is evident from the Preamble of the Act. The Act was enacted to consolidate the law relating to domestic arbitration, international arbitration, commercial arbitration etc. Arbitration agreement is defined under Section 7 of the Act whereas Section 11 deals with the appointment of Arbitrator. Jurisdiction and competence of the Arbitral Tribunal can be challenged by adopting procedure provided under Section 13 and on existence of one or more grounds specified under Section 12. Section 16 deals with the competence of Arbitral Tribunal to rule on its jurisdiction. Chapter V of the Act deals with the conduct of arbitral proceedings, whereas Chapter VI deals with the making of arbitral award and termination of proceedings. Chapter VII provides for the procedure and the basis for setting aside arbitral award, whereas Chapter VIII deals with the finality and enforcement of arbitral award. Section 4 of the Act deals with the waiver of right to object. For the purposes of convenience, relevant provisions/extract of Sections 4, 11, 16, 34, 35 and 36 are reproduced herein below: