23 July 2020

Arbitrator can pass an award directing specific performance of an agreement of sale

Point 3: This point becomes relevant because if the arbitrators cannot grant specific performance, a point can be raised under Section 34(2)(b)(i) that the subject matter of the dispute is not capable of arbitration. [Para No.35]

   One of the points raised in the grounds in this Court is that the grant of specific performance is discretionary and the discretion to grant or not to grant specific performance has been conferred by the Specific Relief Act, 1963 on the Civil Court and hence the arbitrator cannot be deemed to have been empowered to grant such a relief. [Para No.36]

    We may point out that the Punjab High Court in Laxmi Narayan vs. Raghubir Singh [AIR 1956 Punjab 249] the Bombay High Court in Fertiliser Corporation of India vs. Chemical Construction Corporation [ILR 1974 Bombay 856/858 (DB)] and the Calcutta High Court in Keventer Agro Ltd. vs. Seegram Comp. Ltd. [Apo 498 of 1997 & Apo 449 of (401)] (dated 27.1.98) have taken the view that an arbitrator can grant specific performance of a contract relating to immovable property under an award. No doubt, the Delhi High Court in M/s PNB Finance Limited vs. Shital Prasad Jain & Others [AIR 1991 Del. 13] has however held that the arbitrator cannot grant specific performance. The question arises as to which view is correct. [Para No.37]

Arbitrator can pass an award directing specific performance of an agreement of sale
   In our opinion, the view taken by the Punjab, Bombay and Calcutta High Courts is the correct one and the view taken by the Delhi High Court is not correct. We are of the view that the right to specific performance of an agreement of sale deals with contractual rights and it is certainly open to the parties to agree - with a view to shorten litigation in regular courts - to refer the issues relating to specific performance to arbitration. There is no prohibition in the Specific Relief Act, 1963 that issues relating to specific performance of contract relating to immovable property cannot be referred to arbitration. Nor is there such a prohibition contained in the Arbitration and Conciliation Act, 1996 as contrasted with Section 15 of the English Arbitration Act, 1950 or section 48(5)(b) of the English Arbitration Act, 1996 which contained a prohibition relating to specific performance of contracts concerning immoveable property. [Para No.38]

22 July 2020

Possibility of improvisation should be considered by Special Judge while deciding anticipatory bail in SC & ST Atrocity offences

When facts constituting atrocity are not mentioned in FIR but added in supplementary statement the it does not rule out possibility of improvisation.


   The important point that the learned Special Judge failed to consider is that, there is absolutely no mention in First Information Report of those facts which would attract offence under Atrocities Act. Those facts came to be mentioned in the supplementary statement. The possibility of improvisation should have been considered by the Special Judge. Definitely the ratio laid down in Prithviraj Chavan's case (Supra) is required to be considered and in the said case it has been observed thus, "10. Concerning the applicability of provisions of section 438 of Cr.P.C., it shall not apply tot he cases under Act of 1989. However, if the complaint does not make out a prima facie case for applicability of the provisions of the Act of 1989, the bar created by section 18 and 18A (I) shall not apply. We have clarified this aspect while deciding the review petitions "

Possibility of improvisation should be considered Special Judge while deciding anticipatory bail in SC & ST Atrocity offences
  Therefore, if we brush aside those allegations under the Atrocities Act, what remains is only the offences under Indian Penal Code and Information Technology Act. Those remaining allegations do not require physical custody of the appellant for the purpose of investigation. Time and again this Court is observing the approach of the Special Judges under the Atrocities Act, who are dealing with the bail applications. They are not considering the facts of the case in proper manner and only on the apparent allegations and especially without considering the ratio laid down in Prithviraj Chavan's case (Supra), just dismissing the bail applications, especially the pre-arrest bail applications holding that, there is bar under Section 18 of the Scheduled Castes and the Scheduled Tribes (Prevention of Atocities) Act, 1989. Time has again come to remind the Special Judges under the Atrocities Act that, they should consider the ratio laid down in Prithviraj Chavan's case (Supra) and other Judgments of Hon'ble Supreme Court and this Court in proper manner while dealing with the bail applications.[Para No.9]
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