Sunday, October 29, 2023

Arbitration application

 

IN THE COURT OF HON’BLE DISTRICT JUDGE, FIROZABAD

Arbitration Case No.                      Of 2014

Bare Lal aged about 45 year s/o Sri Nirottam Singh r/o Village Prempur Repura, Tehasil and District Firozabad.    ……………………………….Applicant

V/S

1.     The Arbitrator/Commissioner Agra Division, Agra;

2.     Union of India, Railway Ministry, Government of India through Chief Secretary, New Delhi;

3.     Dedicated Freight Corridor Corporation of India Ltd., New Delhi through its Project Manager;

4.     The Competent Authority (Land Acquisition D. F. C. C. I. Limited), City Magistrate, Firozabad;

5.     The District Magistrate, Firozabad.

..……………………Opposite Parties

The Competent Authority has fixed the compensation of Rs. 292128.00 so the required Court Fee of Rs. 200.00 is paid.

Application Under Section 34 (2) of Arbitration and Conciliation Act, 1996 against the Arbitral Award dated 20.11.2013 passed in Arbitration Reference No. 15 of 2013 (Bare Lal V/s Dedicated Freight Corridor Corporation of India Ltd. and Others) disposing the arbitration reference of the applicant. Feeling aggrieved against the aforesaid arbitral award, the applicant prefers this application for setting aside the arbitral award Dated 20.11.2013.

Sir,

The Applicant begs to prefer this application on the following amongst various other grounds: -

BRIEF FACTS OF THE CASE

1.     That the Applicant is the CO-SANKRAMARHYA BHUMIDHAR of 1/9th share in the land of Khata No. 00216 (Fasli Year 1419-1424), Gata No. 437/2 area 2.6270 hectare and Gata No. 434 area 1.3170 hectare situated at Mauja Prempur Repura, Tehasil and District Firozabad. In the land of Gata No. 437/2 three tree of neem and one tree of babool and in the land of Gata No. 434 twelve tree of babool, five tree of neem and one tree of siras are standing. The name of the Applicant is recorded in the revenue records.

2.     That the Central Government declared its intention by issuing a notification under section 20 A (1) of the Railways Act, 1989 in the official Gazette for the requirement of land for execution of a special railway project. This notification was the culmination of the satisfaction of the Central Government to the effect that certain land intended to be acquired for the purpose of laying another railway line.

3.     That thereafter the Central Government issued a declaration which was published on 27.11.2010 and 13.03.2011 in the local newspapers ‘Amar Ujala’ and ‘Dainik Jagaran’ for the acquirement of 0.3560 hectare area from the land of Gata No. 437/2 (Total area 2.6270 hectare) and 0.3120 hectare area from the land of Gata No. 434 (Total area 1.3170 hectare) for the construction of new railway line. In this publication the published area from the Gata No. 437/2 was shown 0.3560 hectare and acquired area was shown 0. 3560 hectare and from the Gata No. 434 the published area was shown 0.3120 hectare and acquired area was shown 0. 3120 hectare.

4.     That as such the applicant is the SANKRAMARHYA BHUMIDHAR of 1/9th share so the acquired area of the applicant by the opposite parties is 0.0395 hectare land from the Khasra No. 437/2 and 0.0347 hectare land from the Khasra No. 434.

5.     That by circulating the above said notification, the objections were invited from the effected persons consequently the applicant and other inhabitants of affected area filed their objection before the Opposite Party No. 4, the Competent Authority (Land Acquisition Dedicated Freight Corridor Corporation of India Ltd.), City Magistrate, Firozabad raising the following points: -

A.    The inhabitants of area are earning their income from the lands if their lands be acquired by authority, they should suffer the problem of unemployment;

B.     At least one member of the affected family shall be given a service in the railway department; and

C.     The inhabitants of area shall suffer an irreparable loss so they should be compensating with high award.    

6.     That in furtherance of process of acquirement of land the Competent Authority (Land Acquisition D. F. C. C. I. Limited), City Magistrate, Firozabad sent notice to the applicant for the submission of required documents to get the award and in pursuance of notice; the applicant submitted the required documents with the Competent Authority.

7.     That the authorities, the opposite party no. 2, 3, 4 and 5 determined the amount of compensation @ Rs. 710.00 for the land of Khasara No. 437/2 and @ Rs. 444.33 for the land of Khasara No. 434 per square meter. The authorities determined the amount of compensation Rs. 2,92,128.00 (Rs. 2,92,093.57 for land + Rs. 34.60 for trees) for the share of applicant in the land of Khasara No. 437/2 and Rs. 2,66,832.00 (Rs. 1,54,128.00 for land + Rs. 92,476 as Solace @ 60% + Rs. 227.44 for trees + Rs. 20,000.00 as the amount of ex gratia) for the share of applicant in the land of Khasara No. 434. This amount was meager and scant according to the norms and rules framed by the Government for making award to the aggrieved persons despite higher rate of value of land and goodwill in the locality.

8.     That the order for determination of the amount was allegedly made by the Competent Authority but no notice to the applicant for making of the award was given. The applicant was never afforded the opportunity of being heard at the time of fixation of market price.

9.     That the amount determined by the competent authority in its award was not acceptable to the applicant but he received the amount of award under protest and filed Arbitration Reference / Objection No. 15 of 2013 Bare Lal V/s Railway Pariyojana Eastern Dedicated Freight Corridor Corporation of India Ltd. before the arbitrator. The Learned Arbitrator vide its arbitral award dated 20.11.2013 dismissed the said reference in arbitrary manner overlooking the substantive law and public policy.

10.                        That the land in question was labeled land at all the relevant times and suitable for residential and commercial purposes much before the time of first notification under section 20 A (1) of the Railway Act i. e., on 27.11.2010. The market value was determined by the Competent Authority (Land Acquisition D. F. C. C. I. Limited), City Magistrate, Firozabad much low than the actual market value of the land prevailing at the time of the first notification.

11.                        That the land in question was most valuable land at the time of the first notification under section 20 A (1) of the Railway Act, 1989. The land is also having all the amenities of the modern life as Electricity, water, school, bank, transport, petrol pump, etc. and the land is situated at the main road from where every possible approach can be made.

12.                        That the Competent Authority (Land Acquisition D. F. C. C. I. Limited), City Magistrate, Firozabad has illegally and erroneously determined the market value of land in question under section 20 (F) of the Railway Act, 1989. The amount of compensation award is too much meager, less and inadequate. The Competent Authority determined the market value of the property in the most discriminatory and arbitrarily manner because circle rate fixed by the Government to take the Stamp fees for this area is Rs. 3200.00 per square meter and sale deed are also available for the amount of more than 10,000.00 per square meter. But the Competent Authority has taken different criteria to determine the market value of the said land that shows clear discrimination and arbitrariness. The Competent Authority ought to has determined its market value not less than Rs. 10,000.00 per square meter.

13.                        That the provisions of the National Rehabilitation and Resettlement Policy, 2007 for project affected families, notified by the Government of India in the Ministry of Rural Development vide number F.26011/4/2007-LRD, dated 31 October, 2007, shall apply in respect of acquisition of land by the Central Government in the matter of applicant.

14.                        That the applicant is legally entitled to get Rs. 66,05,600.00 (Rs. 41,08,500.00 for land + Rs. 24,65,100.00 as Solace @ 60% + Rs. 2000.00 for trees + Rs. 30,000.00 as the amount of ex gratia) for the share of applicant in the land of Khasara No. 437/2 and Rs. 55,74,920.00 (Rs. 34,68,700.00 for land + Rs. 20,81,220.00 as Solace @ 60% + Rs. 5000.00 for trees + Rs. 20,000.00 as the amount of ex gratia) for the share of applicant in the land of Khasara No. 434.

15.                        That the said award awarded by the arbitrator is against the public policy, natural justice and law and is liable to be set aside on the following amongst various other grounds:

GROUNDS

16.                        That the Arbitral Award of the Learned Arbitrator/Commissioner Agra Division, Agra is against weight of evidence and is bad in law.

17.                        That the Learned Arbitrator/Commissioner Agra Division, Agra has failed to appreciate the facts of case and came to a contrary conclusion on unfounded allegations.

18.                        That the Learned Arbitrator/Commissioner Agra Division, Agra has failed to appreciate the provisions of the National Rehabilitation and Resettlement Policy, 2007 for project affected families, notified by the Government of India in the Ministry of Rural Development vide number F.26011/4/2007-LRD, dated the 31st October, 2007, which shall apply in respect of acquisition of land by the Central Government in the matter of applicant as provided u/s 20-O of Railways Act, 1989.

19.                        That the appointment of arbitrator is made by the Central Government under section 20 (F) of the Railway Act, 1989 that is violation of Sections 7, 10 and 11 of the Arbitration and Conciliation Act, 1996.

20.                        That the Executive Officer is appointed as arbitrator rather than a Judicial Officer that is against the natural justice and as a result the Learned Arbitrator/Commissioner Agra Division, Agra acted in a dictator manner and has over looked the provisions of Act and principles of justice.

21.                         That the acquisition of the land is made under the Railway Act, 1989 and in this Act it is specifically provided under section 20 (N) that the provisions of Land Acquisition Act are not applicable but in the arbitral award for computing the market value of the property has been computed on the notification issued under the land Acquisition Act. Thus the computation of market price of the property is violation of Substantive law and procedure.

22.                        That the joint measurement of property is not made in presence of the applicant. The alleged joint measurement report is not served on this applicant for calling objections to it. For seeing such illegal one sided measurement the acquiring authority has fixed the award illegally without giving opportunity to file such objections.

23.                        That the valid objections regarding valuation methods adopted in the preliminary stage itself is ignored and the valuation is not made properly without observing ground reality and the loss incurred by the applicants in the award passed by the acquisition authority. Section 20-G of the Railways Act makes the provision of criterion for determination of market value of land as specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area where the land is situated but the acquisition authority did not consider the valuation list issued by Collector, Firozabad.

24.                        That the initial valuation made by acquiring body is drastically reduced to meager amount despite higher rate of value of land and goodwill in the locality. The suggested aspects in the objection are overlooked due to political pressures in the case. The applicant vehemently protest the rate of compensation adopted and calculated without appreciating the objection.

25.                        That the objections regarding valuation proposed at initial stages were promised to be taken into account during award enquiry and such aspects were ignored during award enquiry. The objections raised during award enquiry is overlooked and has not taken into account despite the documents are available with acquiring local authority.

26.                        That the value adopted is highly arbitrary and not with ground reality. The land rates have jumped 6 to 10 times from 2012 due to demand in real estate investments. The Railway station and Fatehabad bus stand is nearby, the vegetable market is nearby, the Government Hospital is nearby, the area is fully developed and no need of further development. The good will established by the applicant is of period of approximate 20 year, under all such circumstances and our valid objections the ground reality is being ignored to fix land value.

27.                        The authorities are speaking of rehabilitation of effected persons, when there is plan for rehabilitation of persons why such rehabilitation package is not there for us, such things shows ill will of authorities for questioning their illegal efforts in civil courts.

28.                        That the learned Arbitrator has overlooked the material facts and provisions of law and thus has reached a contrary view.

29.                        That the learned Arbitrator has failed to appreciate the evidence on record filed by the applicant and thus reached a contrary view.

30.                        That the learned Arbitrator has failed to appreciate the fact that the applicant is entitled to receive the solace @ 60% of the market value of the land.

31.                        That the learned Arbitrator has failed to appreciate the fact that the applicant is entitled to receive additional amount @ 12% of the market value in terms of Railways Act.

32.                        That the Arbitral Award of the learned Arbitrator is otherwise bad in law and deserves to be set aside and the arbitral reference be allowed in totality.

33.                        That the learned Arbitrator has failed to appreciate the fact that the amount determined for award is very low and should not be less than Rs. 10,000.00 per square meter.

PRAYER

It is, therefore, prayed that the Application may be allowed with cost and the Arbitral Award dated 20.11.2013 passed in Arbitration Reference No. 15 of 2013 (Bare Lal V/s Dedicated Freight Corridor Corporation of India Ltd. and Others) be set aside and the arbitral reference be allowed with cost.

Dated:                                                                                   APPLICANT

VERIFICATION: - Verified that the content of paragraph No. 01 to 33 of this arbitration application is base on the personal knowledge and on the legal advice given to me and I believe to this advice to be true and correct.

            Verified on this       day of            January, 2014 at District & Sessions Court Compound, Firozabad.                                                            

THROUGH

  

         ADVOCATE

THE UNCLAIMED DEPOSITS ACT 1866

 

1*[THE UNCLAIMED DEPOSITS ACT, 1866]

ACT No. 25 OF 1866

 

An Act  to transfer  to the Government of India certain securities and

moneys deposited  in the  High Courts  of Judicature  at Fort William,

Madras and Bombay 2***.

                                                   [11th July, 1866.]

 

Preamble.

 

      Preamble.- WHEREAS it is expedient that certain  securities  and

sums of money deposited in the  High  Courts  of  Judicature  at  Fort

William,  Madras  and  Bombay, 3*** in the course of suits in the said

Courts or in the late Supreme Courts at Calcutta, Madras  and  Bombay,

respectively,  and  now  or  hereafter  appearing to have been in such

deposit for a period of twenty years or  upwards,  without  any  claim

thereto  having  been  made  and allowed during that period, should be

transferred and paid to  the  Government  of  India  for  the  general

purposes of Government; 4***

 

     It is hereby enacted as follows:-

 

     1. Money  deposited in High Courts and unclaimed for twenty years

transferred to  Government.-All securities and sums of money deposited

in the said High Courts 5*** or any of them, in the course of suits in

any of  the said  Courts or  of the  late Supreme  Courts of Calcutta,

Madras and Bombay, and now or hereafter appearing to have been in such

deposit for  a period  of twenty  years or  upwards, without any claim

thereto having  been made  and allowed  during that  period, shall  be

transferred and  paid to  6*[the Government  of the State in which the

Court has its principal seat].

 

2.   [Proceeds of estates administered under order of Supreme Court of

Straits  Settlements or in charge of Administrator General of Bengal.]

Rep.   by  the Administrator General's Act, 1867 (24 of 1867) and  the

Repealing Act, 1874 (16 of 1874).

 

     3. Transfer  not made  pending suits.- Nothing in  this Act shall

authorize any  transfer or  payment of  any such  securities, sums  of

money or proceeds as aforesaid, pending

---------------------------------------------------------------------

1    Short title  given by  the Indian  Short Titles  Act, 1897 (14 of

     1897).

2    The words  "and the  proceeds of certain estates in the charge of

     the Administrator General of Bengal" rep. by Act 24 of 1867,  and

     the words "and in the Supreme Court of the  Straits  Settlements"

     rep. by Act 16 of 1874, s. 2 and Sch., Pt. I.

3    The words  "and in  the Supreme Court of the Straits Settlements"

     rep. by Act 16 of 1874, s. 2 and Sch. Pt. I.

4    The second  cl. of  the preamble rep. by Act 12 of 1876, s. 1 and

     Sch., Pt. I.

5    The words  "or Supreme  Court of the Straits Settlements" rep. by

     Act 16 of 1874.

6    Subs. by  the A.  O. 1937  for "the  G. of  I.  for  the  general

     purposes of Govt.".

 

 

 

any suit  already instituted or which shall hereafter be instituted in

respect thereof.

 

 

4.

 

 

Repayment on subsequent establishment of claim.

 

 

     4. Repayment  on subsequent  establishment of claim.-If any claim

shall hereafter  be made  to any  part of  the securities,  monies  or

proceeds which  shall be  transferred and  1*[paid to  any Government]

under the provisions of this Act, and if such claim shall, in the case

of securities  and monies transferred and paid under section 1 of this

Act, be established to the satisfaction of the High  Court  2***  from

which the transfer shall have been made, 2*** 3*[the Government of the

State in  which that  Court has  its principal  seat shall pay] to the

claimant the  amount of  the principal  so  transferred  and  paid  as

aforesaid, or  so much  thereof as  shall appear  to be  due 4* to the

claimant. 5***.

---------------------------------------------------------------------

1    Subs. by the A. O. 1937 for "paid to the G. of I."

2    Certain words rep. by Act 16 of 1874.

3    Subs. by the A. O. 1937 for "the G. of I. shall pay".

4    As to the costs of petition under this section, see the Unclaimed

     Deposits Act, 1870 (5 of 1870).

5    The second sentence rep. by Act 24 of 1867.

{}

 

THE INTEREST ON DELAYED PAYMENT TO SMALLSCALE AND ANCILLARY INDUSTRIAL UNDER-TAKING ACT, 1993

 

THE INTEREST ON DELAYED PAYMENT TO SMALLSCALE AND ANCILLARY INDUSTRIAL UNDER-TAKING ACT, 1993

 

No.32 OF 1993

 

CONTENTS

 

 

1.        Short title, extent and commencement.

2.        Definitions.

3.        Liability of buyer to make payment.

4.        Date from which and rate at which interest is payable.

5.        Recovery of amount due.

6.        Liability of buyer to pay compound interest.

7.        Appeal.

8.        Requirement to specify unpaid amount with interest in the annual statement of accounts.

9.        Interest not to be allowed as deduction from income.

10.      Overriding effect.

11.      Repeal and saving.

 

[2nd April, 1993.]

 

An Act to provide for and regulate the payment of interest on delayed payments to small scale and ancillary industrial undertaking and for matters connected therewith or incidental thereto.

 

BE it enacted by Parliament in the forty-fourth Year of the Republic of India as follows:-

 

1.         Short title, extent and commencement.

 

(1)       This Act may be called the Interest on Delayed Payments tot Small Scale and Ancillary Industrial Undertakings Act, 1993.

 

(2)       It extends to the whole of India, except the State of Jammu and Kashmir.

 

          (3) It shall be deemed to have come into force on the 23rd day of September, 1992.

 

2.         Definitions.  

          

           In this Act, unless the context otherwise requires, -

 

(a)       "Ancillary industrial undertaking" has the meaning assigned to it by clause (aa) of  section 3 of the Industries (Development and Regulation )  Act,  1951; (65 of 1951)

 

(b)       "Appointed day, means the day following immediately after the expiry of the period of thirty days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier.

                       

Explanation,- For the purposes of this clause, -

          

 (i)       'The day of acceptance' means, -

           

(a)       The day of the actual delivery of goods or the rendering of services; or

          

(b)       Where any objection is made in writing by the buyer regarding acceptance of goods or services within thirty days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier;                                                        

 

(ii)       'The day of deemed acceptance' means, where no objection is made in writing by the buyer regarding acceptance of goods or services within thirty days from the day of the delivery of goods  or the rendering of services, the day of the actual delivery of goods or the rendering of services;

 

(c)       'Buyer’ means whoever buys any goods or receives any services from a supplier for consideration;

 

(d)       'Goods’ means every kind of movable property other than actionable claims and money;

 

(e)       'Small scale industrial undertaking' has the meaning assigned to it by clause (j) of section 3 of the Industrial (Development and Regulation) Act, 1951; (65 of 1951)

 

(f)       'Supplier’ means an ancillary industrial undertaking or a small scale industrial undertaking holding a permanent registration certificate issued by the Directorate of Industries of a State or Union territory.

 

3.         Liability of buyer to make payment.

          

           Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefore on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day.

 

4.         Date from which and rate at which interest is payable.

          

           Where any buyer fails to make payment of the amount to the supplier, as required under section 3 the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay interest to the supplier on that amount from the appointed day or, as the case may be, from the day immediately following the date agreed upon, at such rate which is five per cent. points above the floor rate for comparable lending.

 

           Explanation. For the purposes of this section, 'floor rate for comparable lending' means the highest of the minimum lending rates charged by scheduled banks (not being co-operative banks) on credit limits in accordance  with the directions given or issued to banking companies generally by the Reserve Bank  of India under the Banking Regulation Act, 1949.(10 of 1949).

 

5.         Recovery of amount due. 

          

           Notwithstanding anything contained in any agreement between a supplier and a buyer or in any law for the time being in force, the buyer shall be liable to play compound interest (with monthly interest) at the rate mentioned in section 4 on the amount due to the supplier.

 

6.         Liability of buyer to pay compound interest.

          

           The amount due from a buyer, together with the amount of interest calculated in accordance with the provisions of section 4 and 5.shall be recoverable by the supplier from the buyer by way of a suit of other proceeding under any law for the time being in force.

 

7.         Appeal.

          

           No appeal against any decree, award or other order shall be entertained by any court or other authority unless the appellant (not being a supplier) has deposited with it seventy-five per cent.of the amount in terms of the decree, award or, as the case may be, other order in the manner directed by such court or, as the case may be, such authority. 

 

8.         Requirement to specify unpaid amount with interest in the annual statement of accounts.

          

           Where any buyer is required to get his annual accounts audited under any law for the time being in force, such buyer shall specify the amount together with the interest in his annual statement of accounts as remains unpaid to any supplier at the end of each accounting year.

 

9.         Interest not to be allowed as deduction from income.

          

           Notwithstanding anything contained in the Income-tax Act, 1961, (43 of 1961) the amount of interest payable or paid by nay buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income-tax Act, 1961, be allowed as deduction.

 

10.       Overriding effect.

          

           The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

 

11.       Repeal and saving. 

 

(1)        The Interest on Delayed Payments to Small Scale and Ancillary Industrial  Undertakings Ordinance, 1993 (Ord.4 of 1993) is hereby repealed.

 

(2)        Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corresponding provisions of this Act.