JAGJEET SINGH LYALLPURI (DEAD) THROUGH L.RS. vs. M/S UNITOP APARTMENTS AND BUILDERS LTD.

Case Type: Civil Appeal

Date of Judgment: 03-12-2019

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Full Judgment Text

                     REPORTABLE    IN THE SUPREME COURT OF INDIA    CIVIL APPELLATE JURISDICTION   CIVIL APPEAL NO.  692 OF 2016 Jagjeet Singh Lyallpuri (dead) Through       .… Appellant(s) Lrs. & Ors.      Versus M/s Unitop Apartments & Builders         …. Respondent(s) Ltd. J U D G M E N T A.S. Bopanna,J. 1.   The   appellants are  before  this   Court  assailing  the order dated 31.07.2015 passed by the High Court of Punjab and   Haryana   at   Chandigarh   in   FAO   No.   5704   of   2012 (O&M).   Through   the   said   order,   the   High   Court   has Signature Not Verified remanded   the   matter   to   the   sole   Arbitrator   Mr.   Justice Digitally signed by MAHABIR SINGH Date: 2019.12.03 17:47:00 IST Reason: Kuldip Singh, retired Judge, Supreme Court of India for Page 1 of 27 providing   opportunity   of   leading   evidence   to   both   the parties  and  also  grant opportunity  to cross­examine  the witnesses and thereafter decide each and every claim and counter   claim   separately   on   merits.     The   said   order   is passed in an appeal filed by the respondent herein under Section 37 of the Arbitration and Conciliation Act, 1996 (‘Act 1996’ for short).   The appellant herein who was the respondent in the said appeal is therefore before this Court claiming to be aggrieved by the said order. 2. The brief facts leading to the present situation is that the   appellants   herein   are   joint   owners   of   the   land measuring 14 Kanals and 3 Marlas (8560 Sq. yards) situate at   village   Sunet,   Tehsil   and   District   Ludhiana,   State   of Punjab.     The   respondent   company   through   its representatives claiming to be well­versed with construction and development of properties approached the appellants for   joint   venture   in   constructing   a   residential­cum­ commercial complex on the subject land.  Accordingly, an agreement dated 14.12.1996 was entered into and among other terms agreed therein, the respondent had undertaken Page 2 of 27 to complete the construction of the building consisting of at least six floors within three years from the date of obtaining the   sanctioned   plan   from   the   Ludhiana   Municipal Corporation.  The project was required to be funded by the respondent and a sum of Rs. 45,00,000/­ (Rupees Forty­ Five Lakhs only) was to be deposited with the appellant as a guarantee for completion of the project.  In that view, the appellants were expected to retain the same if the building is not completed within the period of three years.  The sale proceeds from the constructed building was to be shared in the   ratio   of   48:52   %   between   the   appellants   and   the respondent.   3. Pursuant to such agreement the respondent secured the   sanction   of   the   building   plan   from   the   Municipal Corporation on 04.07.1997.  The period of three years was to   be   computed   from   that   point   as   per   the   agreement. Hence the construction ought to have been completed by 03.07.2000.   According to the appellant, the respondent though commenced the construction during August, 1997, the   activity   was   undertaken   until   31.03.1999   and   the Page 3 of 27 project   was   abandoned   by   them   thereafter.     Since   the construction   was   not   completed   by   03.07.2000   and   no further   progress   was   made   despite   the   appellant   having waited beyond the said period, the appellants got issued a legal   notice   dated   01.11.2001   and   terminated   the agreement   dated   14.12.1996.     The   respondent   though issued reply dated 28.11.2001 did not proceed further to make progress in the construction.   4. The   appellants   further   claim   that   in   such circumstance   the   appellant   and   the   respondent   entered into   a   compromise   and   a   cancellation   agreement   dated 26.10.2004 was executed due to which an amount of Rs. 40,00,000/­ (Rupees Forty Lakhs only) from the amount which   was   received   as   security   deposit   was   returned. Notwithstanding the same, since there was change of guard in the composition of the management, the respondent filed an application under Section 9 of the Act, 1996 seeking to restrain the appellants from damaging or demolishing the construction which had been raised by the respondents. Immediately   thereafter   a   notice   dated   23.11.2004   was Page 4 of 27 issued by the respondent invoking the arbitration clause for referring the matter to arbitration.   The Arbitration Case No. 124 of 2006 under Section 11 of the Act, 1996 filed by the respondent was allowed on 03.07.2009 and Mr. Justice Kuldip Singh, retired Judge, Supreme Court of India was appointed   as   the   sole   arbitrator   to   resolve   the   dispute between the parties. 5. In that view the parties appeared before the learned Arbitrator   and   filed  their   respective   claim,  counter­claim and objection thereto.  The evidence by way of affidavit and the documents of respective parties was also filed, where after the learned Arbitrator on hearing the learned counsel for the parties passed the award dated 13.01.2010 through which both the  claim as well as the  counter claim was dismissed.  The respondent herein claiming to be aggrieved by the same filed a petition under Section 34 of the Act, 1996   in   the   Court   of   the   Additional   District   Judge, Ludhiana which was registered in Arbitration Case No. 3 dated 29.01.2010.   The learned Additional District Judge through the order dated 13.09.2012 affirmed the award by Page 5 of 27 dismissing the petition.   It is in that view the respondent herein filed an appeal under Section 37 of the Act, 1996 before the High Court.   The learned Single Judge of the High Court has arrived at the conclusion that the parties have   not   been   granted   appropriate   opportunity   by   the learned arbitrator to tender evidence by examining witness and to cross­examine the witnesses, whose affidavits were filed.  It is further held by the High Court that the learned Arbitrator   has   not  considered   the   aspect  relating   to  the extent   to   which   the   construction   was   put   up   and   the amount that was expended by the respondent herein and no determination, in that regard has been made.  The said observation was made after holding, though the time was not the essence of the contract but yet the long delay would not be justified.  It was held, even in that circumstance the other aspects required consideration.   In that background the matter was remanded to the learned Arbitrator for fresh consideration.   6. Mr.   Shyam   Divan,   learned   senior   counsel   for   the appellant   while   assailing   such   conclusion   by   the   High Page 6 of 27 Court has taken us through the appeal papers and has referred   to   the   agreement   dated   14.12.1996   and   the clauses governing the parties.  It is contended that when a dispute is referred to the learned Arbitrator, Section 19 of the Act, 1996 provides that the Arbitrator can determine the rules of procedure.  In that regard it is pointed out that in the hearing held on 28.11.2009 the learned Arbitrator has in the course of the proceedings finalised the procedure and recorded the same in the order.  It is pointed out that the respondent was represented by a senior advocate in the arbitration proceedings wherein it has been agreed that the parties would rely upon the affidavits and documents that were filed and the procedure of cross­examination could be dispensed.  In that background the learned arbitrator has referred to the materials on record in the background of the claim put forth and the affidavits filed in support thereof while arriving at the conclusion.  Hence, he contends that the procedural lapse as attempted to be made out at this stage is not justified.   Page 7 of 27 7. It is further contended by Mr. Shyam Divan that in a proceedings where the consideration ought to be limited to the extent provided under Section 34 of the Act, 1996 and when the learned Additional District Judge has in that light examined   and   confirmed   the   award,   the   consideration ought not to have been expanded by the learned Single Judge in a proceedings under Section 37 of the Act, 1996 wherein also the scope is limited.  On the factual aspect it is   contended   that   despite   the   terms   agreed   in   the agreement dated 14.12.1996, no progress was made in the construction   even   until   the   point   when   the   proceedings were   initiated   before   the   learned   Arbitrator   after   it   was abandoned in March 1999. In that circumstance when the learned   Arbitrator   has   taken   into   consideration   these aspects and arrived at the conclusion, the learned single judge   could   not   have   interfered   with   the   award.     The learned senior counsel in that regard has taken us through the award to point out that a detailed consideration has been   made   by   the   learned   Arbitrator   on   all   aspects including the fact that the cancellation of the agreement was agreed between the parties.  On the contention urged Page 8 of 27 relating   to   the   construction   incurring   an   amount   of Rs.1,22,00,000/­   (Rupees   One   Crore   Twenty­Two   Lakhs only) said to have been made by the respondent also a consideration has been made.  In that circumstance when the contention was adverted to and a view was taken by the learned Arbitrator based on a finding of fact, the learned Single Judge was not justified in commenting that the said aspect had not been adverted to by the learned Arbitrator. It  is   therefore   contended   that   the   award   is   liable   to   be sustained and the order passed by the learned Single Judge be set aside. 8. Mr. Shibo Shankar Misra, learned counsel for the respondent in his attempt to sustain the order passed by the learned Single Judge contends that the respondent had raised twelve claims before the learned Arbitrator and each claim should have been decided separately.  It is his case that   the   learned   Arbitrator   has   proceeded   to   reject   the claim only on the conclusion that time is the essence of the contract.  Though the terms as contained in the agreement dated   14.12.1996   is   not   disputed,   the   learned   counsel Page 9 of 27 contends that the delay caused resulting in non­completion of the project is solely attributable to the appellant.   The appellants had not parted with the title documents relating to the land in question due to which the respondent was not   in   a   position   to   raise   the   funds   from   the   bank   by creating mortgage.   Apart from the security amount the respondent   has   suffered   loss   to   the   extent   of   Rs. 1,22,00,000/­ (Rupees One Crore Twenty­Two Lakhs only) being the cost of construction which was put up.  Specific claim was raised under different heads before the learned Arbitrator. Despite such contentions and claims being put forth the learned Arbitrator has not considered the same. In   that   regard   it   is   contended   that   clause   11   of   the agreement   which   provides   relating   to   the   expenditure incurred has not been properly appreciated.   The learned counsel   contended   that   the   learned   Additional   District Judge in the proceedings under Section 34 of the Act, 1996 has   also   not   adverted   to   these   aspects   of   the   matter. However,   the   learned   Single   Judge   taking   note   of   these aspects and also keeping in view the decision in the case of Oil and   Natural Gas Corporation Ltd. vs. SAW Pipes Page 10 of 27 Limited   2003 (5) SCC 705 has arrived at the conclusion that an award of the present nature cannot be sustained and has accordingly remanded the matter to the learned Arbitrator to provide opportunity to the parties and take a fresh decision.  It is contended that in such circumstance when   both   parties   would   have   an   opportunity,   the appellant   herein   cannot   make   out   any   grievance.     He therefore contends that the above appeal be dismissed. 9. In   the   light   of   the   contentions   put   forth   we   have perused   the   appeal   papers   and   made   reference   to   the material on record.   With regard to the agreement dated 14.12.1996 and the clauses contained therein to regulate the parties there is no serious dispute between the parties. The  very  fact  that  a contention  has   been  raised  by  the respondent   seeking   to   attribute   the   delay   and   the   non­ completion of the project to the appellant by contending that   the   non­furnishing   of   the   title   documents   had prevented the respondent from raising loan would by itself indicate that no progress was made except putting up the initial   construction   and   the   project   was   not   completed Page 11 of 27 within the period of three years or thereafter, though the building plan was sanctioned on 04.07.1997.  In that light the appellant had issued a notice dated 01.11.2001 and terminated the agreement, which had resulted in a dispute between the parties.   In that background the matter was placed   before   the   learned   Arbitrator   who   had   been appointed   in a  proceeding  under   Section  11  of   the  Act, 1996.  A perusal of the award dated 30.01.2010 available at Annexure P­12 to the appeal papers would indicate that a   detailed   consideration   has   been   made   by   the   learned Arbitrator on all aspects of the matter.  In that background when the petition under Section 34 of the Act, 1996 was filed   before   the   learned   Additional   District   Judge,   the learned Additional District Judge in fact has also adverted to   all   aspects   of   the   matter   and   since   no   ground   for interference as contemplated under Section 34 of the Act, 1996 was made out, the learned Additional District Judge through his order dated 13.09.2012 has upheld the award. 10. In that backdrop when the learned Arbitrator and the learned   Additional   District   Judge   have   arrived   at   a Page 12 of 27 concurrent opinion, it is necessary for us to take note as to whether the learned Single Judge in an appeal filed under Section 37 of the Act, 1996 could have adverted into the merits of the contention beyond the scope available under Section 34 (2) of the Act, 1996 so as to set aside the award and   remand   the   matter.     In   that   regard   whether   the contentions which were put forth to assail the award by picking   holes   in   the   procedure   adopted   by   the   learned Arbitrator   is   to   be   accepted   or   not   also   requires examination, keeping in view the scope of Section 34 (2) of the Act, 1996 and determine as to whether such ground is made out. 11. Since   the   learned   Single   Judge   has   presently accepted the contention raised on behalf of the respondent herein that the procedure followed by the learned Arbitrator is contrary to law and has prejudiced the respondent herein since the witnesses were not cross­examined, this aspect of the   matter   is   required   to   be   noticed   at   the   outset.     As rightly pointed out by the learned senior counsel for the appellant,   the   rules   of   procedure   to   be   followed   by   an Page 13 of 27 Arbitral Tribunal is flexible and can be agreed upon by the parties   as   provided   under   Section   19   of   the   Act,   1996 which reads as hereunder; 19.   Determination   of   rules   of   procedure   –   (1)   The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872). (2) Subject to this Part, the parties are free to agree on the procedure   to   be   followed   by   the   arbitral   tribunal   in conducting its proceedings. (3) Failing any agreement referred to in sub­section (2), the arbitral tribunal may, subject to this Part, conduct the proceedings in the manner it considers appropriate. (4) The power of the arbitral tribunal under sub­section (3) includes   the   power   to   determine   the   admissibility, relevance, materiality and weight of any evidence. 12.   Further, keeping in view that the  contention put forth before the High Court by the respondent herein to assail the award was in the manner as noticed above with regard   to   the   appropriate   procedure   not   being   followed and there being denial of opportunity and in that view the respondent   not   being   able   to   put   forth   the   case appropriately before the learned Arbitrator, the effect of the same is required to be examined.  When a challenge is raised on that ground, in our opinion it would at best fall under Section 34 (2) (a) (iii) which reads as follows; Page 14 of 27  “34.   Application for setting aside arbitral award  – (1) Recourse to a Court against an arbitral award may be made only by an application  for  setting  aside   such  award   in  accordance   with sub­section (2) and sub­section (3). (2) An arbitral award may be set aside by the Court only if—      (a) the party making the application furnishes proof that—             (i) xxxxxxxxxxxxxxxx           (ii) xxxxxxxxxxxxxxx (iii)  the   party   making   the   application  was   not   given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or”                                                           (emphasis supplied) Therefore, in order to consider whether the challenge is sustainable on the ground available in law, at the outset it is necessary to examine whether the procedural lapse if any is committed by the learned Arbitrator in unilaterally denying the opportunity to the parties so as to make the award invalid and to set aside the same exercising the power under Section 34 or in an appeal under Section 37 of the Act, 1996.  In this regard as noticed, Section 19 of the Act, 1996 provides that the Arbitral Tribunal is not bound   by   the   Code   of   Civil   Procedure   or   the   Indian Evidence Act.  Further, it provides that the parties are free to agree on the procedure to be followed by the Arbitral Tribunal.  In this back drop it is noticed that in the case on hand, in the proceedings dated 28.11.2009 (Annexure Page 15 of 27 P­15) before the learned Arbitrator, the procedure to be followed has been discussed and recorded, which reads as hereunder; “The parties and their learned counsel have been heard. Whatever   further   pleadings,   documents   and   list   of witnesses were to be filed by the parties in terms of the proceedings   dated   10.10.2009,   have   been   done.    The evidence of the claimant as well as of the respondents was to be recorded today.  Mr. Ram Lal, whom the respondents want to cross­examine, is present before the Arbitrator. The learned counsel for the parties have, however, agreed and   consented   before   me   they   do   not   wish   to   cross­ examine any of the witnesses whose affidavits have been filed by the parties concerned.   In view of the consent of the learned counsel of the parties and parties themselves who are present, I close the evidence.  The parties will rely on the affidavits already filed and the documents and other pleadings already placed on the record.” (emphasis supplied) That apart by the very proceedings dated 28.11.2009 the points on which arguments would be addressed were also treated   as   the   issues   for   consideration   and   has   been formulated and recorded in the order sheet.   13. From a perusal of the proceedings dated 28.11.2009 it   would   be   clear   that   both   contentions   raised   by   the learned counsel for the respondent herein and which were accepted by the learned Single Judge to ultimately remand the matter, would not be justified.  Firstly, in the presence of   the   parties   and   their   learned   counsel   it   has   been Page 16 of 27 recorded that they do not wish to cross­examine any of the witnesses whose affidavits have been filed by the parties concerned and one of the witness who was present was discharged   without   being   cross   examined   and   no grievance was made either by the parties or their learned counsel who were present.  It is in that view the evidence was taken as closed on 28.11.2009 and  the issues for consideration was settled for arguments on the same day. In   that   circumstance   having   consented   to   the   said procedure, it would not be open for the respondent herein to   approbate   and   reprobate   so   as   to   raise   a   different contention   at   this   point.     Having   accepted   the   said procedure the respondent is estopped from raising such contention   before   the   learned   Single   Judge   that   the arbitrator   misconducted   himself   by   not   permitting   the parties  to cross­examine  the witness and  also that  the learned Arbitrator being more than 70 years of age and suffering   from   knee   problem   has   pressurized   the respondent to speed up the matter and the evidence was closed.   It is rather intriguing for us to note that such contention has not only been permitted to be raised, but Page 17 of 27 also accepted by the learned Single Judge to remand the matter, which is wholly unjustified. 14. We   are   of   such   opinion   for   the   reason   that   the procedure to be followed in arbitration proceedings was settled by a separate order dated 28.11.2009 during the course of the proceedings before the learned Arbitrator. Thereafter   the   award   was   passed   only   on   13.01.2010. Though the respondent was represented by their learned counsel and the order dated 28.11.2009 was passed while recording   the   proceedings   of   that   day,   neither   any application had been filed before the learned Arbitrator to recall the said order and provide opportunity to tender evidence or cross examine, nor was a challenge raised by initiating   any   other   proceedings,   before   the   award   was passed.  It is only subsequent to the award being passed such contention is being raised as an afterthought, which in   such   event   cannot   be   accepted.       That   apart,   the agreement being entered into on 14.12.1996 and the work not having progressed subsequent to March,1999 was not seriously in dispute and in that circumstance based on Page 18 of 27 the   affidavit,   the   admitted   documents   have   been   taken note by the learned Arbitrator due to which the non­cross­ examination   in   any   event   has   not   prejudiced   the respondent herein.   One aspect of the matter no doubt was with regard to the claim that was put forth by the appellant   herein   that   a   cancellation   agreement   dated 26.10.2004 was entered into and the security deposit of Rs. 40 Lakhs and the advance of Rs. 23 Lakhs has been re­paid to Mr. S. Surinder Singh which was disputed by the respondent.  On that aspect the learned Arbitrator in any event  has concluded that the  said payment if any cannot   be   considered   as   a   payment   made   to   the respondent   company   but   has   been   received   by   Mr. Surinder Singh who had made gain unto himself. In such event since the respondent has not filed the affidavit of Mr. Surinder Singh disputing the same, it is an inter­se matter to claim from Mr. Surinder Singh and therefore, the non­ cross­examination on that aspect also has not resulted in any prejudice.  Be that as it may, as already taken note, the procedure to be followed in the arbitral proceedings Page 19 of 27 has been agreed to by the parties.   Hence the respondent cannot be heard to complain as and when it suits them. 15.    Further,   since   through   the   very   order   dated 28.11.2009   the   issues   for   consideration   on   which   the arguments would be addressed was settled and the matter was proceeded on that understanding without raising any objection, the grievance put forth by the respondent and accepted   by   the   learned   Single   Judge   that   the   learned Arbitrator has not answered each of the claims separately in the award, cannot also be accepted.  A perusal of the award   would   indicate   that   the   learned   Arbitrator   has adverted to all aspects in a sequential manner and has recorded his conclusion in answer to the contentions that were put forth.   16.  One other aspect which has been recorded by the learned Single Judge as the reason for which the matter requires reconsideration by the learned Arbitrator is that the claim put forth by the respondent that the sum of Rs. 1,22,00,000/­ spent by them has not been considered by the learned Arbitrator.  In that regard the learned Single Page 20 of 27 Judge has held that though the respondent herein would not be entitled to continue the project due to lapse of time the learned Arbitrator has not considered the right of the parties relating to the extent of the cost incurred for the existing construction and the manner in which it is to be dealt with.  On this aspect, a perusal of the award passed by the learned Arbitrator would indicate that after having arrived   at   the   conclusion   that   the   respondent   has committed   the   breach,   the   learned   Arbitrator   has   also adverted   to   the   said   contention   relating   to   the   cost incurred for the extent of construction made, as claimed and has rejected the same.   The consideration as made is as hereunder; “I may examine, at this stage the claimant’s contention that construction worth about Rs. 1 crore 20 lacs has been done on the project.   The claimant has primarily relied on the balance sheet of the Company for the relevant year in support of this argument.  The balance sheet is Annexure­K at page 118­126 of the statement of Claim.   In the schedule forming part of the st accounts  for  the  year  ending 31   March,  1999,  the  balance sheet shows an expenditure of about 1 crore 20 lacs on the project in process.  This includes Rs. 44 lacs as advance given to   the   respondents   (land   owners)   as   guarantee   money. Expenditure incurred has been shown under various headings such as advertisement and publicity, salary, entertainment, iron and steel, cement, GC sheets, stand, bricks, marble, crusher, electrical,   GI   pipes,   gate,   professional   charges,   telephone expenses, electricity expenses, labour and construction charges. An   amount   of   Rs.   56,58,530/­   has   been   shown   under   the heading   purchase.     It   is   not   indicted   so   as   to   what   was purchased.   All the items required for the construction of the Page 21 of 27 project have been shown separately but it is not clear on what purchase/purchase this amount was spent.  No explanation is forthcoming from the claimant in this respect.   Mr. Mahajan while controverting the argument of Mr. Lekhi has stated that Local Commissioner’s report Annexure­W makes it clear that the amount which may have been spent on the construction was much less.  Be that as it may there is no expert evidence on the record to show as to how much money was spent on the construction.   The claimant company did receive some money as advance against flats and offices to be constructed.  It is in the evidence that Rs. 23 lacs was received by the Company in st this respect.  The balance sheet as on 31  March, 1999 at page 121   shows   that   the   Company   received   Rs.   19,79,488/­   as advance against flats and offices.   In the absence of reliable evidence on the record, it is not possible to accept the argument of the learned counsel for the claimant.” 17.   In that circumstance when the learned Arbitrator has noticed the contention and recorded a finding of fact it cannot be accepted that the learned Arbitrator has not adverted to the same so as to require reconsideration.  To be fair to the learned Arbitrator, it has in fact been noticed by   the   learned   Arbitrator   relating   to   the   change   of Directors and shareholders of the company in 2007 as against the shareholders who existed as on 30.09.2005 and also that the erstwhile Directors/shareholders who had personal knowledge have not been examined by filing their   affidavits   and   even   though   an   application   dated 12.09.2009 for summoning them as witnesses was filed, the same was not pressed and the evidence was closed on Page 22 of 27 28.11.2009 with the consent of the parties.  The learned Arbitrator has in fact recorded that none of them have come forward to render assistance in the proceedings.  In such circumstance when the respondent herein, who were themselves   the   claimants   before   the   learned   Arbitrator have not conducted the matter in an appropriate manner by securing affidavit evidence of the erstwhile directors / shareholders, they cannot at this stage turn around and contend   that   the   learned   Arbitrator   has   misconducted himself.  In any event the challenge to the award does not fall under any of the clauses of Section 34 of Act, 1996. In such   circumstance   the   reliance   placed   by   the   learned Single Judge on a decision in the case of ONGC (supra) is highly misplaced.  Therefore, the order dated 31.07.2015 passed by the learned Single Judges is not sustainable and the same is liable to be set aside. 18. During the course of hearing we had also made an endeavour   to   see   that   the   parties   amicably   settle   the matter by enabling the respondent herein to receive some amount   towards   the   expended   portion,   also   by   not Page 23 of 27 ignoring the loss suffered by the appellants due to delay. From the photographs produced before us we have noticed that   except   raising   some   columns,   there   is   no   major construction that is put up.  In so far as the expense as claimed by the respondent, as indicated by the learned Arbitrator   as   extracted   above,   there   is   no   conclusive evidence to that effect.  Though such columns are raised, admittedly   construction   activity   has   not   taken   place beyond   March,   1999   and   already   two   decades   have elapsed.  In view of the breach and the respondent herein failing in the present lis there would be no absolute right in their favour since the inevitable loss suffered by the appellants by not being able to enjoy the property for the last more than two decades also cannot be lost sight.  The appellant herein who is the owner of the property will have to enter into a fresh contract and the need and manner of development   may not be the same at this point and in such event the appellant herein also would be put to some loss to undertake the demolition process themselves or there   would   be   reduction   that   would   be   made   by   the alternate   developers   who   would   undertake   the   project. Page 24 of 27 Further,   the   actual   quantum   in   any   event   cannot   be determined and also when a breach has been committed through the predecessor directors / shareholders of the respondent  company  and  when the   present  directors  / shareholders have entered the scene in the midst of the breach they would have to bear the loss, if any, to that extent.     Therefore,  without  reference  to  the   actual  loss suffered   by   the   parties,   while   putting   an   end   to   the litigation between the parties, in the peculiar circumstance and in the interest of justice, notwithstanding the fact that we   have   held   the   order   of   the   learned   Single   as   not sustainable, in exercise of our power under Article 142 of the Constitution of India the appellant is directed to pay the sum of Rs. 45,00,000/­ (Rupees Forty­Five Lakhs only) to the respondent whereupon they would be entitled to assume   possession   of   the   subject   land   and   proceed   to enjoy the same in accordance with law.   19. In   the   result   the   appeal   is   disposed   of   with   the following order: Page 25 of 27 (i)  The   order   dated   31.07.2015   passed   by   the   High Court of Punjab and Haryana in FAO No. 5704 of 2012 (O&M)   is   set   aside.     Consequently,   the   award   dated 13.01.2010 passed by the learned Arbitrator is restored. (ii) The   appellant   is   directed   to   pay   the   sum   of   Rs. 45,00,000/­ (Rupees Forty­Five Lakhs only) in full quit of all claims, to the respondent within three months. (iii) Immediately   on   payment   of   the   said   amount   the appellant shall be entitled to resume possession of the subject land in the status as it exists and enjoy the same in accordance with law. (iv) Parties to bear their own costs.   ….……………………….J.                                           (R. BANUMATHI)          ….……………………….J.                                           (A.S. BOPANNA) ….……………………….J. Page 26 of 27                                               (HRISHIKESH ROY) New Delhi, December 03, 2019 Page 27 of 27