Landmark Property Development And Company Ltd. & Ors. vs Ansal Properties & Infrastructure Ltd. & Ors.

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This judgment disposed of connected matters. The same reasons were delivered in the following 2 cases.

Landmark Property Development And Company Ltd. & Ors. vs Ansal Properties & Infrastructure Ltd. & Ors.

Landmark Property Development And Company Ltd. & Ors. vs Ansal Properties & Infrastructure Ltd. & Ors.

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The Decree Holders (Landmark Group) obtained an Arbitral Award dated 07.09.2018, as corrected on 17.09.2018 and 13.11.2018, against Judgment Debtor No.1 (Ansal Properties & Infrastructure Ltd.) arising out of disputes under a Business Transfer Agreement dated 02.04.2012, itself stemming from a Joint Venture Agreement for real estate development in Meerut, Ghaziabad and Karnal. The Decree Holders filed OMP (ENF.) (COMM.) 159/2019 under Section 36 of the Arbitration and Conciliation Act seeking enforcement of the award, while the Judgment Debtors challenged the award under Section 34 of the Act.

The Judgment Debtor filed three applications in the enforcement proceedings: EX.APPL.(OS) 940/2023 under Section 47 and Order XXI Rule 2(2) read with Section 151 CPC seeking certification of adjustment, discharge and satisfaction of the award; EX.APPL.(OS) 941/2023 under Section 47 read with Section 151 CPC seeking consequential directions; and EX.APPL.(OS) 942/2023 under Section 5 of the Limitation Act read with Section 151 CPC seeking condonation of delay. The Judgment Debtors contended that a comprehensive settlement was reached on 21.03.2023 through negotiated agreements executed between the parties, including a Supplementary cum Amendment Agreement, with executed documents kept in escrow with a mutually trusted third party, Mr. Jayant Davar.

The Court examined the rival contentions regarding the alleged settlement, the undertaking letter dated 21.03.2023, and whether it amounted to an unconditional waiver or abandonment of the award by the Decree Holders, as well as issues of adjustment, discharge and satisfaction of the arbitral award within the framework of enforcement proceedings under the Arbitration and Conciliation Act and the Code of Civil Procedure.

Catchwords: arbitral award enforcement · adjustment and satisfaction of award · Section 47 CPC · Order XXI Rule 2 CPC · Section 36 Arbitration and Conciliation Act · Section 34 Arbitration and Conciliation Act · settlement agreement · escrow arrangement · joint venture dispute · real estate · condonation of delay · Section 5 Limitation Act · waiver · Business Transfer Agreement