AIROnline 2025 SC 186

Supreme Court Of India

(From : AIROnline 2013 Del 189 and AIROnline 2013 Del 190)

Hon'ble Judge(s): Sanjiv Khanna, Sanjay Kumar , JJ

Arbitration and Conciliation Act (26 of 1996) , S.34, S.37— Land Acquisition Act (1 of 1894) , S.48— Arbitral award - Legality - Admittedly, after award determining compensation was passed and possession of land was handed over to beneficiary Board , agreement for returning land was entered into between Board and alleged owner - It was not open even to Government to withdraw from acquisition after possession was taken over - Also, there was no document executed transferring subject land to Board, whereby it could claim absolute rights over it - When State uses its sovereign power of eminent domain and acquires land for a public purpose, such an exercise cannot be set at naught by beneficiary of such acquisition, by entering into a private agreement - Same would be a fraud on the exercise of sovereign power by State - Agreement to return land was in contravention of fundamental policy of Indian law - Arbitral award upholding such agreement was liable to be set aside. Delhi Agricultural Produce Marketing (Regulation) Act (87 of 1976) , S.24(2)— AIROnline 2013 Del 189-ReversedAIROnline 2013 Del 190-Reversed (Para 13 14 15 16 17 18) .....