Arbitration Tribunal Cannot Hinder Statutory Actions Against Illegal Constructions, Rules Apex Court
In a significant ruling, the Supreme Court of India has emphasized that arbitration proceedings involving private land disputes do not impede the statutory authorities' power to act against unauthorized constructions. The judgment was delivered by a bench comprising Justices J.B. Pardiwala and Ujjal Bhuyan in the case of Rajdarbar Iconic Venture Private Limited v. Anurag Rastogi & Ors., where a contempt petition was filed against the respondents for allegedly flouting a previous order of the court.
The case revolved around a private dispute over land between Rajdarbar Iconic Venture Private Limited and Anurag Rastogi, among others. The Municipal Corporation had already deemed the construction on the disputed land unauthorized and issued demolition orders. However, the Appellate Authority, considering the ongoing arbitration proceedings, had ordered a status quo until the arbitration's conclusion.
The Supreme Court criticized the Appellate Authority's decision to interfere with the demolition orders based on the arbitration proceedings. The court asserted that statutory authorities are empowered to address illegal constructions independently of any arbitration regarding land rights. The apex court directed the Municipal Corporation to challenge the Appellate Authority's order in the High Court and urged the Arbitral Tribunal to expedite its proceedings.
The court also directed the District Town Planner (Enforcement), Gurugram, to proceed according to the Haryana Development and Regulation of Urban Areas Act, 1975, ensuring swift action against unauthorized constructions. The ruling clarifies the distinct roles of arbitration tribunals and statutory authorities, reinforcing the latter's authority in enforcing urban development laws.
Bottom Line:
Arbitration proceedings concerning a private dispute over land cannot interfere with statutory authorities' actions regarding illegal or unauthorized constructions.
Statutory provision(s): Haryana Municipal Corporation Act, 1994, Haryana Development and Regulation of Urban Areas Act, 1975
Rajdarbar Iconic Venture Private Limited v. Anurag Rastogi, (SC) : Law Finder Doc id # 2902427
