Case Note & Summary
The dispute arose from land acquisition proceedings initiated by the Government of Bihar concerning 84.31 acres of land. The appellant was awarded compensation of Rs. 20,231.67 but claimed Rs. 2,80,000 as the market value. Before the District Magistrate could hear the reference under Section 18 of the Land Acquisition Act, the parties agreed to refer the matter to a Board of Arbitration. The Board confirmed the compensation awarded by the Collector. The appellant's application to set aside the award was dismissed by the District Court, and the High Court also dismissed his appeal. Subsequently, the appellant sought a certificate of fitness for appeal to the Supreme Court, raising for the first time the argument that the arbitration agreement was invalid under Article 299 of the Constitution. The High Court accepted this contention and granted leave. The Supreme Court, however, held that the question of whether there was a valid agreement under Article 299 was not purely a legal question but required factual investigation. The Court emphasized that the appellant could not raise this point for the first time in the Supreme Court or in the application for a certificate of fitness, as he had previously participated in the arbitration proceedings and had not raised the issue in earlier stages. The Court concluded that the appeal was dismissed, and no costs were awarded.
Headnote
A) Arbitration - Validity of Arbitration Agreement - New Plea Not Allowed - Civil Procedure Code, 1908, Order VI Rule 8, Order VIII Rule 2 - The appellant raised a new plea regarding the arbitration agreement's validity only at the Supreme Court stage, which was not permissible as it required factual investigation and was not raised in earlier proceedings. Held that the appellant was debarred from raising this point for the first time in the Supreme Court (Paras 1046-1047).
Issue of Consideration
Whether the appellant could raise a new plea regarding the validity of the arbitration agreement for the first time in the Supreme Court.
Final Decision
The Supreme Court dismissed the appeal, holding that the appellant was barred from raising the new plea regarding the arbitration agreement's validity as it was not presented in earlier proceedings.
Law Points
- Civil Procedure Code
- Order VI Rule 8
- Order VIII Rule 2
- Article 299 of the Constitution of India
