CHANDIGARH: The Punjab and Haryana high court has reprimanded the real estate company, M/s Orris Infrastructure Pvt Ltd, and the Union Bank of India for “illegally” removing the title deeds of a chunk of land worth crores of rupees lying in a bank locker. This locker was to be jointly operated by Orris Infrastructure and another real estate giant, M/s DLF Home Developers Ltd (DHDL).
It has been alleged that without the finalisation of the arbitration proceedings regarding the dispute between these two real estate companies around 40 acres of prime land in Gurgaon, Orris Infrastructure with the “connivance” of bank officials, illegally removed the title papers of the land.
“We are of the considered opinion that a gross illegality was committed by Orris Infrastructure in collusion with the Union Bank of India by removing the title deeds lying in a locker which was to be jointly operated by the parties. We are all obligated to abide by the rule of law and under no circumstance can anyone be permitted to take the law into their hands,” the high court held. The division bench comprising Justice Arun Palli and Justice Vikram Aggarwal passed these orders while hearing a plea filed by M/s DLF Home Developers Ltd.
The bench further observed that Orris Infrastructure and the Union Bank officials acted as if the award became final and that whatever was held therein was not subject to challenge.
“In our considered opinion, the Commercial Court, Gurgaon also erred in not turning the clock back and restoring the parties to their original status,” the bench held.
The facts of the case are that there was a collaboration agreement of 40.084 acres of land between M/s DLF Home Developers Ltd (DHDL) with M/s Orris and other entities. The dispute arose between the parties, and the matter was referred to the arbitrator.
Vide award dated July 15, 2024, some relief was granted to M/s Orris wherein they were entitled to the title deeds which were jointly kept with Union Bank of India. After the award, an application for correction was moved on July 30, 2024, by M/s DLF, and in the meantime, M/s Orris approached the bank for the operation of the locker for the removal of the title deeds.
As per the award, directions were to be complied with by the parties within 30 days (by August 14, 2024). The dispute which came to the high court arose out of a petition filed under Section 9 of the Arbitration Act restraining M/s Orris from getting the title deeds released from Union Bank of India pertaining to 14.084 acres.
The contention in the petition filed by DLF through senior advocates R S Rai and Chetan Mittal was two-fold – firstly, that even before the expiry of the 30-day time, M/s Orris approached the bank via a letter dated August 5, 2024, for the release of the original title deeds, and secondly, there cannot be piecemeal enforcement of the award, and the action of M/s Orris was premature as the award had not become final unless 90 days expired as per Section 36 of the Arbitration Act.
After hearing all the parties, the court observed that this act of removal of title deeds without waiting for the end of statutory period was grossly illegal and called for the highest level of condemnation and deprecation.
The bench further directed Orris Infrastructure to immediately place back all title deeds which were removed from the joint locker. The court has also asked the commercial court, Gurgaon, to decide the matter between the parties within three months.
