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Arbitration: Unilateral appointment of a sole arbitrator is Void ab initio – Award set aside

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In Govt of NCT of Delhi vs. M/S RKMT Buildcon Pvt. Ltd., the Delhi High Court set aside an arbitral award, ruling that the unilateral appointment of a sole arbitrator by one of the contesting parties (GNCTD/PWD) was void ab initio. Justice Harish Vaidyanathan Shankar held that such an appointment violates the mandatory neutrality requirements of Section 12(5) of the Arbitration and Conciliation Act. The Court emphasized that participation in arbitral proceedings does not constitute a waiver of the right to object to an ineligible arbitrator; a valid waiver requires an express agreement in writing executed after the dispute has arisen.

  1. Factual Background

The Petitioner (GNCTD through PWD) and the Respondent (M/S RKMT Buildcon) entered into a 2016 agreement for the construction of school classrooms in North-West Delhi. Following the completion of works, disputes emerged regarding payments, escalation costs, and prolongation claims. On January 17, 2023, the Chief Engineer (Projects) of the PWD unilaterally appointed a Sole Arbitrator to adjudicate these disputes. The arbitrator eventually rendered an award allowing several of the Respondent’s claims.

  1. Legal Challenge

The Petitioner challenged the award under Section 34 of the Arbitration and Conciliation Act. Interestingly, the Petitioner (who made the appointment) argued against the legality of its own unilateral appointment mechanism, claiming it contravened the statutory mandate for independence and impartiality. The Petitioner contended that an appointment emanating solely from a designated authority of an interested party is vitiated in law.

  1. Arguments Regarding Waiver

The Respondent argued that the appointment was not unilateral because they had participated in the process after being shown a panel of names. They further contended that by participating in the arbitral proceedings without raising an objection, the Respondent had effectively waived any right to challenge the arbitrator’s eligibility under Section 12(5).

  1. Court’s Findings and Reasoning

The Court rejected the Respondent’s arguments, relying on the following legal principles:

  • Mandatory Neutrality: The 2015 Amendment to the Act elevated the requirement of an independent and impartial tribunal to a binding legislative mandate.
  • Unilateral Appointment Prohibited: Any mechanism that permits an interested party to unilaterally constitute an Arbitral Tribunal is proscribed, as it fails the test of manifest justice.
  • Strict Requirements for Waiver: Under the proviso to Section 12(5), a waiver can only occur through an “express agreement in writing”. The Court held that this requires a conscious, informed, and unequivocal relinquishment of a statutory right.
  • Conduct vs. Written Agreement: The Court clarified that waiver cannot be inferred from conduct, silence, or “tacit acceptance” during the proceedings. Mere participation in the arbitration does not elevate the status of the appointment to a valid waiver.
  1. Conclusion

The Court concluded that the appointment of the arbitrator by the Chief Engineer was vitiated at its inception. Because the constitution of the tribunal was contrary to the mandatory statutory framework, the resulting award lacked legitimacy and was set aside. The Court clarified that setting aside the award does not prevent the parties from pursuing other available legal remedies.

2026 DHC 5228

Govt of Nct of Delhi V. M/S Rkmt Buildcon Pvt. Ltd. (D.O.J. 01.07.2026)

2026 DHC 5228 click here to view full text of judgment

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Bribes Carry No Immunity: Inapplicability of Section 17A Prior Approval to Demands for Illegal Gratification

October 18, 2026 No Comments

This appeal arose from a judgment of the Rajasthan High Court which dismissed the appellant’s criminal revision petition challenging the framing of charges under Section 7 of the Prevention of Corruption Act, 1988 (PC Act). The appellant, a police constable, was accused of demanding a bribe of Rs. 1.5 lakhs on behalf of a Superintendent of Police. The primary contention raised by the appellant was that the inquiry and investigation were vitiated for want of prior approval under Section 17A of the PC Act.

The Supreme Court dismissed the appeal and upheld the concurrent orders of the High Court and the Trial Court. The Court held that Section 17A of the PC Act—which mandates prior approval before investigating a public servant—applies strictly to recommendations made or decisions taken in the discharge of official functions or duties, and by no stretch of imagination can it be extended to cases involving the demand or acceptance of illegal gratification, which are pure criminal acts unrelated to official duties.

Summary of the Judgment

  • Scope and Intent of Section 17A of the PC Act:
    • Section 17A prohibits police officers from conducting inquiries or investigations into offences alleged against a public servant where the offence is relatable to any recommendation made or decision taken in discharge of official functions or duties, without prior approval from the competent authority.
    • The provision is designed to protect public servants from malicious interference in bona fide administrative or quasi-judicial decision-making, but it does not provide an omnibus protective umbrella or blanket immunity for criminal misconduct.
  • Exclusion of Bribery and Illegal Gratification:
    • Criminal acts such as misappropriation, cheating, criminal breach of trust, and receiving bribes or demanding illegal gratification are completely foreign to the discharge of official duties.
    • Reaffirming precedents like Central Bureau of Investigation v. Santosh Karnani and Anil Daima v. State of Rajasthan, the Court reiterated that demanding a bribe is a pure criminal act that has no linkage with official recommendations or decisions, thereby rendering Section 17A completely inapplicable.
  • Validity of Prosecution Sanction:
    • The record indicated that valid prosecution sanction under Section 19 of the PC Act had been duly granted prior to the taking of cognizance. The Court noted that even if any procedural irregularity were claimed regarding sanction timing, it would not vitiate the trial on merits.
  • Final Outcome:
    • The Supreme Court dismissed the appeal, holding that the lack of prior approval under Section 17A did not vitiate the proceedings because the provision was never attracted to allegations of bribery.

2026 INSC 1147

Tejaram v. State of Rajasthan (D.O.J. 16.10.2026)

2026 INSC 1147 click here to view full text of judgment

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Protection of Water Bodies vs. Bona Fide Flat Buyers: Balancing State Resumption with Equitable Relief

October 18, 2026 No Comments

These civil appeals arose from orders passed by the Madras High Court which dismissed challenges against the Commissioner of Land Administration’s order setting aside a fraudulently granted ryotwari patta over a water body (Kanakkan Pillai Kuttai) and ordering the demolition of residential apartments built thereon. The land in question (Survey No. 572, Thirumullaivoyal Village) was historically classified in revenue records as Government Poramboke (tank/water body). Despite Section 14-A of the Tamil Nadu Estates (Abolition and Conversion into Ryotwari) Act, 1948, which strictly prohibits ryotwari pattas on private tanks or ooranis, a District Revenue Officer illegally granted a patta in 2011, leading to commercial subdivision, bank mortgaging, and construction of residential flats sold to innocent buyers.

The Supreme Court dismissed the appeals, affirming that public water bodies vest in the State free from encumbrances and cannot be converted into ryoti land or alienated. However, taking cognizance of the plight of innocent flat buyers who purchased properties backed by municipal approvals and revenue mutations, the Supreme Court invoked equitable measures, directing the Chief Secretary and District Collector to allot a vacant, commensurate site to the flat owners within six months before proceeding with the demolition of the 0.22-acre constructed area.

  • Non-Ryoti Nature of Water Bodies and Section 14-A:
    • Beds and bunds of tanks, channels, and communal poramboke lands do not constitute “ryoti land” under Section 3(16) of the Tamil Nadu Estates (Abolition and Conversion into Ryotwari) Act, 1948.
    • Section 14-A of the Act explicitly prohibits the grant of ryotwari pattas for private tanks or ooranis and mandates the cancellation of any patta erroneously or mistakenly issued over such water bodies.
    • Historical revenue records (such as the 1911 RSR Register) take precedence, and municipal zoning notifications (such as “Mixed Residential Zone” under the Town and Country Planning Act) cannot efface the statutory character of public water bodies or transfer ownership.
  • Administrative Fraud and Unauthorized Patta:
    • The 2011 order granting a ryotwari patta was marred by fabricated file numbers, absent jurisdictional reports, and clear administrative malpractices, justifying its annulment by the Commissioner of Land Administration.
  • Protection of Bona Fide Flat Buyers and Equitable Relief:
    • While upholding the state’s power to reclaim water bodies and dismissing the appeals, the Court severely criticized state authorities and municipal bodies whose flawed revenue alterations and building approvals misled innocent purchasers.
    • To prevent severe financial injury and homelessness for families who purchased flats in good faith, the Supreme Court directed the Chief Secretary of Tamil Nadu and the District Collector of Tiruvallur to allot a vacant, commensurate alternative site to the flat owners’ association within six months prior to the demolition of the 0.22-acre construction.
  • Remedies and Final Outcome:
    • The civil appeals filed by the flat buyer and the mortgagee bank were dismissed.
    • The flat owners and the bank were granted liberty to pursue independent civil and criminal remedies for compensation against the developer, landowner, and mortgagor.
    • The State Government was granted freedom to conclude disciplinary and criminal proceedings against erring officials complicit in the fraudulent patta grant.

2026 INSC 1146

S. Gururaj v. The Additional Chief Secretary/Commissioner of Land Administration and Others (D.O.J. 16.10.2026)

2026 INSC 1146 click here to view full text of judgment

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Enhancing Compensation for Severe Motor Accident Disabilities

October 18, 2026 No Comments

These civil appeals arose from a common judgment of the Kerala High Court modifying a Motor Accident Claims Tribunal award concerning a severe accident on October 22, 2016, involving two scooter riders. The first appellant (Sunil Kumar, a pillion rider) suffered debilitating head injuries resulting in total dependency, while the second appellant (Sreejith K.S., the driver) suffered multiple fractures and nerve injuries affecting his arm. Dissatisfied with the extent of enhancement granted by the High Court, both claimants approached the Supreme Court.

The Supreme Court allowed the appeals and substantially enhanced the compensation for both appellants. The Court held that when injuries cause cognitive dysfunction or total loss of earning capacity, assessment must shift from strict medical disability percentages to 100% functional disability. Furthermore, the Court established that future attendant/bystander charges for lifelong care must be calculated using the multiplier method, and recognized additional compensation for loss of marriage prospects in young injured claimants.

  • Functional Disability vs. Medical Disability:
    • Reaffirming principles from Shankar Dutt and Jithendran, the Supreme Court emphasized that courts must evaluate the real-world impact of injuries on an individual’s earning capacity and daily life rather than relying solely on medical board percentages.
    • For the first appellant (pillion rider), despite a 75.5% medical disability certificate, his severe head and brain injuries rendered him totally dependent for life, justifying a 100% functional disability For the second appellant (driver), functional disability was assessed at 80% due to permanent impairment of his arm.
  • Multiplier Method for Attendant/Bystander Charges:
    • Rejecting inadequate lump-sum bystander awards, the Court ruled that lifelong attendant charges must be factored using the multiplier method (matching the appropriate multiplier for the claimant’s age), as it effectively accounts for inflation, wage growth, and longevity.
  • Loss of Marriage Prospects:
    • Recognizing that the second appellant was an energetic 22-year-old youth at the time of the accident, the Court awarded 5,00,000/- specifically under the head of loss of future prospects of marriage, following the precedent in Raj Kumar v. Ajay Kumar.
  • Future Medical Expenses:
    • The Court upheld and reasonably scaled up future medical expenses to 10,00,000/- for the first appellant and Rs. 8,00,000/- for the second appellant to cover continuous long-term medical care.
  • Final Compensation and Directions:
    • First Appellant (Sunil Kumar): Total compensation was enhanced to 77,84,394/-, resulting in an additional payable amount of Rs. 41,61,750/-.
    • Second Appellant (Sreejith K.S.): Total compensation was enhanced to 69,60,880/-, resulting in an additional payable amount of Rs. 41,90,216/-.
    • The insurance company was directed to deposit the enhanced amounts with 5% interest per annum from the date of the claim petition within 6 weeks for direct bank transfer by the Tribunal.
2026 INSC 1145
Sunil Kumar (Totally Disable Rep. by Wife) v. IFFCO Tokio General Insurance Company Ltd. (D.O.J. 15.10.2026)

2026 INSC 1145 click here to view full text of judgment

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Guardianship vs. Usurpation: Striking Down Illegal Gifts of Temple Inam Land to the State

October 18, 2026 No Comments

These appeals, filed by devotees of the Nagapalayam Mariamman-Ponnachiamman Temple, challenged the Madras High Court’s dismissal of a writ petition concerning the alienation of temple property. A temporary trustee of the temple had executed a gift deed on August 30, 2017, transferring 1 acre and 10 cents of temple inam land to the Government of Tamil Nadu for the construction of a Taluk Office. The Supreme Court allowed the appeals, set aside the High Court’s order, and declared the gift deed null and void. The Court held that the State, acting as a statutory custodian under the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, cannot accept gifts of temple property or convert its role as a protector into a beneficiary. Although the Court declined to demolish the Taluk Office building constructed with public funds, it ordered the State to pay a revised monthly lease rent with arrears and penalized the State with costs for defending an unlawful transaction.

  • Character of Temple Property and Statutory Bar:
    • The subject land was an inam land granted for the support and maintenance of the deity under Inam Title Deed No. 388.
    • Under Section 41(1) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 (1959 Act), a gift of an inam property is expressly declared null and void, and unlike other transactions, the statute consciously withholds any possibility of subsequent validation or sanction for a gift.
    • Registration of the gift deed was also barred under Section 22-A of the Registration Act, 1908.
  • Fiduciary Duty of Trustees and Role of the State:
    • Trustees (whether permanent or temporary) are bound by Sections 27 and 28 of the 1959 Act to manage temple assets with ordinary prudence and fidelity; a gratuitous gift confers no benefit on the institution and violates their fiduciary duty.
    • The State is a statutory custodian and regulator of religious properties, not an owner; accepting a gift of temple land under the guise of administrative convenience or public purpose offends the 1959 Act.
  • Condemnation of State Conduct:
    • The Supreme Court strongly criticized the State Government for aggressively defending the invalid gift deed across judicial forums for years and only conceding its illegality after being specifically directed by the Supreme Court.
  • Equitable Relief and Lease Arrangements:
    • Because a public Taluk Office building had already been constructed on the land using public funds, the Court refused to annul the lease entirely.
    • However, applying the formula established by the Fair Rent Committee and government orders based on local market values (Rs. 167/- per sq. ft.), the Supreme Court enhanced and rounded off the monthly lease rent to 31,000/- per month, payable with arrears from March 8, 2019, to be revised every three years under Section 34-A.
  • Final Directions and Costs:
    • The Supreme Court set aside the High Court’s order, declared the gift deed void, ordered the State to pay arrears of rent within three months, and imposed costs of Rs. 1,00,000/- on the State payable to the Temple.

2026 INSC 1144

K. Ramalingam and Others v. Government of Tamil Nadu Rep. by its Secretary and Others (D.O.J. 16.10.2026)

2026 INSC 1144 click here to view full text of judgment

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