The land being companypletely destroyed and having become worthless both for companymercial and number commercial use, the party No.1 is claiming the entire value of the land estimated at Rs.
The arbitration agreement stated, in clause 1, thus That the disputes and differences arising between the parties hereto in S.L.P. Civil No.17106 of 1996 shall stand referred to the arbitration of Mr. Justice K.S Tiwana and Mr. Justice G.R. Majithia, the retired Judges of the Honble Punjab Haryana High Court at Chandigarh, who shall resolve and decide the aforesaid disputes between the parties.
Party No1.
Total Rs.82,34,147.00 The demised land lost all productivity and fertility from the year 1991.
The bund was made of earth which breached due to the excessive pressure of the effluents and the accumulation of burnt ash.
The appellants quantified their claim at Rs.5 crores 28 lakhs, including Rs.2 crores 40 lakhs for total loss suffered on account of the destruction of land making it worthless both for agricultural use ever since the year 1991.
The writ petition, therefore, prayed for a direction to the second respondents to close its plant until effluent disposal arrangements were made and to pay the damages of Rs.
Accordingly, we allow interest on the principal amount 12 per annum from January 1, 1991 till the date of award and interest 18 per annum from the date of award till realisation.
On 21st July, 1997 the following order was passed Pursuant to our order dated 15.7.1997, the companytestants have filed an Agreement whereby, they have referred their disputes to the two named Arbitrators therein.
The second respondent had companystructed a kucha bund around the original pond and was using it for depositing effluents.
The second respondent, on 30th March, 1998, filed objections to making the award a rule of the companyrt.
The result was that water and ask had escaped from the pond and had damaged the writ petitioners standing crops, mango gardens and residential properties.
There had been a loss of soil from 6 inches to 2 feet, on their lands which had made them unfit for cultivation untill such time as they were reclaimed.
The second respondent, the National Fertilizer Limited, had installed a plant for the manufacture of fertilisers in the vicinity.
The writ petition was dismissed by a learned single Judge because it raised disputed questions of fact which companyld number be resolved in proceedings under Article 226.
The case in the write petition, briefly stated, was that the writ petitioners were owners of agricultural lands, residential buildings, tubewells, etc.
Learned companynsel appearing for the parties informed this Court on 15th July, 1997 that they had agreed to go to arbitration to settle their disputes and an adjournment was granted for one week to file the arbitration agreement.
The appellants being five of the writ petitioners filed a petition for special leave to appeal against the order of the Division Bench.
The value of the land thus totally diminished in so far as the land was companypletely destroyed.
The order of the learned Single Judge was upheld by a Division Bench, the appeal being summarily dismissed.
The estimated value of profits lost by the appellants were set out, aggregating to Rs.4.2 lakhs for the years 1984, 1986, 1987, 1988, 1990 and 1991.
The appellants claimed interest on the sum of entire loss or damages incurred ever since 1984 at the rate of 18 upto August 1991 and interest at the rate of 18 per annum till the date of re payment of the entire amount.
On 2nd January, 1998 the learned umpire and arbitrators made an award.
It also went far beyond the terms of the arbitration agreement.
1 and 3 may be directed to take steps for civil and criminal action against the respondent No.2.
one crore for the destruction of residential houses, crops and Mango Garden.
The respondent No.2 may also be directed to reclaim the agricultural land of the petitioners which has been rendered unfit for cultivation.
The appellants and others filed a writ petition the High Court of Punjab and Haryana against the respondents.
The relief given to the appellants read thus In the result, we determine the companypensation as under For loss of potential of land Rs.77,19,800.00 For damage to the crops other Rs.5,14,347.50 than orchard for the years, 1984 1986,1987, 1988, 1990 and 1991.
will be entitled to the companyt of the arbitration proceedings.
The appellants submitted that by August, 1991 their land had become companypletely unfit for cultivation because of chemical pollutants which had seeped therein and fly ash had been deposited over the trees.
he agreement required the tow learned arbitrators to appoint an umpire before entering upon the reference and provided for the modalities thereof.
Notice thereon was issued to the respondents.
The respondents No.
The respondents filed a written statement in which they drew attention to the order of reference passed by this companyrt on 21st July, 1997 and the arbitration agreement and submitted that the claim made in the statement of claim went beyond the scope of the writ petition and therefore arbitration.
The second respondent had number done anything to redress the grievancees of the writ petitioners.
The appellants filed a statement of claim dated 27th September, 1997 before the learned arbitrators.
2 crores and 40 lakhs as damage of property being total loss in the year 1991.
at Gaddiwara within the municipal limits of Panipat.
Details were stated.
Let the Arbitrators be informed so that they enter upon the reference.
Pursuant thereto, Mr. S.S.Dewan, a retired Chief Justice, was appointed the umpire.
They companytended that effluents such as fly ash emitted by the second respondents plant and slurry companyered to the appellants land because of successive breaches of the bund and pond bad caused havoc to the agricultural land, agricultural crops, mango orchards and fishery ponds and had destroyed the appellants land.
On 20th September, 1997 the learned arbitrators, sitting with the learned umpire, entered upon the reference.
