2001 (4) TMI 940 - SC - Indian Laws

Summary

Issues involved:
- Municipal Council's application for intervention in an arbitration case
- Rejection of the application by the High Court based on delay and laches
- Ownership and possession claims over disputed property
- Jurisdiction of the High Court of Calcutta in a matter related to property in Haryana

Analysis:

The Municipal Council, as the appellant, challenged the High Court's order rejecting its application to intervene in an arbitration case concerning disputed property. The Council claimed ownership and possession of the property, arguing that the High Court erred in dismissing the application based on delay and laches. The Council contended that the High Court lacked jurisdiction to pass orders on property situated in Haryana. The Court noted that the Council was not a party to the arbitration case or the earlier orders directing it to deliver possession of the property. The Court held that the High Court's rejection of the Council's application was a manifest error, as it adversely affected the Council's valuable rights over the property. The Court emphasized that the Council should have been allowed to intervene, especially considering it was not involved in the previous orders and was in possession of the disputed property.

The Court further stated that the High Court's decision was flawed as it denied the Council the opportunity to present its case. Consequently, the Court set aside the impugned order, allowed the Council's application for intervention, and remitted the case back to the High Court for a fresh disposal on its merits. The Court directed the High Court to provide a hearing to all parties, including the appellant Municipal Council, ensuring justice in accordance with the law. The appeal was disposed of with no costs awarded to any party.