1. This appeal is directed against the order dated 31.03.2022 passed
by the learned Commercial Court, whereby, in exercise of jurisdiction
under Section 34 of the Arbitration and Conciliation Act, 1996 (for short
“the Act of 1996”), the objections preferred by the respondent-
Corporation were allowed and the arbitral award dated 12.02.2018
made by the learned Sole Arbitrator was set aside.
2. The appellant company applied to the Rajasthan State Industrial
Development and Investment Corporation Ltd. (RIICO) for allotment of
(Uploaded on 07/08/2026 at 10:49:00 AM)
[2026:RJ-JP:29646-DB] (2 of 16) [CMA-1170/2022]
an industrial plot for establishing a unit for “Service Station & Body
Building of Executive CC”. By allotment letter dated 14.12.2011, RIICO
allotted Plot No. SP-2033(B), admeasuring 4834.35 square metres,
situated at Ramchandrapura, EPIP, Sitapura Industrial Area, Jaipur,
under Rule 3(W) of the RIICO Disposal of Land Rules, 1979 (for short
“the Rules of 1979”). The allotment obliged the appellant to complete
construction and commence commercial production within the stipulated
period, and to raise construction in conformity with the approved site
plan and the applicable building bye-laws. Possession of the plot was
delivered on 09.04.2012, and a lease deed for a period of ninety-nine
years was executed between the parties on 27.09.2012.
2.1 Even before taking possession, the appellant, by its letter dated
20.12.2011, pointed out discrepancies in the original site plan, stating
that the setbacks depicted therein rendered the project unviable. RIICO
thereupon issued a revised site plan on 31.08.2012, modifying the
setbacks. The industrial area was subsequently declared a “Developed
Area” by RIICO vide office order dated 07.08.2013. In the interregnum,
RIICO addressed communications to the appellant regarding progress of
construction, including letters dated 08.11.2012 and 17.04.2013, while
the appellant’s request for extension of time made by letter dated
30.05.2013 was declined by RIICO on 15.07.2013.
