MOHAMMED GAFOORUR RAHMAN Vs. J.M.ASSOCIATES

JUDGEMENT

(1.) Petitioner is a party to the Joint Development Agreement dated 10.01.2014. Clause No.22.3 of the said agreement provides for arbitration in case of any dispute or difference arising between the parties, in its interpretation, performance or any other matter covered under the said agreement. The said clause reads as under:-

(2.) It is the case of the petitioner that respondent / second party failed to complete construction work within the stipulated time. The construction was not completed even after more than four years from the date of sanction of the plan. As the development was left to go waste and the respondent had not fulfilled the terms and conditions relating to the specifications for the development as per the Joint Development Agreement and Supplemental Agreement, petitioner issued a legal notice to the respondent on 03.04.2017 demanding the respondent to fulfill his obligations. In spite of receipt of said notice, respondent failed to fulfill his obligations and hence, having no other choice, petitioner addressed two emails dated 23.04.2017 and 24.04.2017 to the respondent stating that since the petitioner and his wife's health condition was deteriorating, petitioner's family wanted to proceed with the construction work by themselves. Subsequently, a meeting was held on 09.05.2017 between the petitioner, respondent and other concerned persons to discuss modalities. Accordingly, petitioner proceeded with the construction on the schedule properties as per sanction plan and completed the same during September 2017.

(3.) According to the petitioner, towards expenses incurred by the petitioner and the payments made to different vendors for the purpose of completion of construction, the respondent was liable to refund a sum of Rs.29,51,202/-. Since the respondent failed to pay the above amount due to the petitioner as per the agreement, the petitioner issued a legal notice dated 26.03.2018 calling upon the respondent to refund the said amount with interest at the rate of 18% p.a. On receipt of said notice, respondent continued to make false promise of settlement and adjusted a sum of Rs.4,90,000/- that was due to the petitioner on behalf of the respondent towards other dues. However, entire payment having not been paid, the petitioner got issued an arbitration notice on 01.08.2018 informing the respondent that the petitioner intends to appoint Sri.S.Vivekananda, Advocate as the Sole Arbitrator to enter upon reference to adjudicate all the disputes that had arisen between the parties. Respondent did not respond to the said legal notice. Hence, the petitioner has presented the petition seeking appointment of Sole Arbitrator in terms of clause No.22.3 of the Joint Development Agreement.