AKKAYYA CONSULTANCY SERVICES Vs. MFAR CONSTRUCTIONS PRIVATE LIMITED

JUDGEMENT

(1.) THE petitioner with an intention to build residential apartments at Bangalore was looking for a construction and infrastructure developer who would be capable of constructing and executing the project in accordance with the requirements. Suffice it to say that the respondent represented it had experience necessary skill and capacity to construct and implement the establishment of residential apartments. The respondent assured the petitioner of high quality and timely completion of work. The petitioner and respondent entered into construction contract agreement for construction of residential building known by the name "ACS � Vsundhara � II, consisting of two residential blocks namely Meghana and Shalini". The petitioner and respondent also further entered into memorandum of understanding in view of settling pending dues of the respondent. The petitioner offered as collateral seven apartments in Shalini and Meghana Blocks. The petitioner issued a letter to the respondent setting out the detailed causes for delay in completion of the project along with the statement of claims. The respondent issued untenable reply to the petitioner's letter. The case of the petitioner is that he invoked the arbitral clause having regard to the fact that certain claims remained unanswered and accordingly issued a notice. They also suggested their nominee. The respondent replied to the said notice indicating that the petitioner should release their outstanding dues including the interest as committed by them. Insofar as the arbitrator is concerned, it can be initiated after the dues certified by the petitioner are paid.

(2.) RESPONDENT is served and unrepresented.