TEJAL M PARIKH Vs. FATIMA NAZIRUDDIN BAGWAN

JUDGEMENT

(1.) This Civil Miscellaneous Petition is filed under Sec. 11(6) of the Arbitration and Conciliation Act, 1996, (hereinafter referred to as 'the Act' for short) seeking appointment of a sole Arbitrator in terms of the Arbitration Clause contained in registered Agreement of Sale dtd. 5/11/2015.

(2.) It is the contention of the petitioners that late Sri Milan M.Parikh, the husband of the first petitioner and father of the other two minor petitioners had entered into an agreement with the respondents. The respondents who owned various pieces of lands had earlier entered into a Joint Development Agreement with M/s.Golden Home Shelters Pvt. Ltd., a Company registered under the Companies Act, 1956, represented by its Managing Director, Sri Milan M.Parikh, to develop immovable property bearing CTS No.4/B and 5A/1, measuring about 4 acres 25 1/9 sq. yards, situated at Karwar Road, Hubli. In terms of a registered Deed of Declaration dtd. 5/11/2015, 23% of the built area approximately numbering 81 flats were identified to the share of the owners/respondents herein. The remaining 77% of the built- up area numbering approximately 282 flats were identified to the share of the developer.

(3.) On the same day, when the Deed of Declaration dtd. 5/11/2015 was registered, the respondents herein entered into an agreement of sale on 5/11/2015 offering 29 apartments to Sri Milan M.Parikh, Proprietor of Golden Home Trading Corporation, admitting the fact that in an independent transaction, the respondents herein owed a sum of Rs.5,50,00,000.00 to Sri Milan M.Parikh, Proprietor, Golden Home Trading Corporation. It was stated in the agreement that in lieu of the said sum of Rs.5,50,00,000.00 the respondents came forward to register 29 apartments which had fallen to their share in the Deed of Declaration dtd. 5/11/2015. However, it was also agreed that if the respondents herein did not repay the said sum of Rs.5,50,00,000.00 within 90 days from the date of execution of the Agreement of Sale dtd. 5/11/2015, they should execute sale deeds conveying the 29 flats in favour of Sri Milan M.Parikh, considering the fact that the entire sale consideration of Rs.5,50,00,000.00 at the rate of Rs.1,700.00 per sq. ft. was already paid by Sri Milan M.Parikh. The agreement provided for extension of the period within which the respondents could repay the entire amount along with an additional sum of Rs.99,00,000.00 within 90 days from the date of execution of the agreement of sale. The agreement also provided for a further extension of 180 days, subject to the respondents herein paying an additional sum of Rs.2,31,00,000.00 within the extended period. In all, the agreement provided for 360 days to the respondents to repay the said sum of Rs.5,50,00,000.00 along with the additional sum mentioned therein. Paragraph-6 of the Agreement of Sale makes it clear that after the expiry of 360 days, and on failure of the respondents to fulfill the conditions stipulated in the agreement, Sri Milan M.Parikh, could call upon the respondents to execute Deed of Conveyance either in his favour or in favour of his nominees, within 7 days from the date of expiry of the 360 days which were provided in the agreement. The agreement contains an arbitration clause in paragraph-10.