N SREENIVASA Vs. KUTTUKARAN MACHINE TOOLS LTD

JUDGEMENT

(1.) THIS petition is filed under section 11 (5) of the Arbitration and Conciliation Act, 1996, for short, hereinafter referred to as the 'act', for the appointment of an arbitrator to resolve the dispute between the parties.

(2.) THE case of the petitioner is that he entered into an agreement of sale dated 21st december, 2005 for purchase of the property bearing plot No. 19-A, Peenya II Phase, Industrial Area, which is morefully described in the schedule to the agreement of sale and for short, hereinafter referred to as the 'schedule property' for a consideration of Rs. 6,99. 04,079. 00. A copy of the agreement is produced as Annexure-A. Clause 9 of the said agreement provides for resolution of dispute arising out of the agreement by way of arbitration. It is his further case that in terms of the agreement, a sum of Rs. 2,00,00,250. 00 was paid by the petitioner to the respondent as advance by way of cheque, which has been duly encashed by the respondent. Sixty days' time was stipulated for completion of sale transaction.

(3.) ON 18-2-2006. the petitioner wrote a letter expressing his readiness and willingness to purchase the property and pay the balance sale consideration in terms of the agreement, and take possession of the property. The respondent sent a reply to the said letter stating that they are ready and willing to hand over vacant possession of the property agreed to be sold at the time of registration and there was no question of the same being vacant prior to the completion of the sale transaction. The respondent did not remove the machineries and the premises was not kept vacant. Those letters are produced as Annexures-B and C. In spite of repeated request, when the respondent did not perform his part of the contract, he was constrained to file a petition under section 9 of the Act for interim measures, which came to be allowed on 23-9-2006. Thereafter, he wrote a letter to the respondent on 28-8-2006 nominating one R. Ramaiah, as an arbitrator and requested the respondent to concur with the appointment of an arbitrator. The said letter has been duly served on the respondent. Annexure-D is the letter and Annexure-E is the acknowledgment. As the respondent did not comply with the demand made therein, he was constrained to file the present petition for appointment of an arbitrator.