TOWNSHIP PROMOTERSA REGISTERED PARTNERSHIP FIRM HAVING ITS OFFICE Vs. MANTRI PROMOTERS A REGISTERED PARTNERSHIP FIRM

JUDGEMENT

(1.) The petitioner filed the present Civil Miscellaneous Petition under the provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996 ('the Act' for short) for appointment of the sole Arbitrator to adjudicate the disputes between the parties, in terms of Clause-25 of the Joint Development Agreement ('JDA' for short) dated 30.3.2009 entered into between the parties as per Annexure-H.

(2.) It is the case of the petitioner that in the year 2004, Mantri Developers Private Limited entered into Memorandum of Understanding ('MoU') with the petitioner for development of the schedule property excluding Sy. No. 1B at Jakkur Plantation Village, Yelahanka Hobli, Bangalore North Taluk, Bangalore. However, Mantri Developers Private Limited was unable to implement the terms of the MoU and failed to commence the development of the property. On 9.1.2006 M/s Abhishek Developers, a partnership firm and a sister concern of Mantri Developers Private Limited entered into a Joint Development Agreement ('JDA' for short) dated 09.01.2006 and General Power of Attorney dated 09.01.2006 for the development of the schedule property excluding Sy. No.1B at Jakkur Plantation Village, Yelahanka Hobli, Bangalore North Taluk, Bangalore. The said partnership firm and the petitioner entered into a registered Supplemental JDA dated 14.12006 and power of Attorney dated 14.12006, wherein Survey No.1B, Block 41 situated at Jakkur Plantation Village, Yelahanka Hobli, Bangalore North Taluk, ad measuring 1 Acre was included for development.

(3.) It is further case of the petitioner that the said Abhishek Developers failed to commence development work within six months of execution of the 2006 JDA and the 2006 Supplemental JDA as stipulated in the said agreements. Therefore the petitioner issued a letter on 2.6.2008 to Abhishek Partnership firm rejecting the untenable reasons assigned by the said firm for the delay in commencement of development work and brought to the notice of the said firm that delay has resulted in adverse financial implications upon the petitioner. Considering the failure in commencing the development of the Schedule property, the petitioner was constrained to revoke the Powers of Attorney dated 09.01.2006 and 14.12.2006 as per Deed of Revocation dated 20.06.2008.