KARNATAKA INCOME-TAX Vs. SNEHA DEVELOPERS

JUDGEMENT

(1.) The petitioner filed the present civil miscellaneous petition under the provision of Section 11(6) of the Arbitration and Conciliation Act for appointment of a sole Arbitrator to adjudicate the dispute in terms of Clause 19 of the Memorandum of Understanding dated 20.04.2007 entered into between the parties.

(2.) It is the case of the petitioner that the petitioner is a Co-operative Society registered under the provisions of the Co-operative Societies Act. The respondents represented to the petitioner that they are the absolute owners in possession of all the properties bearing Sy.Nos.7/1, 7/2, 7/3 (New No.7/6, 7/2 and 7/8 respectively) totally measuring 5 acres 06 guntas situated in Bethanagere Village, Bidadi Hobli, Ramanagar Taluk, Bengaluru Rural District.

(3.) Accordingly, both the parties have entered into memorandum of understanding dated 20.04.2007 under which the respondents agreed to sell all the sites to be formed at the rate of Rs.325/- per square feet. The petitioner had paid Rs.25,00,000/- as advance by way of crossed cheque in favour of the respondents. It was further agreed that further payment of Rs.1,50,00,000/- within 45 days from the date of obtaining and furnishing the copy of the conversion order and Rs.1,25,00,000/- on commencement of development of the layout in not more than three installments and the balance amount was agreed to be paid on the date of execution and registration of the sale deed. Respondents also agreed to complete certain civil development works as per Clause 8 of the said agreement. But, by letter dated 27.08.2015, the respondents agreed to complete the work as per the agreement. Since the development was not completed, petitioner was forced to issue legal notice dated 24.06.2017 invoking Arbitration Clause. But no reply was received. Therefore, the petitioner is before this Court for the relief sought for.