SHADANI BUILDERS Vs. BEGRAJ AGRAWAL

JUDGEMENT

(1.) THIS arbitration appeal under Section 37 (1) (b) of the arbitration and Conciliation Act, 1996 (for short `the Act, 1996') is directed against the order dated 30th June 2007 passed in Civil (Arbitration) Case No. 9-A/2007 whereby learned district Judge, Raipur has rejected the application of the appellant under Section 34 of the Act, 1996 for setting aside award dated 3-10-99 passed by the sole arbitrator.

(2.) THE case of the appellant, in brief, is that the appellant is a firm registered under the Partnership Act. The partners of the firm owned and possessed lands situated at village Boriya Kala, Tehsil and District Raipur. Thok Kirana vyapari Sangh, Gudiyari, Raipur entered into an agreement to purchase shops to be constructed on the above described land on the individual agreement. The rate of each shop was fixed at Rs. 2,50,000/ -. A sum of Rs. 50,000/- was payable during the construction period and balance of Rs. 2 lakhs with interest in 60 monthly installments commencing from the date of handing over possession.

(3.) THE appellant and respondent No. 1 entered into an agreement for construction of 500 shops at the rate of Rs. 140 per sq. ft. . The shops were to be constructed within 18 months. They entered into another agreement for construction of road. The dispute arose between the petitioner and the construction agency regarding construction and payment. Initially the dispute was resolved and accordingly, the terms of agreement were modified, however, dispute persisted. On the basis of report lodged by respondent No. 1 proceedings under Section 145 and 146 of the Code of Criminal Procedure (for short `the Code') were drawn and the Sub Divisional magistrate, vide order dated 24-10-96, attached 280 under construction shops and construction materials in Criminal case no. 25/96. The construction materials under attachment were handed over in the interim custody of one Lalit Kumar singhania.