USHA MALHOTRA Vs. G S UPPAL

JUDGEMENT

(1.) By this order, I propose to dispose of (i) a petition filed u/S. 20 of the Arbitration Act (the'Act'), it being Suit No. 453-A of 1986, by Gurbaksh Singh Uppal and his wife Smt. Raj Kaur Uppal ('Uppals'), the two petitioners against the sole respondent, Smt. Usha Malhotra, and (ii) an application, being I.A. 5831 of 1989, u/S. 34 of the Act, filed again by Uppals, the defendants in a suit (Suit No. 2354 of 1988) for specific performance of an agreement to sell filed by Usha Malhotra.

(2.) The disputes between the parties concern property No. A-14/4, Vasant Vihar. The plot which measures 413 square Yards was held on perpetual leasehold basis by Uppals from a Society which had developed the colony. In fact, the society was the lessee, with the President of India as the lessor, and the Uppals as the sub-lessees. In the petitions, Uppals say that since under the sub-lease they were required to erect a building they, with that view, entered into an agreement of construction dated 1.8.1978 with Usha Malhotra. Under this agreement, a sum of Rs. 42,000.00 was deposited by Usha Malhotra with Uppals. Certain terms of the construction agreement have then been set out in the petition. This construction agreement contained an arbitration clause, which is : 'That in the event of any dispute arising out of this agreement whether as to interpretation of various clauses or meaning or any works or touching the rights and obligations of the parties whatsoever the matter shall be referred to an arbitrator whose decision shall be final and binding on the parties subject to the provision that the decision of the arbitrator is within frame work of and in consonance with the spirit and letter of the terms, provisions and conditions of this agreement'.

(3.) Uppals say that since the disputes have arisen between the parties, these have to be referred to arbitration in terms of the aforesaid arbitration agreement. These disputes, which the Uppals claim to have arisen, are : '(a) Whether respondent has obtained a completion certificate from the Delhi Development Authority certifying that the building has been completed in accordance with the terms and conditions of the lease and sent intimation thereof to the petitioners ; (b) Whether the respondent has worked out and determined the cost of construction in accordance with para 3 of the agreement and intimated the same to the petitioners ; (c) Whether the respondent is liable to restore the possession of the land and the building constructed thereon, to the petitioners, on receipt of the amount of Rs. 2,50,000 plus 25% profit on the said amount and on refund of the security money of Rs. 42,000.00?