U S RAJORA Vs. C K BEDI

JUDGEMENT

(1.) The challenge in these petitions under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') is to two Awards dated 5 th July 2006 of the sole Arbitrator in the disputes between the parties arising out of agreements entered into between them for development and construction of a building consisting of independent and self contained flats/apartments on a freehold plot of land admeasuring 1005 sq. yards at W-19, Greater Kailash-II, New Delhi.

(2.) An agreement dated 28 th September 1990 was entered into by Smt. C.K. Bedi with her real sister Smt. Gurdeep Kaur for the construction of a four storeyed building consisting of self contained residential flats/apartments on the said plot. On the basis of the aforesaid authority Smt. Gurdeep Kaur entered into an agreement dated 15 th October 1990 with the Petitioner Shri U.S.Rajora for development and construction of the building consisting of independent and self contained flats/apartments according to modern liking, design and architecture at the said plot. A Memorandum of Understanding ('MoU') dated 1 st November 1990 was also entered into between the Petitioner and Smt. C.K. Bedi recording that cost of construction was payable at the rate of Rs. 350 per sq. ft. of covered area on each floor. The Petitioner was also to be paid 50% of the amount earned by the owner.

(3.) Disputes arose between Smt. Bedi and Smt. Gurdeep Kaur. In terms of the settlement of such disputes, the agreement dated 15 th October 1990 between Shri Rajora and Smt. Gurdeep Kaur stood cancelled. A fresh agreement was entered into between Shri U.S. Rajora and Smt. C.K. Bedi on 19 th August 1992. Smt. Bedi had also executed a General Power of Attorney ('GPA') in favour of Shri U.S. Rajora. According to Shri Rajora, the construction work was started soon after sanction was obtained for the building plan. According to him, by the time the agreement dated 19 th August 1992 between him and Smt. Bedi was executed, most of the work except finishing work was completed. The total of 16 flats i.e., four flats on lower ground floor, four flats on the ground floor, four flats on the first floor and four flats on the second floor were constructed. One flat being G-1 was given by Smt. Bedi to Smt. Gurdeep Kaur. Another flat being F-4 was retained by Smt. Bedi for herself. The remaining 14 flats were sold by Smt. Bedi to different buyers in the beginning of 1993. According to Shri Rajora, the total covered area constructed by him was 15,364.63 sq. ft. for which Rs.350 per sq. ft. was payable by Smt. Bedi to Shri Rajora. He accordingly claimed that an amount of Rs.53,77,620 was payable to him by Smt. Bedi towards the cost of construction and Rs.56,61,188 being the 50% profit as per the agreement.