SUDERSHAN KUMAR BHAYANA Vs. VINOD SETH

JUDGEMENT

(1.) The present cross appeals have been filed under Sec. 37(1)(c) of the Arbitration and Conciliation Act, 1996 (hereafter 'the A&C Act') impugning an order dtd. 15/4/2019 (hereafter 'the impugned order') passed by the learned Single Judge of this Court in OMP No.1125/2014 captioned Vinod Seth (deceased) through Kunal Seth and Anr. v. Sudershan Kumar Bhayana and Anr. The legal heirs of Sh. Vinod Seth [appellants in FAO(OS) No.204 of 2019 / respondents in FAO(OS) No.132 of 2019] had filed the aforesaid application under Sec. 34 of the A&C Act impugning an arbitral award dtd. 21/10/2013 (hereafter 'the impugned award') delivered by an Arbitral Tribunal comprising of a sole arbitrator. They took exception to the impugned award to the limited extent that the claims made by the respondents (their predecessor) were allowed, and to the extent that the counterclaims were not awarded in full.

(2.) The impugned award was rendered in the context of the disputes that had arisen in connection with the agreement dtd. 9/4/2010 (hereafter 'the Collaboration Agreement') in respect of a property described as 'three storied Built-up Property Bearing No. 40, in Block F-1U, Built on Land Measuring 242 Sq. Yds., Situated at Pitampura, Delhi, with the freehold rights of the land under the said property, with all facilities and easement therein' (hereafter 'the subject property') The Collaboration Agreement was entered into between Sh. Sudershan Kumar Bhayana and his wife Smt. Kiran Bhayana (hereafter 'the Owners') on one part, and Sh. Vinod Seth (hereafter 'the builder') on the second part.

(3.) In terms of the Collaboration Agreement, the builder had agreed to construct '1/3rd parking + 2/3 basement with guiniting work (water proofing), Upper ground floor, first floor, second floor and third floor with all fittings fixtures and finishing work as per A class construction.' after demolishing the extant building on the subject property. In addition, the builder also agreed to pay a sum of Rs.64,00,000.00 and bear the cost of construction. In consideration for the same, the Owners had agreed that the builder would retain the second floor without roof rights, in the building as reconstructed, and they would execute a registered sale deed in respect of the said floor, in his favour.