VAKIL AHMED Vs. RAJ RANI BANSAL

JUDGEMENT

(1.) Petitioner and respondent had entered into agreement dated 12th October 1991 in respect of property bearing municipal No.2359 to 2363, Chuna Mandi, Pahar Ganj, Delhi. As per this agreement between the parties, the petitioner was to construct a building on land measuring 208.5 sq. yds. approximately, which was half of the aforesaid property. He had paid Rs.2 lacs to the respondents and was put into possession of vacant portion of the premises. However, for one reason or the other no construction was carried out. Ultimately, disputes arose between the parties. In the agreement one Mr. Yash Pal was named as the arbitrator and, therefore, disputes were referred to him. However, a petition was filed in this court for his removal and appointing an independent arbitrator being Suit No.524/94 which was allowed vide order dated 6th January 1997 and Mr. Justice P.K. Bahri, retired Judge of this Court, was appointed as the arbitrator. Parties appeared before the arbitrator and filed their respective pleadings. When the matter was at the stage of evidence and evidence of the petitioner had been recorded partly, the parties arrived at compromise. This compromise was recorded by the arbitrator on 30th January 1999. The compromise was arrived at on the following terms :-

(2.) To put in nutshell, as per the aforesaid terms, the petitioner was to make a payment of Rs.24 lacs to the respondents and the payments were to be made in instalments- (i) Rs.10 lacs on 10th March 1999, Rs.6.50 lacs on 27th March 1999 and balance amount of Rs.7.50 lacs at the time of execution and registration of sale deed.

(3.) In this also schedule was charted as per which sale deed was to be prepared by 30th March 1999 and it was to be registered by 2nd April 1999. Thus, respondent was to get balance amount of Rs.7.50 lacs by 2nd April 1999. The agreement further provided that in case petitioner failed to make the complete payment, then whatever payment is made by the petitioner to the respondent shall be refunded and the respondent shall also make further payment of Rs.5 lacs to the petitioner and on making this payment, possession of the property in question was to be handed over by the petitioner back to the respondent.