NARINDER SAXENA Vs. MEENU SAHNI

JUDGEMENT

(1.) The respondent is the owner of property bearing No. A-13, Vikas Puri, New Delhi. The petitioner and the respondent entered into an Agreement to Sell/Purchase on 26.7.1997 for the petitioner to purchase the property on the terms and conditions set out in the Agreement. The Agreement contained an Arbitration Clause. The transaction ultimately did not mature and in view of the disputes between the parties, the petitioner filed proceedings before this Court seeking a reference of disputes to Arbitration. In terms of order dated 20.3.2001 Justice A.K. Srivastava, (Retired) was appointed as the Sole Arbitrator. The Arbitrator entered upon reference and made and published his award dated 11.3.2003. The petitioner aggrieved by the same has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the said Act).

(2.) The Agreement to Sell/Purchase stipulated the total consideration of Rs.79 lakh out of which Rs.10 lakh was to paid by the petitioner as earnest money. The Agreement also provided that a sum of Rs.5 lakh would be paid on 10.8.1997 and Rs.45 lakh on 26.10.1997, when the respondent was required to execute the sale documents in favour of the petitioner or his nominee. The time period for completion of the transaction was stipulated up to 31.12.1997. The vacant physical possession of the basement and second floor was to be delivered at the time of registration of the sale document and the balance portion was to be delivered on receipt of the remaining consideration of Rs.19 lakh.

(3.) The penalty clause in the Agreement stipulated that in case the petitioner defaults, the respondent was liable to forfeit the amount of Rs.10 lakh, while for the default of the respondent double the amount was liable to be paid to the petitioner amounting to Rs.20 lakh.