MKJ DEVELOPERS LIMITED Vs. GROWTH TECHNO PROJECTS LTD

JUDGEMENT

(1.) THIS order shall dispose of defendants' application under Section 8 of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator in terms of the Arbitration agreement between the parties.

(2.) THE plaintiff has filed the suit for recovery of a sum of rs. 1,22,76,094/- along with interest under Order XXXVII of the Code of the Civil procedure alleging inter alia that in the year 1999, plaintiff and its associate companies were looking for investment option in Delhi and defendant No. 2 represented himself to be a Director of defendant No. 1. It was represented that they were developing a residential complex in Shahdara and since defendants were looking for parties to invest in their project, the plaintiff and its associate companies were persuaded to invest by entering into agreement to sell. The plaintiff was represented that by an agreement of development dated 2nd april, 1987, the defendant No. 2 had acquired the rights of development of land measuring 323 Bigha 11 biswa and 17 biswassi in village Karkardooma, Shahdara, delhi. Devidayal Builders and Developers and defendant No. 2 entered into a development Collaboration Agreement dated 15th July, 1987 for the development, however, the development agreement was dissolved by a memorandum of understanding dated 26th May, 1989 whereby defendant No. 2 became absolute beneficiary of the development collaboration agreement dated 15th July, 1987 and all the rights of defendant No. 2 were assigned in favor of defendant No. 1 who became entitled for 38,00,000 sq. ft. . It was represented that the defendant no. 1 is entitled to sell or otherwise dispose of that area.

(3.) CONSEQUENTLY, the plaintiff and defendant No. 1 entered into 24 separate agreements for sell dated 18th April, 1999 for purchase of 24 flats in the residential complex. Under the said agreements to sell, the plaintiff paid to the defendant No. 1 an amount of Rs. 21,14,100/- towards part consideration for the 24 flats. It was categorically agreed between the plaintiff and the defendants that in the event of defendants' failure to obtain approved sanction plan from the appropriate authorities, it shall pay interest to the plaintiff on all amounts which the plaintiff has paid to the defendants as consideration for the purchase or any amount which shall be paid to the defendants on behalf of plaintiff along with interest at the rate of 24% per annum on quarterly rest. The plaintiff was also given liberty to terminate the agreement at any time by sending a communication to that effect and on termination, it was agreed that defendants shall refund all such amounts which will be paid by the plaintiff to the defendant no. 1 with interest at 24% per annum with quarterly rest.