RANJEET COMBINE Vs. B N KHANNA

JUDGEMENT

(1.) Petitioner has filed this petition (A.A. 18/99) under Sections 8, 9 & 11 of the Arbitration Act, 1996 (for short the Act) for appointment of an Arbitrator for deciding the disputes arising between the parties out of agreement of collaboration.

(2.) The facts are that the respondent was a member of the Diplomatic Enclave. Extension Co-operative Housing Building Society Ltd. (for short the Society). He was not allotted a plot of land; and it appears that on his writ petition, this Court on 28.2.1991 had directed the Society to carve out and allot a plot of land measuring 400 sq. yards to him. That order was upheld by the Supreme Court on 29.1.1992. The plot was not allotted and on 6.11.1992 this Court in C.C.P. 175/91 again gave directions. Before the plot of land was actually allotted, the petitioner and respondent entered into an agreement of collaboration on 29th March, 1993 (the date and month of the agreement have not been given in the copy placed on record. However, learned Counsel state that it was entered into on 29.3.1993). The agreement provided that on the possession of the plot being delivered, the petitioner will construct residential dwelling units on ground floor, first floor, second floor and basement with servant quarters on top floor at his own cost and expenses after obtaining requisite permissions, sanctions and approvals of all the concerned Authorities in the name of the respondent. The petitioner was to pay to the respondent Rs. 45 lakhs in the three instalments - Rs. 7.50 lakhs at the time of the execution of the agreement, Rs. 20.00 lakhs at the time of delivery of the possession to him, and remaining Rs. 17.50 lakhs at the time the building plan was sanctioned. In consideration thereof, the respondent had agreed to sell to the petitioner or his nominee rights in respect of first floor and second floor with terrace and proportionate land rights. The petitioner could enter into agreements to sell with prospective buyers in respect of flats to be built on first and second floors during or after the building was completed and the respondent would join in such agreement/conveyance. In Clause 7 in was also agreed that:

(3.) It is the case of the petitioner that first instalment of Rs. 7.5 lakhs was paid by him to the respondent at the time of execution of the aforesaid agreement. Thereafter the petitioner kept making inquiry from the respondent as to when he would get the possession of the plot but the respondent did not disclose it. In December, 1998 he came to know that plot No. 4-A, West End Colony, New Delhi was allotted to respondent by the DDA and the respondent was carrying out construction thereon after getting building plan sanctioned clandestinely in or about February, 1997 in breach of the agreement. He approached the respondent and offered Rs. 20 lakhs as agreed and asked to hand over the possession of the plot for construction by him but the respondent refused it and has committed breach of the agreement.