FIRST POST Vs. R. VIJAYAMBAL

JUDGEMENT

(1.) The dispute is between a developer, the Petitioner herein, and the land owners, the Respondents herein. The Petitioner was also the claimant before the Arbitral Tribunal and the Respondents herein were the respondents therein. An Arbitral Award dtd. 7/3/2019(the Award) is challenged.

(2.) The Petitioner is a registered partnership firm, which is represented by one of its partners, Mr.V.Ramesh Kumar Reddy. The Petitioner and Respondents entered into a Joint Development Agreement dtd. 6/5/2015(the JDA) in relation to the development of lands situated in Old R.S.No.1 and New R.S.No.1/1, bearing Survey Nos.1/73, 1/74 at Injambakkam Village, Sholinganallur Taluk, Kancheepuram District of an aggregate extent of about 4.19 acres. As per the JDA, the developer had agreed to develop 20 plots and construct villas thereon. The sharing ratio under the JDA was 35% to the land owners and 65% to the developer. As a result, 7 out of the 20 plots were to be developed and handed over to the land owners and 13 plots were to be developed and retained or sold by the developer. Each villa was to have a built up area of about 4500 sq.ft. Such villa was envisaged to be a ground plus one construction. The entire construction cost was to be borne by the developer. The JDA envisaged that the developer would pay monetary consideration of Rs.4,20,00,000.00 in the manner specified in Clause 7 thereof. Out of the sums specified in Clause 7, the developer paid a sum of Rs.20,00,000.00 on 14/8/2014 and Rs.1,00,00,000.00 on the date of execution of the JDA. A further sum of Rs.2,00,00,000.00 in total was paid under multiple cheques between 18/5/2015 and 5/4/2016. Further payments of about Rs.4.85 crores also appear to have been made. Thus, in total, it appears that a sum of Rs.8,05,00,000.00 was paid by the developer to the land owners.

(3.) In connection with the implementation of the JDA, the land owners were required to and executed two irrevocable Powers of Attorney on 7/5/2015, which were registered as Document Nos.90 of 2015 and 3554 of 2015 at the SRO, Neelankarai. Pursuant to the JDA, the developer undertook development and construction work. According to the developer, three villas on Plot Nos.8,10 and 11 were fully constructed. As regards Plot Nos.1 and 20, the construction was midway. Out of the 13 plots, which were allotted to the share of the developer, three plots were sold by making use of the Powers of Attorney.