BINNY LIMITED Vs. SPR CONSTRUCTION PRIVATE LIMITED

JUDGEMENT

(1.) All these appeals have been filed under Sec. 37 of the Arbitration and Conciliation Act, challenging the order passed by the learned single Judge in exercise of jurisdiction under Sec. 9 of the Arbitration and Conciliation Act, 1996 (herein after referred to as Act).

(2.) The proceedings stemmed out of a Joint Development Agreement entered into between the appellant and the 1st respondent for development of the land measuring about 63 acres situate in North Chennai. An irrevocable Power of Attorney was also executed by the appellant / land owner on 29/6/2015 to enable the developer to carry out necessary works for developments. There was an amendment to the joint development agreement on 22/2/2018 and pursuant to the same, a new Power of Attorney, which was also irrevocable, was executed on 22/2/2018. The parties had agreed to share the proceeds of the sale at 60:40, i.e., while the developer would take 60% of the sale proceeds, 40% of the sale proceeds would go to the owner / appellant herein. The period of the project was agreed at 9 years due to the very size of the project and the combursome procedure that is to be undergone in obtaining planning permission from the Development Control Authorities namely, the Chennai Metropolitan Development Authority and the Chennai Corporation. An approval by the Government is also mandatory because of the nature of the development involved.

(3.) While things were going smoothly for almost five years, certain fissures appeared in the relationship between the parties to the Joint Development Agreement, which led to cancellation of the Power of Attorney by the land owner / appellant herein on 13/2/2023. This led to the respondent moving the Court under Sec. 9 of the Act on 22/2/2023 with prayers for injunction. Three applications were filed in O.A.Nos.127 to 129 of 2003 seeking the following prayers:-