LAKSHMI HOMES REP BY MR G GANESH, MANAGING PARTNER Vs. R PARAMESWARI AND JUSTICE S SIVASUBRAMANIAM (RETD ), SOLE ARBITRATOR

JUDGEMENT

(1.) This original petition-is filed under, Section 34(2)(iv) of the Arbitration and Conciliation Act,1996, to set aside the Arbitral Award dated 07.03.20S6 passed by the second respondent as a sole Arbitrator in so far as it relates to the direction issued against the petitioner to pay a sum of Rs. 99,438/- to the first respondent/claimant.

(2.) The petitioner being a builder, developed the property at Door No. 4-A in Survey No. 52 part, Jayaram Chetty Street, Thiruvanmiyur, Chennai 603041, Measutin an extent of 18.98 cents belong to one C. Gnanapraksh and the property at Door Nos. 16 and 17 Vembuliamman Koil Street, Thiruvanmiyur, Chennai 600041, comprised in Survey No. 50 51, and 55 of Thiruvanmiyur, village in the extent of 27.57 cents belonging to the first respondent/claimant and four others in the name of Thiruvanmiyur project. A memorandum of joint development agreement dated 01.05.2001 was entered between the parties. According to the petitioner, he has taken efforts for the said joint development of two properties. The owner of Survey No. 52(part) was to retain 3.000 sq.ft. of building area in the form fo three flats in the said project. The owners of Survey Nos. 50, 51, and 55, viz., P. Krishnan and Mrs. V. Nageswari have agreed to retain a flat each in the extent of 900 sq.ft. In the above said project, while the other owners, viz., Mrs. Chitra Nageswaran, the first respondent/claimant and K.K. Gnanasekaran, opted to take a flat each towards their share in another completed project of the petitioner at No. 11, Gokilan Street, Seethapathi Nagar, Velachery, called velachery Project, apart from cash payment.

(3.) According to the petitioner, based on the said understanding the first respondent took possession of a flat measuring 750 sq.ft. at Velachery Project on entering into said agreement dated 01.06.2001, without waiting for the completion of Thiruvanniyur Project. According to the petitioner, the said property allotted to the first respondent/claimant in Velachery Project was a prime property. As per the joint development agreement marked as Ex. C.2 dated 01.06.2001, the petitioner has allotted the said flat at Velachery to the first respondent/claimant and also paid the down payment of Rs. 2,40,000/- on various dates. However, when the last, amount of Rs. 10,000/- was tendered, the first respondent refused to receive the same and therefore, the petitioner has fulfilled the obligation as per the agreement. The first respondent/claimant has raised a dispute that she is entitled to a larger share in Thiruvanmiyur Project and therefore, claimed an amount of Rs. 13,94,560/- as the amount payable to her with interest.