ROYALE CHENNAI REALTORS Vs. VGN DEVELOPERS PVT. LTD.

JUDGEMENT

(1.) This petition is filed under Section 34 of the Arbitration and Conciliation Act , 1996 (the Arbitration Act ) to set aside the Arbitral Award dated 04.01.2017 (the Award).

(2.) The dispute arises out of an Agreement of Sale dated 25.06.2010 (the Agreement), which was executed by the parties to this petition. After the execution of the Agreement, the vendors were unable to clear the defects in title that were specified in the Agreement and therefore, supplementary agreements were executed on 24.08.2010, 25.10.2010, 24.03.2011 and 25.06.2011. However, the said defects in title/encumbrances could not be removed. In these circumstances, by letter dated 21.08.2012, the Petitioners confirmed that the advance sale consideration would be refunded as per the schedule of repayment set out in the said letter.

(3.) This assurance was admittedly not complied with. Therefore, a police complaint was given by the first Respondent on 26.11.2012 and a FIR was registered on 24.12.2012. Subsequently, in proceedings before this Court in Crl.O.P.No.30114 of 2012, the dispute was referred to the Mediation Centre annexed to this Court and this resulted in a Mediation Interim Agreement dated 16.04.2013 (the Mediation Agreement), whereby the Petitioner agreed to repay a sum of Rs.14.50 crores as per the schedule of repayment set out in clause I thereto. Once again, this undertaking was not complied with. Mean while, by notice dated 05.03.2013, the first Respondent, through its lawyer, terminated the Agreement and invoked the arbitration clause contained therein. In the arbitration proceedings, the first Respondent prayed for an award for a sum of Rs.29,01,57,261/- with interest thereon at 24% p.a.