P. SUNILKUMAR Vs. GREEN PEACE CONSTRUCTIONS (P) LTD.

JUDGEMENT

(1.) The petitioner instituted this petition under Section 11(6) read with Section 14(1)(a) and (b) and Section 15(1)(a) and 15(2) of the Arbitration and Conciliation Act, 1996 (in short, "the Act"). The prayer made is to appoint a Sole Arbitrator as substitute Arbitrator in the place of the erstwhile Arbitrator appointed by this Court and to direct the Arbitrator so appointed to commence the Arbitral Proceedings from the stage the proceedings had reached before the erstwhile Arbitral Tribunal.

(2.) The petitioners and the respondent entered into a Builder's Agreement dated 09.09.2011 (in short, "the Agreement") for purchasing a flat. Clause 4(i) of the Agreement contemplates 22 months for completion of the construction. Clause 20 enables the flat owners to cancel the booking and to seek for refund, which would be made with conditions and Clause 23 provides for settlement of dispute or difference by means of arbitration.

(3.) The petitioners, inter alia, claimed that they had parted with their hard-earned money of Rs. 50,00,000/- as booking advance, the respondent neither shown the progress in the construction nor approval of the competent authorities for the construction of the fourth floor, wherein, the petitioners booked their flat, i.e. Flat No. 4G. Hence, after 5 years from the date of the Agreement, the petitioner sent a letter dated 12.10.2016 cancelling the booking and sought for refund of the booking amount with interest, besides reserving their right to seek for compensation for mental agony. Since there was no response, they invoked the arbitration clause via notice dated 21.12.2016 The respondent failed to respond to this notice also.