AGRA DEVELOPMENT AUTHORITY Vs. AMARJEET PANNU

JUDGEMENT

(1.) This appeal under Section 39 (vi) of Arbitration Act, 1940 (hereinafter referred to as "Act 1940") has arisen from the judgement and order dated 27.01.2006 passed by Sri Grish Kumar Vaishya, Civil Judge (Sr. Div.), Agra (hereinafter referred to as Court below) in Civil Misc. Case Nos. 37 of 1997 (Smt. Amarjeet Pannu Vs. Agra Development Authority, Jaipur House, Agra through Secretary) and 38 of 1997 (Agra Development Authority, Agra through Secretary Vs. Smt. Amarjeet Pannu), rejecting objections filed by appellant against award dated 21.05.1997 and making said award Rule of the Court.

(2.) Smt. Amarjeet Pannu and Ldr. L.S. Pannu, Air Force Station, Kheria, Agra applied for allotment of certain commercial space at Sanjay Place commercial Complex, Agra on 08.09.1980 and deposited Rs. 78,000/- and 60,000/- for 8 units, i.e 4 units in basement and 4 units at third Floor. The Agra Development Authority (hereinafter referred to as A.D.A.) allotted aforesaid units i.e. 4 in basement and 4 on 3rd Floor in Sanjay Place Commercial Complex to Smt. Amarjeet Pannu and her husband Wing Commander L.S. Pannu, Air force Station, Kheria, Agra on 04.01.1981. Notice informing them about allotment and mode of payment was sent on 04.02.1981. As per allotment order, tentative cost of 4 units in basement was Rs. 3,08,000/- and 4 units on third Floor was Rs. 2,40,000/-. Allottees were supposed to pay 25% of the cost of units at the time of allotment and further 25% of cost 15 days before taking possession and balance 50% within four years in half yearly installments with interest at the rate of 16% per annum. Between 1980-1981 the said allottees further deposited a sum of Rs. 50,000/- and therefore, total deposit made by them was Rs. 1,88,000/- (78,000/- +60,000/- + 50,000/-). No further payment was made by allottees. A.D.A. issued notice on 15.01.1987, requiring allotttees to show cause why allotment made be not cancelled. Ultimately, allotment was cancelled on 24.04.1987. On 05.09.1989, appellant A.D.A., however, issued fresh notice proposing revival of allotment subject to condition of deposit of Rs. 4,17,161/- by the said allottees. The allottees, however, did not make any payment. They raised a dispute and made an application in the court below under Section 20 of Act, 1940 on 01.01.1990 for appointment of Arbitrator. The appellant though contested the application but Civil Judge appointed Sri S.C. Mangla as Arbitrator.

(3.) The statement of claim was filed by allottees on 03.04.1997 before Arbitrator, making following claims:-