C SHAMSUDDIN Vs. NOW REALTY VENTURES LLP

JUDGEMENT

(1.) This is a contested application under Section 11 of the Arbitration and Conciliation Act 1996. The relevant facts are these. The Applicant is an individual said to be engaged in the business of real estate development. The Respondent is a partnership firm constituted under the Limited Liability Partnership Act 2008. It was also earlier constituted under a different name. Respondents Nos. 2 and 3 are its partners.

(2.) Between 2009 and 2011, by a series of registered sale deeds, the Applicant acquired a tract of land of 36,224.5 sq mtr at Mouje Baner, Pune. The relevant records stand in the name of the Applicant. Given that this was a very large tract of land, the Applicant desired to identify a suitable entity for joint development. The Respondents expressed interest in this development. They owned the adjacent land. They desired to merge the two lands and jointly develop both. The 1st Respondent and the Applicant thus entered into a Joint Venture Agreement dated 18th April 2011. This is duly stamped and registered. The agreement provides that the Applicant is entitled to 48% of the revenue share from the development of the property. In consideration of doing the development work, the 1st Respondent was entitled to 52% of the revenue. It was for the 1st Respondent to obtain the necessary permissions and sanctions and to commence construction within the specified time. The 1st Respondent was to complete construction in 42 months from the date of commencement of the construction. A copy of agreement is at Annexure 'A' to the Petition.

(3.) Clause 14 of this agreement contains the Arbitration clause. It reads thus: 'CLAUSE 14: ARBITRATION COURT