DHIRAJ LAKHAMASHI SHAH Vs. MADHAV HARI KARMARKAR

JUDGEMENT

(1.) This is a petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 (for short, "the Act") whereby an interim award dtd. 21/2/2020 passed by the learned sole arbitrator has been assailed. The operative portion of the award reads thus:-

(2.) Disputes and differences have arisen between the parties under a contract dtd. 10/6/2010 titled as "Indenture of Assignment" and two other agreements titled as "Permanent Alternate Accommodation Agreements" dtd. 15/6/2010 (for short, "PAAAs"). The disputes are in regard to a property admeasuring 835.88 sq. yards situated on Plot No.153-A of Dadar Matunga Estate which housed a building known as 'Nandadeep' and one more structure, standing thereon (hereinafter referred to as "the property").

(3.) In pursuance of these agreements, the respondents who are the owners of the said property, handed over the possession of the property to the petitioners for its redevelopment. The redevelopment of the property was to be undertaken as per and under the assignment agreement, whereunder the respondent was to be entitled to permanent alternate premises, as agreed under the said PAAA. Disputes had arisen between the parties as the petitioners as per the terms and conditions of the agreement had not commenced construction for more than three years, after entering into the said agreements. This caused the respondents to approach this Court by institution of a Civil Suit (Suit No.114 of 2015). In such suit, an interim order was passed by a learned Single Judge of this Court on 22/2/2019, recording a statement as made on behalf of the petitioners that no third party rights in respect of the property would be created by the petitioners pending the proceedings of the suit. Thereafter, by an order dtd. 23/7/2019 passed in the Suit, the disputes between the parties were referred for adjudication in arbitral proceedings. The statement as made on behalf of the petitioners and as noted above, was ordered to operate till the arbitral tribunal decides the interim application.