LAWS(BOM)-2015-3-28

SUMER BUILDERS PVT. LTD. Vs. NARENDRA GORANI

Decided On March 10, 2015
Sumer Builders Pvt. Ltd. Appellant
V/S
Narendra Gorani Respondents

JUDGEMENT

(1.) This Appeal takes exception to the order of the learned Single Judge dated 10 October 2013 under which the learned Single Judge revoked the leave granted under Clause XII of the Letters Patent to file a section 9 Petition under the provisions of the Arbitration and Conciliation Act, 1996 (for short "the Act").

(2.) The leave was initially granted on the basis that a material part of the cause of action has arisen within the jurisdiction of this Court, and therefore, on granting leave under Clause XII, this Court had jurisdiction to entertain the section 9 Petition. In a nutshell, vide the impugned order, the learned Judge upheld the contention of the Respondent that the dispute in the proposed arbitration between the parties was in respect of the land situated at Indore which was owned by the Respondent and which was to be developed by the Appellant. In other words, the learned Judge held that the dispute between the parties in the proposed arbitration would amount to a "suit for land" as envisaged under Clause XII of the Letters Patent, and therefore, the section 9 Petition could only be filed where the property was situated, which in the present case is at Indore. On this basis, the learned Single Judge revoked the leave granted by this Court. Hence the present Appeal.

(3.) The facts stated briefly are that under a development agreement dated 28 February 2008 registered with the Sub-registrar, Indore executed between the Respondent herein as the owner and the Appellant herein as the developer, the Appellant acquired developmental rights in respect of a property bearing Survey No.1487/1 and Survey No.1487/2, totally admeasuring 4.160 hectares situated at Kesar Bagh Road, Kasba Indore, Patwari, Halka No. 15/2, Tehsil, District Indore, Madhya Pradesh (hereinafter referred to as "the said land").