MAHAVIR DEVELOPERS Vs. MAHAVIR JAINA VIDYALAYA

JUDGEMENT

(1.) This is a Petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 ("the Act") challenging an Arbitral Award dated October 1, 2019, as modified further on October 17, 2019 passed by a Learned Arbitral Tribunal comprising a sole arbitrator ("Impugned Award").

(2.) Petitioner No.1, Shri Mahavir Developers ("Developer") along with its Partners, Petitioner Nos.2 to 11 are aggrieved by the Impugned Award, which holds in favour of Respondent No. 1, Shri Mahavir Jaina Vidyalaya, a Public Charitable Trust ("Trust") of which, Respondent Nos.2 to 5 are Trustees ("Trustees"). Respondent No.6 and 7 are former Partners of the Developer.

(3.) The Developer and the Trustees had executed a Memorandum of Understanding dated April 9, 2005 ("MOU") followed by a Development Agreement dated April 30, 2007 ("Development Agreement"), by which, development rights were granted to the Developer over property owned by the Trust situated in Gowalia Tank, Mumbai ("Subject Property"). The Developer was to pay a consideration of Rs.3.69 Crores for grant of the development rights and contracted an obligation to construct a new Hostel Building ("Hostel") and a Jain Derasar ("Temple") with an area of not less than 32,000 square feet ("Agreed Area") in place of the existing Hostel Building which includes six shops, and the Temple. The Developer was to also reconstruct three tenanted buildings located on the Subject Property. The parties had agreed that the development would be carried out under Regulation 33(7) of the Development Control and Promotion Regulations 2034 ("DCR").