MANISH NARENDRA PAREKH Vs. RISHIRAM GALTIRAM BHATT

JUDGEMENT

(1.) This petition is filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act") by the original claimant to challenge the award dtd. 30/12/2020 dismissing the claim, passed by the Arbitral Tribunal consisting of a sole arbitrator. The arbitral claim was for specific performance of a Development Agreement dtd. 8/12/2011 and, in the alternative, for damages.

(2.) Respondent no. 1 is the owner of an immovable property at Borivali, being Final Plot No.24 (Part), Off. TPS I, Borivali, bearing CTS No. 2413/21/1 to 19 situated at Village Eksar, Tal. Borivali, consisting of two structures on the said property, one being an old tenanted building named "Rishiram Nagar" and the other a building named "Prem Kutir" owned by a society. ("the said property"). According to the petitioner, respondent no. 1 was interested in developing his property; hence, there were negotiations between the petitioner and respondent no. 1 in the presence of respondent no. 2 to develop the property by demolishing the old structures and thereby constructing a new building thereon. It was agreed that the entire redevelopment work shall be carried out by the petitioner at his own cost, and thereafter, the petitioner shall provide 48% of the area to respondent no. 1 towards consideration for the said development rights. The terms and conditions were discussed, finalised, and agreed upon by the parties. Accordingly, a development agreement dated 8 th December 2011("the said agreement") was executed in the presence of respondent no. 2. It was mutually agreed that in the event there is any dispute, then in that case, the matter will be referred to respondent no. 2 for arbitration as per clause 40 of the said agreement.

(3.) At the time of execution of the said agreement, respondent no.1 insisted that the original agreement executed between the parties be kept with respondent no.2, and respondent no. 2 agreed to hand over the same to the petitioner. Two original agreements were executed, one for the petitioner and one for respondent no. 1. Both were kept with respondent no. 2, with an assurance that they would be handed over to the petitioner. However, when requested to hand over the original agreement for adjudication, respondent no. 2 informed that the petitioner should first find out the amount of stamp duty payable, and at the time of payment of stamp duty and registration, he shall bring the original agreement and hand it over to the petitioner for registration.