DISCOVERY PROPERTIES AND HOTELS PVT LTD Vs. CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD

JUDGEMENT

(1.) THE petitioner has invoked Section 9 of the Arbitration and Conciliation Act, 1996 (for short, the Act) and prayed as under:

(2.) THE basic events are as under: In 2007, respondent issued a Bid Document for lease of a plot bearing No. 16, Sector No.2, admeasuring 11,360 sq.mtrs. of Kharghar for Five Star Hotel. On 12.10.2007, the petitioner deposited Rs.2.5 crores as earnest money towards the submission of its bid. On 15.10.2007, the petitioner submitted bid. On 10.12.2007, the respondent accepted petitioner's bid and awarded lease vide a Letter of Acceptance (LOA).

(3.) ON 12.03.2009, the petitioner invoked the Arbitration Clause 44 in LOA; appointed MD of the respondent as an Arbitrator. The clause no.44 is as under: