CAPRIHANS INDIA LIMITED Vs. HINDOOSTAN MILLS LIMITED

JUDGEMENT

(1.) Petitioner is impugning under Section 34 of the Arbitration and Conciliation Act 1996 (the said Act) part of the Majority Arbitral Award dated 20th October 2016 . Petitioner was claimant and respondent was respondent before the Arbitral Tribunal comprising of three Retired Judges.

(2.) Respondent owned several immovable properties, one of which was a plot of land admeasuring 6754.52 sq.mtrs at Byculla, Mumbai (the said land).. Respondent wanted to develop the said land and therefore approached. one Kalpataru Construction Overseas Private Limited ("KCOPL") and entered into a Project Management Agreement dated 28 th July 1993 (PMA). Under the PMA, KCOPL would function as a Project Management Consultant (PMC). Petitioner also forms part of the same Meera Jadhav group to which KCOPL belonged. Respondent entered into a development agreement dated 29th October 1993 with Petitioner where under respondent granted the development rights of the said land to Petitioner. Under the development agreement, Petitioner was to pay a sum of Rs.19,89,12,000/- towards land value and also allot 23,365 sq.ft. of area subject to reimbursement of actual cost of construction. It is stated that Petitioner paid to respondent towards land cost an amount of Rs.18,14,16,200/-, while amount of Rs.1,47,95,800/- was still payable. Petitioner allotted 12 flats including one penthouse and two duplex flats having total area of 23,365 sq.ft. to respondent. Petitioner also gave 13 covered car-parking slots in the podium area.

(3.) According to Petitioner, actual cost of construction pro-rata for the area allotted was Rs.7,26,00,000/- and further a sum of Rs.30,85,898/- towards property tax and maintenance charges along with interest which it had to recover from respondent.