B KAMALA DEVI Vs. MEHTA BUILDERS

JUDGEMENT

(1.) This Civil Revision Petition is directed against the order dated 16-11-1999 passed in LA. No.1226 of 1997 in O.S. No.3204 of 1997 on the file of the X Junior Civil Judge, City Civil Court, Hyderabad under which the learned Judge allowed the application filed on behalf of the defendant under Sec. 8 of the Arbitration and Conciliation Act, 1986 (sic. 1996) to refer the parties to arbitration in terms of the agreement between the parties. The suit O.S. No.3204 of 1997 was filed by the petitioners herein for perpetual injunction restraining the defendant from carrying on the construction in the multi storeyed complex of three floors contrary to Municipal sanction.

(2.) The parties shall be referred to as they are arrayed in the trial Court.

(3.) The facts in brief leading to this controversy may be stated as follows: The plaintiffs entered into an agreement with the defendant-Builders for developing certain property. In terms of the agreement three floors have been constructed in the complex planned by the defendant- Builders. The agreement provides that on the terrace of the third floor, the defendant- Builder shall be entitled to construct his office. It also provides that if further floors are sought to be constructed, then the parties shall have the same rights in the additional construction as per the agreement namely in the proportion of 45% to the plaintiffs and 55% to the defendant- Builder. This suit in question has been filed for the limited relief restraining the defendant-Builder from undertaking construction contrary to the Municipal sanction. Before the defendants filed their written statements, the present application in LA. No.1226 of 1996 was filed for referring the matter to the arbitrator in terms of clause 15 of the agreement between the parties. The agreement itself is not disputed. On this application the Junior Civil Judge passed impugned order directing the matter to be referred to the arbitrator with a direction that the arbitrator shall pass an award within one month in terms of explanation to Section 8 of Arbitration Act.