SAIPRIYA ESTATES Vs. V V L SUJATHA

JUDGEMENT

(1.) THIS Writ Petition is filed for a Writ of prohibition to prohibit the District Consumer disputes Redressal Forum-Ill, Hyderabad (for short "the District Forum") from entertaining c. C. No. 1026 of 2007 and to direct the District forum to refer the dispute for Arbitration under Clause 15 of the Development agreement dated 21 -7-2005.

(2.) THE facts lie in a narrow compass. The petitioner and respondent No. 1 entered into a development Agreement on 21-7-2005, whereunder respondent No. 1 handed over 700 Sq. yards of open land for construction of a residential complex to the petitioner. The petitioner and respondent No. 1 agreed to share the constructed area in the ratio of 55:45 respectively. On the ground that the petitioner failed to carry out its part of contractual obligations under the said agreement, respondent No. 1 approached the district Forum by filing C. C. No. 1026 of 2007 under Section 12 of the Consumer Protection act, 1986 (for short "the 1986 Act") seeking the following reliefs:

(3.) THE petitioner filed I. A. No. 41 of 2008 before the District Forum under Section 8 (1)of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act") for referring the dispute for arbitration. In its application, the petitioner referred to and relied upon clause 15 of the agreement, which provides for settlement of disputes arising out of the said agreement through arbitration underthe provisions of the 1996 Act. The District Forum by order dated 26-2-2008 dismissed the said application. Assailing the same, the petitioner filed the present Writ Petition for the reliefs as mentioned above.