GAJULAPALLI CHENCHU REDDY Vs. KOYYANA JAYA LAKSHMI

JUDGEMENT

(1.) THIS is an Application moved seeking intervention for constituting the Arbitral tribunal and for referring the disputes between the parties for their resolution.

(2.) IT is the case of the Applicant that a memorandum of Understanding has been entered into by and between the Applicant and the sole Respondent on 25-04-2007 at visakhapatnam, whereunder the Applicant herein has offered to purchase lands of an extent of 49 acres situate at various survey numbers of Cheepurupalli Mandal, vijayanagaram District, from the respondent, at the rate of Rs. 4,60,000/- per acre. He has also paid a sum of Rs. 20. 00 lakhs, receipt of which money, the respondent has acknowledged in the Memorandum of understanding itself. The Memorandum of understanding required the respondent to get approval for the said 49 acres within 12 months time. The balance sale consideration is liable to be paid by the Applicant at the time of delivery of possession and execution of a regular sale deed. The respective mutual obligations arising therefrom have also been spelt out. Clause 9 of the said Memorandum of Understanding reads as under:

(3.) PURSUANT to the notice issued on 14-10-2008, the Respondent entered appearance in the matter and pointed out that there is no arbitration agreement between the parties for securing resolution of their disputes and that the procedure adopted by the applicant is not in conformity of the requirements of Section 11 of the Arbitration and Conciliation Act, 1996 (henceforth referred to as 'the Act'), to enable him invoke the jurisdiction of this Court.