SARIKA BHOOT Vs. SOUMITRA PROJECTS PRIVATE LIMITED

JUDGEMENT

(1.) The petitioner's application is under Sec. 11 of The Arbitration and Conciliation Act, 1996 for appointment of an arbitrator. The petitioner has prayed for the appointment by reason of disputes and differences having arisen between the petitioner and the respondent out of an agreement for sale dtd. 7/9/2012 and a Memorandum of Settlement dtd. 29/9/2016.

(2.) First, a brief statement of the background to the dispute.

(3.) The petitioner was interested in purchasing a flat in a multi-storeyed building complex constructed by the respondent in New Town, Kolkata. The parties executed an agreement for sale on 7/9/2012. This agreement for sale contained an arbitration clause at clause 18.1. The respondent, being the developer, however failed to deliver the flat on time which would be evident from the correspondence disclosed in the application from 30/10/2015 - 2/12/2015. The respondent could not make the flat ready for transfer and failed to honour the timelines fixed for delivery of the flats to the petitioner. The petitioner, through her lawyer, cancelled the agreement dtd. 7/9/2012 under cover of a letter dtd. 21/1/2016 which records the claims of the petitioner under various heads. The petitioner invoked the arbitration clause contained in the agreement dtd. 7/9/2012 by a letter dtd. 11/3/2016. The respondent's reply to the invocation on 22/3/2016 indicated that the flat was ready for delivery and there was no requirement to proceed with the arbitration. The respondent however failed to deliver possession of the flat to the petitioner.