AERENS GOLDSOUK INTERNATIONAL LTD Vs. SAMIT KAVADIA AND

JUDGEMENT

(1.) THE present petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (in short the Act) for referring the matter to Sole Arbitrator to resolve the dispute between the petitioner and the respondents.

(2.) AS per the facts stated in the petition, the petitioner company having its registered office at Mumbai and Branch office at Jaipur engaged in the real Estate Business. The respondents 1 and 2 represented in the petitioner company that they are absolute and exclusive owner/lessee khatedar and in actual physical possession of 1. 50, 5. 16 and 0. 81 Hectares of land situated in village Nangal Susavatan, Amer Tehsil, Jaipur on Jaipur Delhi National Highway No. 8. Out of this land about 7. 33 Hectares land has been converted and approved as lease hold land for 99 years for use as Tourism related activities like Hotels, Motels, Resorts, Restaurant etc. By a Memorandum of understanding executed on April 3, 2004 it was agreed between the petitioner and the respondents 1 and 2 that the respondent No. 1 shall sell the said land with structure to the petitioner company at the rate of Rs. 17,25,000 per bigha. The respondent No. 2 on behalf of respondent No. 1 received a sum of Rs. 1,00,000 in cash and Rs. 4,00,000/- vide cheque dated April 3, 2004 drawn on ICICI Bank New Delhi as an advance consideration towards the said transaction of land. On April 20, 2004 an agreement to sell was executed between the respondent 1 and the petitioner and two cheques in the sum of Rs. 6,00,000 and Rs. 49,00,000 drawn at State Bank of Indore New Delhi in the same of Samit Kavdia were handed over by the petitioner to the respondent 1. On receiving Rs. 60,00,000/- (Rupees sixty lacs), the respondents land 2 allowed the petitioner to get the said land surveyed by one Mr. Manish Jain, B. E. Civil. Thereafter the petitioner engaged the services of M/s. Aesthetic Point Architects, Landscape and Interior Designers t prepare a lay out plan of a motel having 200 beds. The said plan was submitted to the JDA. But the respondent No. 1 on April 8, 2005 asked the petitioner company in writing to close the matter. Cheque in the sum of Rs. 60,00,000/- (sixty lacs) was enclosed with the letter. Contention of the petitioner company is that the respondents 1 and 2 had committed breach of contract. The petitioner company replied the said letter informing respondents 1 and 2 the details of MOU and agreement to sell.

(3.) THEREAFTER the respondents 1 and 2 vide communication dated July 11, 2005 stated that they have forfeited the amount and cancelled the entire agreement.