V.B.RAMSAGAR Vs. SRIJAY CONSTRUCTIONS

JUDGEMENT

(1.) This Commercial Court Appeal filed under Sec. 13 of Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 r/w Sec. 37 of the Arbitration and Conciliation Act, 1996 (in short 'the Act' hereinafter) arises out of the petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 in C.O.P.No.21 of 2016 on the file of XXIV Addl. Chief Judge, City Civil Court which was filed challenging the award passed by the sole arbitrator dtd. 15/2/2012.

(2.) The facts in brief are that respondent No.1 is a proprietary firm and respondent No.2 is the proprietor of respondent No.1 / Constructions (hereinafter referred as respondents). The appellant herein had entered into a development agreement originally on 15/5/1996 with respondents for developing land admeasuring 350 sq.yds., in plot bearing No.44, situated at Methodist Colony, Kundanbagh, Begumpet, Hyderabad.

(3.) In the said development agreement, there was an understanding to share built up area in the ratio of 32% to the appellant and 68% to the builders i.e., respondent Nos.1 and 2. Thereafter, certain disputes arose among the partners of respondents and a fresh development agreement dtd. 11/10/1997 was entered into between the parties which was thereafter cancelled unilaterally by the appellant vide letter dtd. 19/7/1999. Subsequently, there were inter se disputes between the respondent partnership firm and respondent No.1 which was reduced into proprietary concern and thereafter respondent No.1 raised one flat in second floor and partly two other flats and proceeded with the construction of outer walls of the super structure and the said structures on the subject land was found to be defective.