Green City (Builders and Developers) vs N. Gangadaraiah and Others

Mohan Shantanagoudar, J.—Respondents are served and unrepresented.

The Petitioner entered into Memorandum of Understanding with the Respondents as per Annexure-B, dated 29.4.2005 for purchasing the schedule properties. Supplementary Memorandum of Understanding is executed on 5.5.2005 as per Annexure-C. Clause 20 of the Memorandum of Understanding contains arbitration clause. After entering into the Memorandum of Understanding, the Petitioner stated to have paid certain part of the sale consideration to the Respondents. However, the disputes have arisen between the parties later and consequently sale could not take place, inasmuch as the terms and conditions found in the Memorandum of Understanding are not fulfilled. Ultimately, the Petitioner issued notice as per Annexure-H, dated 26.4.2007 invoking arbitration clause for appointment of Arbitrator. In the said notice, the name of the Arbitrator was mentioned.

The records reveal that the parties have entered into Memorandum of Understanding on certain terms and conditions, However, the disputes have arisen between the parties and consequently, the object with which the Memorandum of Understanding was entered into, is not fulfilled. Since the Memorandum of Understanding contains arbitration clause, and the Petitioner issued notice as per Annexure-H to the Respondents. However, no useful purpose is served thereafter. Hence, this petition is filed u/s 11(4) of the Arbitration and Conciliation Act, 1996.

Having regard to the totality of the facts and circumstances of the case, I am of the opinion that this is a fit case to appoint an Arbitrator. Accordingly, the following order is made:

Sri S.V. Tilgul, Retired District and Sessions Judge, No. 1664, 9th Main, HAL III Stage, Bangalore-560 075, is appointed as Sole Arbitrator, to resolve the dispute between the parties. The learned Arbitrator, on receipt of a copy of this order shall enter upon the reference, issue notice to the parties and then proceed to resolve the dispute, in accordance with the Arbitration and Conciliation Act, 1996.

Office is directed to send a copy of this order to the learned Arbitrator, forthwith. It is further directed to return all the original papers, if any, filed along with the petition to the Petitioner to enable it to produce before the learned Arbitrator.

Petition is disposed of accordingly.