L. Chandramma vs K.C.N. Mohan

S. Abdul Nazeer, J.—The petitioners have filed this civil miscellaneous petition u/s 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of an Arbitrator to resolve the dispute, which has arisen in relation to the Joint Development Agreement at Annexure-A dated 13.07.2006.

The contention of the petitioners is that the first petitioner is the owner of the immovable property being residential site bearing Nos. 2 and 9 and the second petitioner is the absolute owner of the residential site bearing Nos. 1 and 10 forming part of the land earlier bearing Sy. No. 104/3-A-2 Old No. 104/3 situated at Allasandra Village, Yelahanka: Hobli, Bangalore North Taluk, Ward No. 23. It is further contended that they have entered into a Joint Development Agreement at Annexure-A with the respondent for development of the said property.

It is the case of the petitioners is that the respondent had agreed and undertaken to complete the construction of the residential apartment complex at his cost in accordance with the sanctioned plan and the specifications and thereafter deliver 50% of the built up area to the petitioners within a period of 24 months from the date of signing of the aforesaid Joint Development Agreement with a grace period of 3 months. The petitioners also executed a general power of attorney dated 13.07.2006 in favour of the respondent authorizing him inter alia to carry out the development and construction work and also authorizing him to sell his 50% of the undivided share, right, title and interest in the schedule property together with the proportionate built-up area to the prospective purchasers. They have also entered into a Supplementary Agreement dated 31.08.2008, by which they had specifically earmarked the residential flats to be allotted to their respective shares. It is contended that the respondent has not performed his obligation under the Joint Development Agreement. Therefore, they got issued notice at Annexure-K dated 21.11.2013, calling upon the respondent for appointment of an arbitrator to resolve the dispute.

I have heard the learned counsel for the parties.

Learned counsel for the petitioners in his argument has reiterated the contention urged in the petition.

Learned counsel for the respondent has contended that the respondent has discharged his obligation under the contract.

There is no dispute as to the execution of the Joint Development Agreement at Annexure-A dated 13.07.2006. It is also not disputed by the learned counsel for the parties that the joint development agreement contains an arbitration clause for resolution of the dispute. Whether the respondent has performed his obligation in terms of the contract or not has to be adjudicated by the arbitrator. Needless to say that the dispute has arisen in relation to the aforesaid Joint Development Agreement. Therefore, it is just and proper to appoint an arbitrator for resolution of the dispute.

In the result, the civil miscellaneous petition succeeds and it is accordingly allowed in part. Sri. B. Shivalingegowda, retired District Judge, is requested to enter upon the reference and arbitrate over the dispute and conduct arbitration proceedings at Arbitration Centre in terms of the Arbitration Centre - Karnataka (Domestic and International) Rules, 2012.

Send a copy of this order to the Arbitration Centre, Bangalore, forthwith.