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Pravesh Jain vs Splendor Landbase Limited on 17 May, 2022

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                          $~4
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      ARB.P. 456/2022
                                 PRAVESH JAIN                                         ..... Petitioner
                                             Through: Mr. Mayank Bughani, Adv.
                                             versus
                                 SPLENDOR LANDBASE LIMITED            ..... Respondent
                                                     Through:       Mr. Gaurav Puri, Mr. Sarthak Gupta
                                                                    & Ms. Yashmika Verma, Advs.
                                 CORAM:
                                 HON'BLE MR. JUSTICE VIBHU BAKHRU
                                                     ORDER

% 17.05.2022

1. The petitioner has filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereafter 'the A&C Act) praying that a Sole Arbitrator be appointed to adjudicate the disputes between the parties.

2. The parties had entered into a Memorandum of Understanding (MoU) dated 22.05.2014, whereby under Clause 2, the respondent had agreed to provisionally allot and the petitioner had agreed to purchase space admeasuring 800 sq.ft. (Super Area) in the project known as Splendor Epitome. The petitioner further claims that it paid an aggregate sum of ₹31,01,990/- to the respondent for allotment of the said property. In addition, the petitioner claims that the respondent had also agreed to provide assured returns which, it failed to do.

3. In the circumstances, the petitioner issued a notice dated 01.11.2021 invoking the Arbitration Agreement as contained in the MoU.

4. The Memorandum of Understanding (MoU) includes an Arbitration Clause that reads as under: -

"37. That in case of any dispute or difference between the parties in respect of this MOU which cannot be mutually and amicably settled between the Parties within thirty days from the date of its occurrence, the same shall be referred for arbitration to be conducted by the Sole Arbitrator to be appointed by the Chairman cum Managing Director of the Developer. The arbitration proceedings shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996. The seat of arbitral proceedings shall be New Delhi and the language of arbitration shall be English."

5. Mr. Puri, learned counsel appearing for the respondent does not dispute the existence of the Arbitration Agreement or that the petitioner has invoked the same. He, however, submits that the Arbitration Clause contemplates that the parties would first make an endeavour to resolve the disputes amicably. He states that in the present case, that exercise has not been completed. He submits that there is a possibility that the parties would be able to resolve the disputes through conciliation.

6. Since there is no dispute as to the existence of the Arbitration Agreement, the present petition is liable to be allowed.

7. This Court is informed that in similar petitions Justice (Retd.) R.K. Gauba has been appointed as an Arbitrator by a Coordinate Bench of this Court. Accordingly, Justice (Retd.) R.K. Gauba (Mob.9650411919) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties in connection with the MoU dated 22.05.2014.

8. This is subject to the learned Arbitrator making the necessary disclosure as required under Section 12(1) of the A&C Act and not being ineligible under Section 12(5) of the A&C Act.

9. Since the learned counsel for the respondent has contended that there is a possibility for the parties to resolve the disputes amicably, this Court directs that this order will not be operative for a period of eight weeks from today.

10. At the request of the learned counsels for the parties, the parties are referred to the Delhi High Court Mediation and Conciliation Centre (DHCMCC).

11. The parties shall appear before DHCMCC on 25.05.2022 at 3.00 p.m.

12. In the event the parties are able to resolve the disputes within the aforesaid period of eight weeks, no further steps would be required to be taken in furtherance of the arbitration, however, if the parties are unable to do so, they are at liberty to approach the learned Arbitrator for further proceedings.

                                                                                   VIBHU BAKHRU, J
                          MAY 17, 2022
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Signature Not Verified
Digitally Signed
By:Dushyant Rawal
Signing Date:20.05.2022