Disputes arising from contractual agreements should be resolved through arbitration as stipulated in the arbitration clause, reinforcing parties' obligations.

ORDER :

1. This Civil Miscellaneous petition is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for the appointment of an Arbitrator to resolve the disputes between the parties to the petition in terms of Clause 10.3 of the Agreement to Sell dated 23.08.2024 vide Annexure “B”.

2. Brief facts, leading rise to the filing of this petition are as follows.

3. The petitioners and respondents have entered into a Letter of Intent dated 26.07.2024 for the proposed purchase of the schedule property. The respondents informed the petitioners that the e-Khata was not available for the schedule property. The parties entered into an Agreement to sell on 23.08.2024 and agreed on the consideration for the conveyance of the schedule property in terms of the Letter of Intent. The petitioners got a loan sanctioned from their Banker.

4. When the matter stood thus, to the utter shock and surprise of the petitioner, the respondents' daughter, Ms. Geeta Rajamani, attempted to re-negotiate the sale consideration, despite the purchase consideration having already been agreed upon between the petitioners, and the respondents under the Letter of Intent, and the Agreement of Sale.

5. The petitioners learnt from the tenant, Mr. Radesh and the agent, that the new parties (not the owners), had visited the schedule property to view it. The agent sent an e-mail dated 10.02.2025 setting forth the next steps to execute and register the absolute Sale deed in accordance with the Letter of Intent and the Agreement. In response, the petitioners sent scanned copies of the demand drafts for the balance consideration, and confirmed their availability for the execution and registration of the absolute Sale deed, thereby establishing that the petitioners were ready and willing to come forward, and give effect to the sale, and purchase of the schedule property.

6. The respondents cancelled the Sale Agreement dated 23.08.2024 in terms of the letter dated 12.02.2025, and issued a cheque for a sum of Rs. 5,00,000/- in the name of the petitioners.

7. The petitioners invoked an arbitration clause by issuing an arbitration notice dated 18.03.2025 to the respondents, suggesting former Judge of the High Court of Karnataka as the Arbitrator. The respondents issued a reply dated 25.03.2025 proposing the name of Hon’ble Mr.Justice A.S.Bopanna, former Judge of the Hon’ble Supreme Court of India, as the Arbitrator. The petitioners consented to the same vide reply notice dated 31.03.2025. However, till date the respondents have failed to take further steps for the appointment of an arbitrator, despite continuous follow up. Hence, this petition.

8. Heard the arguments of the learned counsel for the petitioners, and the learned counsel for the respondents.

9. The learned counsel for the petitioners submits that the petitioners and the respondents have entered into a Letter of Intent and Agreement to sell dated 26.07.2024 and 23.08.2024 respectively, agreeing to purchase the schedule property. The respondents unilaterally cancelled the Letter of Intent and agreement and issued a cheque for Rs. 5,00,000/- in the name of the petitioners. There is an arbitration clause in the Agreement to sell dated 23.08.2024, vide Annexure “B”.

10. The petitioners invoked an arbitration clause by issuing an arbitration notice on 18.03.2025. The respondents replied to the legal notice, but thereafter, failed to take up further steps for the appointment of an arbitrator. Hence, he prays to allow the petition.

11. Per contra, the l