JUDGMENT :- The petition has been filed under section 11(6) of the Arbitration and Conciliation Act, 1996, for the appointment of an Arbitrator.

2. By a letter dated 10 December, 2007, the respondent accepted the offer of the petitioner for the allotment of a plot at Kharghar, Navi Mumbai, for the construction of a Five Star Hotel. The balance amount payable, apart from the earnest money of Rs. 2.5 crores, was Rs. 78.28 crores.

3. The respondent by its letter dated 3 February, 2009 sought the payment of the balance lease premium failing which it was stated that the agreement would be liable to be terminated by forfeiting the earnest money deposit and twenty five percent of the agreed lease premium. The petitioner by a letter dated 12 March, 2009 recorded that it had paid a sum of Rs. 39.14 crores towards the first instalment of the bid consideration. However, according to the petitioner, it had agreed to take up the project on a representation by the respondent that certain "milestones" would be achieved by the respondent including the construction of an International Airport at Navi Mumbai; a Flyover adjacent to the plot; the setting up of a Special Economic Zone at Navi Mumbai; the

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