By this petition filed under Section 34 of the Arbitration & Conciliation Act, 199 (For short herein after referred as Arbitration Act 1996), petitioner seeks to challenge award dated 21st November 2011 delivered by the learned arbitrator directing the petitioner herein to pay the sum of Rs.90,00,000/-to the respondent together with interest thereon @ 12% p.a. from 12th November 2008 till realization and directed the respondent herein to apply to this Court for payment of the said sum together with interest which amount has been deposited in company Petition No.343 of 2009 by the petitioner herein as per order dated 9th August 2010. The learned arbitrator also directed the petitioner herein not to alienate, dispose of or encumber or create any third party rights or part with possession of the property being the subject matter of the arbitration till the respondent herein realizes all the amounts under the said award. The learned arbitrator also directed payment of Rs.1,20,000/- towards the costs of the arbitration payable by the petitioner to the respondent.

Factual Matrix :

2. Under a Sale Deed dated 11th August 2006 between Durolite Pvt. Ltd and the petitioner herein, the petitioner became owner of the property admeasuring 1 Hector and 27 Ares equivalent to about 12700 square meters of land bearing Gat. No.837/2. Village Sanaswadi, Taluka Shirur, Dist. Pune (hereinafter referred to as 'the said property'). The petitioner had obtained credit facility of Rs.6,55,00,000/- from the Saraswat Co. Op Bank Ltd., on security of the said property along with the building, plant and machinery thereon. Charge was created on the said property in favour of the Saraswat Co. Op Bank Ltd., and was registered with the Registrar of Companies, Maharashtra. By Leave and License Agreement dated 1st April 2008 executed by the petitioner as the Licensor and the respondent as the Licensee, petitioner granted Leave & License to the respondent to use and occupy the premises adm. 10000 square feet in a building on the said property for the term of twelve months on payment of license fee of Rs.50,000/- per month. The respondent was given an option of buying the said property at the mutually agreed price.

3. Parties negotiated for sale of portion of the said property pursuant to which the respondent paid the sum of Rs.60,00,000/-in instalments to the petitioner. By an agreement dated 2nd September 2008 executed between the petitioner and the respondent, petitioner agreed to sell portion of the said property admeasuring 46667 square feet out the said property along with building with ground floor adm.21600 square feet built up area and permissible further construction of about 18000 square feet built up area for a consideration of Rs.5.70 crores. It was agreed that amount of Rs.60,00,000/- paid by the respondent to the petitioner in April 2008 shall be considered as earnest money and part payment of the purchase price under the said agreement. The respondent agreed to pay the balance amount of Rs.5.10 crores at the time of completion of sale of the said property in favour of the respondent and on delivery of vacant possession of the said property to the respondent. Clauses 4, 5, 11, 12 and 15 of the said agreement are extracted as under:

"4. The Purchasers have agreed to pay to or according to the instructions of the Vendors amounts aggregating to Rs.5,10,00,000/- (Rupees Five Crores Ten Lakhs Only) on or before 19th September 2008 at the time of completion of the sale of the said property in favour of the Purchasers and delivery of vacant possession of the said property to the Purchasers as provided herein.

The agreed price includes following :

• Land admeasuring 43,600 sq.ft.

• Bldg. Of 21600 sq.ft.

• 1 No. Transformers of 500 kva

• Materials storage racks. 4 nos. 16.5 tons each with ducting system.”

“5. The Vendors shall within 90 days of the date of this Agreement obtain from The Saraswat Co. Op Bank Ltd., Somwarpeth branch and deliver to Purch