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2022 Supreme(Bom) 510

A.K.MENON
Vivek Mehta – Appellant
Versus
KaRRs Designs & Developments – Respondent


Advocates:
Advocate Appeared:
For the Applicant : Mr. Rohan Kadam a/w Ms. Ravina Rajpal, Ms. Sonia Redkar i/b. M/s. Singh & Singh Malhotra & Hegde
For the Respondent:Mr. Dinyar Madon, Sr. Advocate, a/w Mr. Kevic Setalwad, Sr. Advocate, Mr. Cyrus Ardeshir, Mr. Rahul Dwarkadas, Mr. Neveille Mukerji & Mr. Asim Tirmizi i/b. Veritas Legal, Mr. Himanshu Takke, AGP

JUDGMENT :

P.C. :

1. This application filed under Section 11 of the Arbitration and Conciliation Act, 1996, seeks appointment of a Sole Arbitrator to adjudicate upon disputes that have arisen under a Memorandum of Understanding (MOU) dated 29th August, 2009. The application filed in 2016 remains pending for numerous reasons. Initially, the parties were referred to mediation since they were in negotiations and meetings have been held prior to 2017. These meetings did not yield results and on 18th April, 2019 the respondents raised objections to the maintainability of the petition since the MOU was not sufficiently stamped. This is found to be recorded in an order dated 18th April, 2019. Eventually mediation having failed, the matter was taken up for hearing on 26th November, 2019. After noting that clause 17 of the MOU contained an arbitration clause, the court noted that stamp duty in respect of the MOU was payable by the applicants.

2. In view of the objections to stamping, the court in its order dated 26th November, 2019 considered the nature of the MOU and observed that unless stamp duty is fully paid with penalty, the court could not proceed with appointing an arbitrator, in view

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