When parties agree on an amount of damages in case of breach of contract, the claimant is not required to prove the damages in a general sense, as the agreement itself serves as evidence of the quantum of damages.

JUDGMENT :

G.S. KULKARNI, J.

1. This is a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, “the Act”) whereby an interim award dated 21 February, 2020 passed by the learned sole arbitrator has been assailed. The operative portion of the award reads thus:-

“INTERIM AWARD

(i) The Claimant No. 1, i.e. Madhav Hari Karmarkar, would be entitled to an amount of Rs.1,04,45,000/- (Rupees One Crore Four Lakhs Forty Five Thousand only) being the principal amount calculated in terms of clause 9 of the PAAAs from the dates shown in the chart.

(ii) The Claimant No. 1, i.e. Madhav Hari Karmarkar, would be entitled to interest at the rate of 9% per annum on the amount due per year upto 31st May 2020 and thereafter upto the date of payment.

(iii) The Claimant No. 2, i.e. Sai Madhav Karmarkar, would be entitled to an amount of Rs.1,04,45,000/- (Rupees One Crore Four Lakhs Forty Five Thousand only) being the principal amount calculated in terms of clause 9 of the PAAAs from the dates shown in the chart.

(iv) The Claimant No. 2, i.e. Sai Madhav Karmarkar, would be entitled to interest at the rate of 9% per annum on the amount due per year upto 31st May 2020 and thereafter upto the date of payment.

(v) Both the Claimants would be paid the amount of Rs.80,000/- and Rs.75,000/- per month henceforth in terms of clause 9 of the PAAAs till the possession of Permanent Alternate Accommodation is handed over to them.

(vi) The amounts due under clauses (i) to (iv) above to be paid to the Claimants on or before 31st May 2020.

(vii) Monthly payment in terms of clause (v) above to be made latest by 10th of each month.”

2. Disputes and differences have arisen between the parties under a contract dated 10 June, 2010 titled as “Indenture of Assignment” and two other agreements titled as “Permanent Alternate Accommodation Agreements” dated 15 June, 2010 (for short, “PAAAs”). The disputes are in regard to a property admeasuring 835.88 sq. yards situated on Plot No. 153-A of Dadar Matunga Estate which housed a building known as ‘Nandadeep’ and one more structure, standing thereon (hereinafter referred to as “the property”).

3. In pursuance of these agreements, the respondents who are the owners of the said property, handed over the possession of the property to the petitioners for its redevelopment. The redevelopment of the property was to be undertaken as per and under the assignment agreement, whereunder the respondent was to be entitled to permanent alternate premises, as agreed under the said PAAA. Disputes had arisen between the parties as the petitioners as per the terms and conditions of the agreement had not commenced construction for more than three years, after entering into the said agreements. This caused the respondents to approach this Court by institution of a Civil Suit (Suit No. 114 of 2015). In such suit, an interim order was passed by a learned Single Judge of this Court on 22 February, 2019, recording a statement as made on behalf of the petitioners that no third party rights in respect of the property would be created by the petitioners pending the proceedings of the suit. Thereafter, by an order dated 23 July 2019 passed in the Suit, the disputes between the parties were referred for adjudication in arbitral proceedings. The statement as made on behalf of the petitioners and as noted above, was ordered to operate till the arbitral tribunal decides the interim application.

4. Before the arbitral tribunal, the respondents in addition to the statement of claim moved an application for an interim award, contending that there was a clear, unequivocal and unambiguous admission made by the petitioners in regard to the amounts due and payable to the respondents as agreed in clause 9 of the PAAAs. The respondents accordingly prayed for the following reliefs in the said application, as filed before the arbitral tribunal:-

“(f) In the alternative to prayers (a) to (e) above:

(i) …….

(ii) …….

(iii) that this Hon’ble Court be please