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R. I. CHAGLA
Bks Galaxy Realtors LLP (previously known BKS Galaxy Realtors Pvt. Ltd. ) – Appellant
Versus
Sharp Properties – Respondent
JUDGMENT :
1. By this Arbitration Appeal, the Appellants are seeking to set aside the impugned order dated 2nd May, 2024 passed by the Civil Judge, S.D. Belapur, in below exhibit 14 in Special Civil Suit No.87 of 2024. The impugned order was passed rejecting the Application filed by the Appellants under Section 8 of the Arbitration and Conciliation Act, 1996 (for short, “Arbitration Act”) for referring the aforementioned Suit for Arbitration. The present Arbitration Appeal has been filed by the Appellants under Section 37 of the Arbitration Act.
2. Brief background of the facts is necessary to be stated as under:-
(a) The Respondent No.6 was erstwhile owner of the land being Gat Nos.51(2), 56 and 57(2) admeasuring 5 acres or thereabouts situated at Thane Belapur Road, Village Dighe, Kalwa, District Thane, (for short, “subject property”).
(b) The Respondent No.7 had owned and was seized of a factory structure situated on the subject property.
(c) An unregistered Memorandum of Understanding ((MoU 2015) dated 8th September, 2014 was executed by Respondent No.6 in favour of Respondent No.1 for transfer of the subject property on the terms and conditions recorded therein and for a total sale
The execution of a Conveyance Deed extinguishes the original Agreement for Sale and its arbitration clause, rendering them ineffective.
The MoU constituted novation of the 2014 Contract, and the tribunal does not have the jurisdiction to entertain disputes under the arbitration clause contained in the 2014 Contract.
In a contract for sale of immovable property, normally it is presumed that time is not the essence of the contract. Even if there is an express stipulation to that effect, the said presumption can be....
The main legal point established in the judgment is the court's interpretation of the arbitration clauses in the agreements and the application of Section 8 of the arbitration act to refer the disput....
Disputes capable of being adjudicated by the Civil Court are generally amenable to arbitration, unless expressly excluded. The importance of appointing an eligible arbitrator was also emphasized.
Court has limited jurisdiction under Section 11 of Arbitration and Conciliation Act, 1996.
An arbitration clause survives the termination of the substantive contract, allowing disputes to be resolved by the arbitrator regardless of the contract's lapse due to time constraints.
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