The main legal point established in the judgment is that the attempt to invoke arbitration must be maintainable, and in this case, the court found that the petitioner No.1's attempt was not maintainable due to the transfer of rights and liabilities under the Development Agreement to petitioner No.2.

JUDGMENT

V. Kameswar Rao, J. This petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator to adjudicate upon the disputes that have arisen between the parties.

2. The petitioner No.1 is a company incorporated under the provisions of the Companies Act, 1956 and the respondents are private persons residing in Dhanwapur Village, Gurugram, Haryana. The respondents together owned 1/3rd share of land admeasuring 64 kanals comprised in Rect. No. 18, Killa No. no.l(7-0), 10(7-0), Rectangle no. 19, Killa No.4 (8-0), 5(8-0), 6(8-0), 7(8-0), 14(8-0), 15(8-0), 16(2-0), Kitta 9, situated in Village Dhanwapur, Tehsil and District Gurgaon, Haryana. Apart from the respondents herein, there was one more landowner, one Mr. Jai Bhagwan, who also owned 1/3rd share in the said land. The remaining 1/3rd of the land was owned by the petitioner No. 1 company. In other words, the respondents and Mr. Jai Bhagwan together owned 2/3rd share in the land admeasuring 64 kanals.

3. In the year 2006, the respondents approached the petitioner No. 1 for developing the said land into a Group Housing Scheme. The petitioner No. 1 agreed to the proposal of the respondents as it owned the adjacent land. Accordingly, the parties herein, along with Mr. Jai Bhagwan, entered into a Development Agreement dated February 24, 2007. Later, Mr. Jai Bhagwan sold his 1/3rd share to the petitioner company vide Sale Deed dated, July 29, 2009. The petitioner No. 1 in furtherance of the Development Agreement was responsible for carrying out development and marketing of the proposed Group Housing Scheme. The petitioner No. 1 was entitled to 65% share of the total built-up area, as well as the land underneath. The respondents were liable to transfer the said land through a registered deed, either in favour of the petitioner No. 1 or its nominees, or directly to individual buyers. The respondents were to get 35% share in the total built-up area in lieu of their contribution of land. In addition, an amount of Rs.1,33,33,332/- was given as security deposit to the respondents, out of which, 50% was refundable/adjustable and the remaining 50%, i.e., Rs.66,66,666 was non-refundable. The respondents were to execute and register a General Power of Attorney in favour of the petitioner No. 1, which was duly executed on February 24, 2007. The petitioner No. 1 obtained a License bearing No. 68/2012 and developed a Group Housing Project namely `Emerald Bay', situated in Sector 104, Gurugram, under the aegis of its parent company M/s Puri Construction Pvt. Ltd., which has been impleaded in the present petition as petitioner No. 2 vide order of this Court dated December 15, 2021 and an amended memo of parties is filed along with application being I.A. 14465/2021.

4. The petitioner No.1 in furtherance of the Development Agreement allocated the developed area/apartment to the respondents, which is either being personally utilized or put up on rent by the respondents.

5. It is stated that the petitioner No.1 has fulfilled and discharged all its obligations under the said agreement. However the respondents have not fulfilled their part of the obligations under the agreement, which are as shown below:

a. Refund of Rs.66,66,666/- as refundable security to the petitioner No. 1;

b. Transfer of the portion of land under collaboration by way of registered sale deed in favour of the petitioner No. 1 or its nominee(s) or directly to the individual buyers;

c. Failure to make payment of Rs.40 Lacs [approx.] calculated at the rate of Rs.50/- per sq. ft. towards IFMS for the total developed area allocated to the respondents;

d. Amounts pertaining to excess area allocated to respondent no.2;

e. Payment of requisite/applicable EDC charges as per terms of the Agreement;

f. Payment of applicable Common Area Maintenance Charges for the developed area allocated to the respondents;

g. Payment of requisite Stamp Duty, Registration Charges and Legal Ad