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IN THE HIGH COURT OF DELHI AT NEW DELHI
Sachin Datta, J.
Gls Foils Products Pvt. Ltd. – Appellant
Versus
Fws Turnit Logistic Park Llp & Ors. – Respondents
Arb. A. (COMM.) 43 of 2022 & I.A. Nos. 10764 of 2022, 10765 of 2022
Decided On : 10-07-2023
The disputes arose from a Joint Venture Agreement (JVA) for a warehousing project. The claimant sought specific performance of the JVA and interim measures under Section 17 of the Arbitration and Conciliation Act. The court found that the claimant did not delay in invoking arbitration and that the sale deeds to the appellant were executed after the notice of arbitration. The court also held that the JVA was not determinable and could be specifically enforced. The interim measures were necessary to prevent the appellant from disrupting the claimant's rights. The court emphasized that the observations made were prima facie and subject to the final decision by the arbitrator.
JUDGMENT
Sachin Datta, J. The present petition under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996 (the "Act") has been filed assailing the order dated 09.06.2022, passed by the learned arbitrator on an application under Section 17 of the Act, filed by the respondent no.1.
FACTUAL BACKGROUND
2. The disputes between the parties have arisen in the context of a Joint Venture Agreement ("JVA") dated 30.08.2019, between the respondent no.1 (claimant before the Arbitral Tribunal) and the respondent nos.2 to 8 herein, to develop a warehousing project on a property i.e.(i) Khewat No. 139 Rect. No. 25 Killa No. 21(8-0), 22(8-0), 23(8-0), 24/1 (5-16) and Rect. No. 26 Killa No. 2/111 (2-3), 9/2/2(2-8) and Rect. No. 31 Killa No. 3(8-0), 4(8-0), 5/1 (2-4) ad-measuring 6 Acre 4 Kanal 11 Marla situated in the revenue estate of Village Nangalia, Tehsil Palhawas, District Rewari, Haryana and (ii) Khewat No. 140 Min Khatauni No. 149 Min Rect. No. 25 Killa No. 16(8-0), 17(8-0), 18(7-18), 19(7-16), 20(8-0), 24/2(2-4), 25(8-0) and Rect. No. 25 Killa No. 26/1(0-6) and Rect. No. 26 Killa No. 2/112(1-19), 9/2/1(2-4) admeasuring 54 Kanal 7 Marla total Field 10, total admeasuring 54 Kanal 7 Marla or 6 Acre 6 Kanal and 7 Marla.
3. It is the case of the respondent no.1/claimant that as per the Joint Venture Agreement, the respondent nos.2 to 8 were to transfer the aforesaid property to an LLP to be incorporated for development of the project.
4. It has been averred in the statement of claim, filed before the Arbitral Tribunal, that the respondent no.1/claimant incorporated a new LLP entity under the name and style of "SY Logistics Park LLP, for the purpose of transferring the concerned property for the development of the warehousing project on the terms agreed in the alleged JVA.
5. As per the aforesaid Joint Venture Agreement, the claimant firm was to transfer to respondent nos.2 to 8 a sum of Rs.10 Lacs per acre. The area of the property in question was to the extent of 27.3265 acres.
6. Pursuant to the Joint Venture Agreement, a part consideration of Rs.1,50,000/- was paid to each of the respondent nos.2 to 8. As such, the respondent no.1/claimant is stated to have paid a total of Rs.10,50,000/- to the respondent nos.2 to 8 at the time of execution of the Joint Venture Agreement.
7. The Joint Venture Agreement contemplated profit sharing between the respondent no.1 and the respondent nos.2 to 8 after development of the warehousing project. It was further contemplated that the sale deeds in favour of the newly incorporated LLP i.e. SY Logistics Park LLP would be executed by 31.12.2019.
8. Disputes arose between the parties on account of alleged failure on the part of the respondent nos.2 to 8 to execute the sale deeds, as contemplated in the Joint Venture Agreement.
9. Consequently, disputes have arisen between the parties, the respondent no.1 invoked the Arbitration Clause contained in the Joint Venture Agreement and issued a notice invoking arbitration on 04.02.2020. Subsequently, a petition under Section 11 of the Arbitration and Conciliation Act came to be filed on 07.03.2020.
10. After the notice of invocation of arbitration was issued by the respondent no.1, the land in question/property in question was sold to the appellant herein, vide sale deeds dated 19.08.2020 and 11.06.2020.
11. The respondent no.1/claimant also filed a petition under Section 9 of the Act on 17.12.2021 seeking certain interim measures of protection. Vide order dated 20.12.2021, this Court disposed of the aforesaid petition filed under Section 11 of the Arbitration and Conciliation Act, and appointed a Sole Arbitrator to adjudicate the disputes between the parties. In the Section 9 proceedings, this court, vide order dated 21.12.2021 directed the respondent no.1/claimant to approach the learned Sole Arbitrator for appropriate relief under Section 17 of the Act.
12. In the above background, an application under Section 17 of the Act was filed by the
The court upheld the specific performance of the Joint Venture Agreement and granted interim measures under Section 17 of the Arbitration and Conciliation Act to prevent the appellant from disrupting....
Principle of minimum judicial intervention is one of fundamental tenets of arbitration law.
An appellate court exercising jurisdiction under Section 37 should not interfere with an Arbitral Tribunal's discretionary interim orders unless the exercise of discretion involves perversity, capric....
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 arbitral tribunal has broad powers to issue interim measures under the Arbitration and Conciliation Act, ensuring protection of claims during ongoing proceedings.
The main legal point established in the judgment is that the order passed by the Arbitrator under section 17(1)(ii)(b) of the Arbitration and Conciliation Act, 1996 was a proper exercise of jurisdict....
The arbitration agreement binds all parties, including non-signatories, and disputes must be referred to arbitration despite objections on limitation and jurisdiction.
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