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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Parminder Jit Kaur - Appellant
Versus
Splendor Buildwell Pvt. Ltd. - Respondent
Arb.P. 841 of 2021, Arb.P. 842 of 2021 and Arb.P. 843 of 2021
Decided On : 20-09-2021




The right to appoint a sole arbitrator is exclusive, and parties must adhere to agreed arbitration clauses without unilateral modifications.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Petition for appointment of arbitrator - Disputes arising from Space Buyers Agreements and associated MoUs regarding non-execution of conveyance deed - Court affirms the need for arbitration upon invocation by one party, noting the Supreme Court's guidance on appointment exclusivity of arbitrators - Respondents' attempt to unilaterally appoint their own arbitrator deemed improper. (Paras 3, 9, 10)

(B) Legal Procedure - Parties agreed to resolve disputes via mutual discussion or arbitration - Petitioner alleges violation of agreements as conceived by parties, thus justifying the need to invoke arbitration. (Paras 4, 6, 7)

Facts of the case:
The petitioners, having paid significant amounts towards property units under agreements with respondents, filed for arbitration regarding disputes on the sale deed execution. Respondents contested the need for arbitration on various grounds, including counterclaims under certain Acts.

Findings of Court:
The court emphasized the mutual agreement for arbitration and rejected respondents' contention of improper claims, appointing an independent arbitrator.

Issues: The key issue is the validity of the respondents' self-nomination of an arbitrator when one party has already invoked arbitration and appointed an arbitrator.

Ratio Decidendi: The court ruled that the right to appoint a sole arbitrator must remain exclusive and one party cannot unilaterally alter this right forward.

Result: Petitions allowed; a sole arbitrator appointed to oversee the arbitration process.

Table of Content
1. parties involved and nature of petitions. (Para 1 , 2 , 3)
2. claims of violation and request for arbitration. (Para 4 , 5 , 6)
3. dispute on arbitrator appointment. (Para 7 , 8)
4. supreme court's directive on arbitrator appointment. (Para 9 , 10)
5. appointment of arbitrator and conclusion. (Para 11 , 12 , 13 , 14)

JUDGMENT

Suresh Kumar Kait, J. (Oral)--The hearing has been conducted through video conferencing.

1. Petitioner (s) in the first and third captioned is Ms. Paraminder Jit Kaur and in the second captioned petition besides her, is Mr. Manmohanjit Singh is, who have preferred these petitions under the provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator to adjudicate the dispute with respondents.

2. Since parties to the present petitions are similar and even the subject matter of these petitions is more or less similar, therefore, with the consent of counsel representing both the sides, these petitions have been heard together and are being disposed of by this common judgment.

3. According to petitioner(s), respondent No.1 & 2 are companies registered under the Companies Act, 1956 and pursuant to understanding between two of them, respondent No.1-company agreed to undertake to develop and construct IT Building/Tower(s) consisting of IT Office Spaces on the land admeasuring 6.775 acres situated in Sector-58 in the revenue estate of Village Behrampur, Tehsil Sohna and District Gurgaon, Haryana owned by respondent No.2. For this purpose, respondents No.1 and 2, who are said to be sister concerns, entered into a Space Buyers Agreement and Memorandum of Understanding dated 28.07.2021 in [ARB.P.841/2021]; Space Buyers Agreement 24.10.2016 and Memorandum of Understanding dated 25.10.2016 in [ARB.P.842/2021] and Space Buyers Agreement and Memorandum of Understanding dated 06.05.2015 in [ARB.P.841/2021] whereunder respondent No.1 undertook to register conveyance deed in the name of petitioner within six months of receipt of Occupancy Certificate. The petitioner(s) claims to have paid entire amount of Rs.25,70,400/ towards sales consideration with respect to unit No.404, super area of 765 Sq.ft on the Second Floor of Tower-D (in ARB.P.841/2021) and Rs.40,94,310/-towards sales consideration with respect to unit No.412, super area of 1306 Sq.ft on the Second Floor of Tower-D 9 (in ARB.P.842/2021) and Rs.41,48,3201/ -towards sales consideration with respect to unit No.205, super area of 975 Sq.ft on the Second Floor of Tower-B (ARB.P.843/2021).

4. At the hearing, learned counsel for the petitioner submits that the terms of aforesaid Space Buyers Agreements and Memorandum of Understandings have been violated, whereunder in Clause-31 & 34 it was agreed between the parties that disputes, if any, first shall be tried to be resolved through mutual discussion, failing which the same shall be settled through arbitration.

5. Learned counsel further submits that despite payment of entire sale consideration and meeting the demands for payment so raised by the respondents, the convenance deed in favour of petitioners has not been executed with respect to the said unit, therefore, a legal notices dated 12.11.2020 in each petition were sent to the respondents demanding the payment of pending assured returns and execution of the sale deed. The aforesaid legal notices were replied to by the respondents vide its communication dated 29.12.2020 raising frivolous pleas and fictious claims under the Banning of Unregulated Deposit Schemes Act, 2019 and stated that under the provisions of the said Act, the Memorandum of Understandings in question stood terminated.

6. In such circumstances, petitioner filed petitions before District Courts [OMP (I) (Comm.) 175/2021; 176/2021 & 177/2021], wherein respondents have undertaken that no third-party interests shall be created with regard to properties in question with liberty to petitioners to invoke the arbitration clause.

7. It i

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