JUDGMENT :

(Prayer: Original Petition filed under Section 11(6) of Arbitration and Conciliation Act, 1996, praying to appoint an Arbitrator on behalf of the Respondent in terms of Clause 20 of the Agreement dated 31.03.2019 to adjudicate upon the disputes that have arisen between the parties in relation to the said agreement.)

1. This Original Petition has been filed for appointment of Arbitrator to resolve the dispute arose in the Joint Development Agreement. The parties are governed by the contract of Joint Development Agreement executed between them on 31.03.2019, in which clause 19 provides for reference to the arbitration.

2. As per the said agreement, the Petitioner has agreed to develop the property owned by the respondent and also agreed to construct a residential complex. The sale consideration payable to the Respondent was agreed to be 60% of the total sale proceeds of the total developed area of 1,50,000 sq.ft. to be put up in the said property by the Petitioner as defined under the Agreement. The payment of sale consideration was specifically agreed upon between the parties in clause 8 of the Agreement.

3. It is the contention of the Petitioner that they have paid a sum of Rs.5,00,00,000/- (Rupees five crores only) towards security deposit and also further sum of Rs.3,00,00,000/- (Rupees three crores only) was agreed to be deposited towards further security deposit on handing over vacant possession of subject property. Pursuant to the terms of Agreement, the Petitioner had taken all steps towards development of project and spent huge sum towards the requisite statutory clearances. However, suddenly, the Respondent has transferred the security deposit amount to the account of Petitioner and has failed to adhere to the terms of Agreement in spite of repeated reminders. As the dispute having arisen between the parties and having remained unresolved in spite of several attempts to amicably resolve the disputes with the Respondent, the Petitioner has invoked to refer the dispute for arbitration as per clause 19 of the contract. Hence, this Petition has been filed seeking for appointment of Arbitrator.

4. The Respondent has filed a Counter that the Agreement cannot be enforced in the eye of law since it is an unregistered and unstamped Agreement and it is against the Registration Act. Therefore, the document cannot be used for referring the dispute between the parties for arbitration. It is not in dispute that the contract entered between the parties provides for arbitration, in which, clause 19 reads as follows :-

“19.In the event of any dispute, controversy, claim or disagreement of any kind whatsoever between or among the parties including the interpretation or breach of the terms contained in this Agreement (hereinafter to as “Dispute”), arising between the Parties, the Parties shall first attempt to resolve such Dispute through negotiation. The Party that claims that a Dispute has arisen, must serve a written notice on the other Party specifying the particulars of such Dispute (hereinafter referred to as “Dispute Notice). Such Dispute or part thereof arising under or in connection with this Agreement which could not be settled by Parties through negotiations, after the period of sixty (60) days from the service of the Dispute Notice or such longer period as may be agreed by the Parties in writing, shall be finally settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996 (as amended or supplemented thereafter).”

5. Heard the submissions of learned Counsel appearing for Petitioner as well as the Respondent and perused the records.

6. What is to be seen under Section 11 of the Arbitration and Conciliation Act is the existence of the agreement. As the Contract itself provides for dispute resolution by way of Arbitration, which is binding on the parties, this Court is inclined to appoint an Arbitrator to resolve the dispute arose between the parties. It is open to the Respondent herein to raise all t