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2024 Supreme(Mad) 200

HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J.
M. Vairavamoorthy - Appellant
Versus
D. Inbavalli & Anr. - Respondents
Arb. O.P. (Com.Div.) No. 469 of 2023 & O.A. No. 86 of 2023
Decided On : 04-01-2024

Advocates appeared:
For the Petitioner:Javid Akbar, Advocate. For the Respondents:R1, A.V. Arun assisted by M.A. Aruneshe, R2, M. Kamaraj, Advocates.

The main legal point established is the authority of the Arbitrator to resolve disputes arising from Joint Venture Agreements under the Arbitration and Conciliation Act, 1996.

Headnote:

Arbitration - Appointment of Arbitrator - Arbitration and Conciliation Act, 1996, Section 11(6) - 20

Fact of the Case:

The petitioner filed an Original Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an Arbitrator to adjudicate disputes arising from Joint Venture Agreements.

Finding of the Court:

The Court found that the petitioner had commenced construction pursuant to the Joint Venture Agreements and appointed an Arbitrator to resolve the inter se dispute between the parties.

Issues: The issues included the authority of the second respondent to enter into the Joint Venture Agreements and the arbitrability of the dispute.

Ratio Decidendi: The Court's decision was influenced by the fact that the petitioner had developed the property in accordance with the Joint Venture Agreements and the wide powers conferred on the second respondent by the first respondent.

Final Decision: The Original Petition was allowed, appointing an Arbitrator to resolve the dispute, and leaving the parties to bear their own costs.

JUDGMENT

(Prayer: Original Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying to appoint an Arbitrator to adjudicate the disputes between the Petitioner and Respondents in terms of the clause 20 of the Joint Venture Agreement dated 27.01.2020 and to direct the Respondents to pay costs.)

1. This Original Petition has been filed by the petitioner under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator.

2. It is noticed that the petitioner has entered into two Joint Venture Agreements both dated 27.01.2020 in respect of two plots, one adjacent to each other bearing Plot Nos.45 and 46 in Kamatchi Amman Nagar, Madanandapuram Village, Sriperumbudur Taluk (presently Alandur Taluk), Kancheepuram District within the Registration of South Chennai and Sub-Registration District of Kundrathur, with the first respondent herein as the General Power of Attorney Holder of the second respondent, the owner of the property.

3. The learned counsel for the first respondent confirms that the first respondent had executed Power of Attorney in favour of the second respondent on 20.04.2017 pursuant to which, the second respondent has purportedly executed the above mentioned Joint Venture Agreements both dated 27.01.2020 in respect of Plot Nos.45 and 46.

4. The facts on record indicate that Plot No.45 measuring an extent of 2400 sq.ft has been sold by the second respondent in favour of one Suhale Ahamed. It is noticed that Plot No.46 measuring an extent of 1947 sq.ft has been already sold to one Krishnamoorthy by the first respondent vide Sale Deed dated 15.12.2021. Insofar as Plot No.45 measuring an extent of 2400 sq.ft is concerned, the petitioner appears to have commenced construction pursuant to Joint Venture Agreements dated 27.01.2020.

5. Both the Joint Venture Agreements contemplate resolution of dispute through arbitration, are identically reproduced below:-

    "Arbitration and Jurisdiction :

    20. It is mutually agreed that all dispute arising out of this agreement with reference to the terms and obligations, shall be referred to a sole arbitrator of mutual choice and in the absence of any consensus the parties are agree to approach the court seeking appointment of an Arbitrator under Section 11 of Arbitration and Conciliation proceedings of Arbitration and Conciliation Act, 1996.

    Any dispute arising in connection with this agreement shall be settled by courts of competent jurisdiction in Chennai."

6. A preliminary objection is raised by the land owner, the first respondent herein, on the ground that the power that was executed in favour of the second respondent on 20.04.2017 did not authorize the second respondent Power of Attorney to enter into the Joint Venture Agreements with the petitioner and/or the execution of Joint Venture Agreements dated 27.01.2020 in respect of the respective plots and was contrary to the power granted by the first respondent to the second respondent.

7. Athough the petitioner has kept only one copy of the Power of Attorney for the land in Plot No.45, a reading of the clauses prima facie indicates that wide powers have been conferred on the second respondent by the first respondent. Relevant Clauses reads as under:-

    "1. To negotiate for the sale of the Schedule mentioned vacant house site property, in whole or in parts or in undived shares or in any other manner alienate the said property, And agree to sell, enter into an agreement of sale with prospective purchaser or Purchasers for the said property.

    2. To prepare and execute necessary Sale Agreement or Sale Deed or deeds in respect of the vacant house site property, which is more fully described in the Schedule hereunder to any person or persons on my behalf.

    3. To sell the said vacant house site property, described in the Schedule hereunder to the Purchaser for consideration to be determined by My Attorney and furt

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