The application for appointing an arbitrator under Section 11 of the Arbitration Act was held to be within the limitation period, as the dispute arose on 25th June, 2021.

FINAL ORDER :

1. Arbitration Application is filed under Section 11 (1) of the Arbitration and Conciliation Act, 1996 (for short, “the Act”) seeking appointment of sole-Arbitrator to adjudicate the dispute arising out of Memorandum of Understanding (MoU) dated 1st March, 2014.

2. The facts of the case are as under:

A Memorandum of Understanding (for short” MOU”) came to be executed on 1st March, 2014 between the respondents and the Applicant No.1. Respondent Nos.1 to 4 are the co-owners of agricultural land out of Gut No.7 of village Mauje Golwadi total admeasuring 5 H 84 R and the subject matter of MoU was an area approximately 4 H 84 R. The MoU records that the land forming subject matter of MOU was ancestral property of respondents, and the property has been inherited by the owners in equal proportion. By this MoU, the respondents agreed to sell the land i.e. approximately 4 H 84 R to the Applicant No.1 for consideration of Rs.11 Crore and a sum of Rs.50 lakhs was paid as earnest money at the time of execution of MoU. The relevant clauses of the MoU are as under:

“2. The Owners further assure that they collectively own the said property as indicated on 7/12 extract and they have collectively agreed with mutual understanding that their respective shares in the property are as follows:

a. Jayashree Suresh Bhat 19%

 b. Dileep Vasant Thatte 35%

c. Anjali Vinay Thakur 25%

 d. Nilima Amit Maydeo 21%

The purchaser is and will be paying the amount of consideration to each owner as per the above division. The Owners hereby assure the Purchaser that neither of them will object for such mode of payment of consideration.

3. That the Purchaser shall pay to the owner the balance amount of Rs.10,50,00,000/- (Ten Crores Fifty Lacs Only) as follows:

(i) Amount of Rs.50,00,000/- (Fifty Lacs Only) to be paid on or before 15/06/2014.

(ii) That the final installment of the consideration i.e. the Amount of Rs.10,00,00,000/- (Ten Crores Only) is to be paid on or before 15/12/2015 at the time of execution of Sale Deed.

(iii) The abovementioned consideration is decided on the basis of area owned by the party of the first part/owners. The party of the first part/owners agrees for decrease in the said consideration, if there is decrease in area owned by them after title verification of the said entire land.

(iv) It is agreed between the parties that if Purchaser will pay Rs.10,00,00,000/- (Ten Crores Only) i.e. the Final consideration to the party of the first part before the time frame agreed above, in such case the Purchaser will be eligible for discount @10% P.A. on the total consideration agreed.

(v) It is further agreed between the parties that if the purchaser fails to pay final amount of consideration within the time frame as agreed above then the parties will suitably extend the period, provided that the Purchaser has paid additional Rs.3,00,00,000/-(Rs. Three Crores Only) by 15th December 2015 and further in case such extension is upto3 months past December 15th 2015, then the purchaser will be liable to pay 13% interest p.a. on the balance amount of consideration and if such delay is more than 3 months but upto 6 months, i.e. Past March 15th 2016 upto June 2016, the purchaser will pay an interest of 16% p.a. on such balance consideration for the period beyond the first three months.

(vi) It is specifically agreed by the parties that the purchaser is not at all liable to pay any interest on the balance amount, if such delay is due to any defect in title of the party of the first part or the inability of the Owners to Convey title to the Purchaser for any reason including but not limited to Title defect, Ownership issues, any Litigation or Boundary dispute.

14. That it is specifically agreed by and between the parties herein that every stage of the payment mentioned herein is the essence of the contract subject to terms agreed hereinabove in clause no.3.”

3. The Arbitration clause contained in clause 22 of the MoU, reads as under:

“22. That it is agreed by and