Disputes from the Collaboration and Addendum Agreements are arbitrable and must be resolved by appointed arbitrators as per arbitration law.

JUDGMENT

1. Petitioner No.1- M/s Tarun Aggarwal Projects LLP and petitioner No.2- M/s Prajakta Colonilers Pvt. Ltd. entered into a Collaboration Agreement dated 07.05.2009 in the capacity of ‘owner’ of land admeasuring approx. 6.06875 acres, situated in revenue estates of Village- Nangli and Badshahpur, Tehsil & District Gurgaon, Haryana with respondent being the ‘developer’ for development of a residential colony in Sector-62 and 65, Gurugram. According to petitioner, under the aforesaid Collaboration Agreement, for amalgation of the aforesaid land a part of which was in joint ownership with the respondent and which is located adjacent to the colony being developed by the respondent, the respondent had agreed to apply for additional license of the land. As per the Collaboration Agreement in question, respondent was required to complete necessary development works on the licensed land of petitioners within 36 months from the date of obtaining possession of the licensed land, which was to be handed over by the petitioners after all necessary approvals, sanctions and licenses were obtained and facilitated by the respondent. Further as per the Collaboration Agreement, the cost for development of the work was to be borne by the respondent, whereas costs of obtaining sanction/approval and license were to be borne by the petitioners.

2. According to petitioners, in terms of the Collaboration Agreement, after completion of the development work, petitioners were to be allotted 2662 sq. yds., per acre of the developed plots in the land of petitioners or anywhere else in the residential colony being developed by the respondent by executing proper conveyance of title in favour of the prospective buyers or in favour of each other or their nominee in respect of their respective share.

3. It is averred in the petition that in terms of aforesaid Collaboration Agreement, respondent did not take any step to obtain license on the land owned by the petitioner and in a deceitful manner, obtained an ex-parte order of partition in respect of a part of land which was subject matter of Collaboration Agreement and some other parcels of land which were jointly owned by petitioners and respondent. Further averred that respondent had applied for license to develop a town over the land which had fallen to its share and also for the lands which were jointly owned with petitioners and therefore, petitioners filed four appeals before the Collector, Gurgaon and as well as wrote to Director General, Town & Country Planning, Haryana objecting to issuance of license to respondent. However, respondent thereafter induced petitioners to enter into an Addendum dated 19.04.2011 to the Collaboration Agreement and offered to irrevocably allot 05 plots of total area measuring 2160 sq.yd. approximately as non-refundable security/consideration for due performance of all of their obligations. Thereby, in terms of Addendum Agreement dated 19.04.2011 the petitioners and respondent amicably settled all their disputes with the understanding that the land in question was still capable of being licensed into a residential plotted colony, after being released from acquisition proceedings in terms of policy decisions of State Government. Thereby, in terms of Addendum dated 19.04.2011 parties agreed to apply for license within 15 days thereof and further agreed that the respondent shall carry the development work for providing for all kinds of amenities, facilities, utilities, basic infrastructure facilities including lighting, potable water, landscaping, sewerage, etc. at the cost & expenses of petitioners @ Rs.40 lac per acre and