IN THE HIGH COURT OF JUDICATURE AT MADRAS Judgment Reserved on : 22.09.2022 Judgment Pronounced on : 28.09.2022 CORAM :

THE HON'BLE MR.JUSTICE PARESH UPADHYAY AND THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY O.S.A.No.341 of 2019 M/s.Macro Marvel Projects Ltd.

Rep. by its Executive Director, Ragu Kumar .. Appellant Versus

1. J.Vengatesh

2. A.R.Gomathi

3. V.Annalakshmi 4. S.Chockalingam

5. K.Natarajan

6. Soundarapandian .. Respondents Prayer : Original Side Appeal filed under 37(2) of the Arbitration & Conciliation Act, 1996 r/w Clause 15 of the Letters Patent to set aside the judgment and decree of the learned Judge of the Original Side of this Court passed in O.P.No.235 of 2008, dated 19.08.2019 and allow the above appeal.

For Appellant : Mr.S.R.Raghunathan and Mr.Vigneshwar Elango for Mr.P.Elango For Respondents : Mr.V.Raghavachari for Mr.R.Veeramani, for RR-1 & 3 : Mr.P.L.Narayanan, for R2

JUDGMENT

D.BHARATHA CHAKRAVARTHY, J.

A. The Appeal :

This intra-Court appeal is filed against the order of the learned Judge, dated 19.08.2019, whereby, the learned Judge allowed the Original Petition filed by the respondents 1 to 3 under Section 34 of the Arbitration and Conciliation Act, 1996 and set aside the award, dated 21.01.2008 passed by the Arbitral Tribunal in favour of the appellant, which was in the nature of specific performance of the contract being the sale of plots and instead, awarded a sum of Rs.50,00,000/- to the appellant.

B. The Facts in brief :

2. The brief facts leading to the filing of this appeal are as follows:-

The appellant and the respondents 1 to 3 entered into an agreement of sale, dated 17.02.2004. As per the same, the respondents are the owners of the property mentioned in the schedule to the agreement totally ad- measuring 8.21 acres in Manapakkam village, Sriperumbudur Taluk, Kancheepuram District. By the said agreement, they agreed to sell the same to the appellant or its nominees and the appellant will promote the project of independent residential houses. The sale consideration payable by the appellant/developer will be Rs.3,85,000/- per C.M.D.A approved ground of 2400 Sq.ft. The appellant/developer had also undertaken to pay a sum of Rs.1,00,00,000/- as advance to be adjusted in the sale consideration, which included a sum of Rs.35,00,000/- already paid by the appellant and the balance of Rs.65,00,000/- have to paid after the appellant/developer avails project finance from its bankers by mortgaging the schedule property. The appellant was also authorised to obtain building license and do all things necessary for the development of the project. The appellant/developer was also free to enter into the sale agreement for sale of the plots except a few plots which were specifically retained by the vendor. As per the agreement, any dispute arising out of the same shall be referred to arbitration and it is useful to extract clause No.17 which reads as follows:-

" 17. Any dispute between the parties to this agreement in regard to the interpretation of this agreement and of any matter arising out of this agreement shall be referred to arbitration under the provisions of the Arbitration Act to abitrators - one nominated by each party. Any award given in any such arbitration proceedings shall be final and binding on the parties to this agreement. The venue of the arbitration proceedings shall be the City of Chennai only."

Thereafter, a supplementary agreement was also entered into between the parties on 12.05.2004, whereby, the sale consideration was increased from Rs.3.85 lakhs per plot to Rs.4.12 lakhs per plot. Pursuant to the agreement, development charges were paid to the Chennai Metropolitan Development Authority on 04.05.2005. Thereafter, on 26.09.2005, the respondents herein cancelled the Power of Attorney in favour of one M.Arumugam who was only dealing on their behalf with the appellant/developer. The said Arumugam is the father-in-law of the first respondent, husband of the second respondent and father of the third