THE HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY ARBITRATION APPLICATION No.303 OF 2024

JUDGMENT:

1.1. The applicant and her two sisters Mrs. Sukhdeep Kaur Mehta and Mrs. Gagandeep Kaur Anand are joint owners of the property bearing Municipal House No.8-2-699/1 (Old) and 8-2-699/1/A (New) consisting of Ground and First Floor, admeasuring 554 square yards, forming part of Survey No.346 situated at Bhola Nagar, Road No.12, Jubilee Hills (presently Banjara Hills) Hyderabad (hereinafter referred to as ‘schedule property’).

1.2. The applicant along with her two sisters has entered into a registered Development Agreement cum General Power of Attorney bearing document No.3778 of 2014 dated 01.10.2014 (DAGPA) with the respondent for construction of a commercial complex in the schedule property.

1.3. As per the terms and conditions of the DAGPA, it was agreed that the parties will share built up area in the ratio of 35% : 65% i.e., 65% to the owners and 35% to the developer. Grievance of the applicant is that the respondent obtained permission for construction of a building on the schedule property vide Permit No.53569/HO/C2/CIR-

10/2016 dated 14.08.2019 from the Greater Hyderabad Municipal Corporation, Hyderabad, (GHMC) for construction of two cellars for parking, ground and four upper floors. But, the respondent constructed ground and three upper floors only raising the height of the ground floor and has failed to construct the fourth floor as per the sanctioned plan. It is stated that the construction was to be completed by the respondent within a period of twenty four (24) months with a grace period of six (6) months i.e., 30 months in total, from the date of approval by the GHMC. In case, the respondent fails to complete the building and fails to deliver their built up area share to the applicant and her sisters within the stipulated period, the respondent will be liable to pay Rs.2,00,000/- (Rupees two lakhs only) per month to the applicant and her two sisters who are entitled to 1/3^rd each i.e., Rs.66,666.66 paise.

1.4. It is submitted that as per Clause 4 of the DAGPA, the respondent is liable to pay an amount of Rs.36,66,666.30 paise (Rupees thirty six lakhs sixty six thousand and six hundred and sixty six and thirty paise only) to the applicant for delay of 55 months i.e., from 14.08.2019 till May 2024 in completing the construction and the liability of payment of Rs.66,666.66 per month continues from 01.06.2024 onwards till construction of fourth floor.

1.5. The case of the applicant is that (i) there was delay by the respondent in obtaining the sanctioned plan, and (ii) the respondent has not handed over 65% of the fourth floor to the applicant and her sisters.

1.6. It is submitted that the respondent has entered into supplementary agreement on 07.06.2018 to which the applicant is not a signatory. Signature of the applicant in the said supplementary agreement dated 07.06.2018 is a forged one, as such, the same is not binding her. By forging signature of the applicant in the supplementary agreement dated 07.06.2018, the respondent caused mental agony, anxiety and disturbance to the applicant, as such, the respondent is liable to pay Rs.1.00 crore to the applicant towards damages. In addition to that the respondent is liable to pay property tax in respect of the subject building.

1.7. The applicant has issued legal notice dated 06.05.2024 to the respondent invoking arbitration clause and nominated Justice Vilas V. Afzulpurkar, Former Judge of the erstwhile High Court for the State of Telangana and the State of Andhra Pradesh, as Arbitrator for deciding the disputes between the applicant and the respondent. Even after service of notice, the respondent neither replied nor agreed for appointment of Arbitrator. Hence, this application.

2.1. The case of the respondent is that the subject building was constructed in accordance with the sanctioned plan and Occupancy Certificate (OC) was issued by the GHMC in respect of the subject building co