The court disposed of a petition under Section 11(6) of the Arbitration Act regarding a flat purchase agreement. It held that the dispute involves arbitration under the contract and appointed Sh. Beant Singh Bedi as the arbitrator.
Appointment of Sh. Beant Singh Bedi as arbitrator.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Arb. Case No. 135 of 2009 Date of decision: 15.9.2011
Shri Parveen Sharma
…..petitioner
vs.
Chandigarh Colonizers Pvt. Ltd respondent
CORAM: - HON’BLE MR. JUSTICE HEMANT GUPTA
Present: - Mr. Rajiv Kataria, Advocate for the petitioner.
Mr. R. K. Goyal, Advocate for Mr. A. R. Takkar, Advocate for respondent.
HEMANT GUPTA, J
Present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short the ‘Act’) is in respect of the disputes arising out of an Agreement dated 25.5.2007, whereby the petitioner has agreed to purchase a flat at Opera Garden, Zirakpur in the springdale tower to be constructed by the respondent.
As per the Clause 26 of the Agreement, the disputes between the parties are to be resolved by an Arbitrator. Clause 26 of the Agreement reads as under: -
“26 All disputes and differences arising out or in any way, touching or concerning this agreement (Except as to any matter, decision of which is expressly provided in the contract); shall be referred to the sole arbitration of Director of the seller company or his nominee. It will be no objection to such appointment if present appointee is an employee contract relates or that in course of
Arb. Case No. 135 of 2009
2
employment such appointee had expressed views on all or any of the matter in dispute of any of the final and binding on the parties to this contract. It is the term of this contract that in the event of such arbitrator to whom the matter is being referred is transferred or vacates his office or is unable to act for ay reason, then Director of the company shall appoint any person, to himself, on the mantle of arbitrator and said fresh appointee shall be entitled to proceed with the reference from the stage at which, it was left by his predecessor. The arbitrator shall have full power and authority to determine the venue of proceedings as well as the procedure for arbitration and he shall be authorized to pass a non-speaking order in case of dispute involving an amount upto Rs. 2 lacs (Rs. Two lacs) and no party would be entitled to challenge the award on that ground. The arbitrator is fully competent to orally hear the matter and dispose the proceedings on the basis of oral submissions, affidavits and documents without recording any formal evidence.”
It is pointed out by learned counsel for the petitioner that the respondent has failed to raise construction of the flats nor has delivered the possession of the flats.
In the reply filed, it is pointed out that the time of payment of installments was the essence of the Agreement and since, the petitioner has failed to make the payment before the due dates as annexed in the Agreement. Therefore the disputes are not liable to be referred to the Arbitrator.
However, during the course of argument, it is agreed by learned counsel for the parties that the dispute including the late payment or not raising the construction and
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delivery of possession of the flat are the disputes which are required to be decided by an Arbitrator.
From the list of Arbitrators, as suggested by learned counsel for respondent, Sh. Beant Singh Bedi, former District and Sessions Judge resident of house No. 2826, Phase-VI, Mohali is appointed as an Arbitrator to adjudicate upon the disputes between the parties. He shall be entitled to one set of fee as per Punjab and Haryana High Court (Arbitrator's Panel and Fee) Rules, 2011 in all the cases, but additional cost of Rs. 10,000/- in each case.
(HEMANT GUPTA) JUDGE
15.9.2011 preeti
2 issues framed by the court
Whether the dispute regarding the purchase agreement and clause 26 falls under the jurisdiction of the Arbitration and Conciliation Act, 1996.
Whether the appointment of an arbitrator is valid under the agreement between the parties.
2 provisions across 2 enactments
Shri Parveen Sharma
Chandigarh Colonizers Pvt. Ltd
Hemant Gupta
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
