Royal Orchids vs Kulbir Singh Kohli & Anr.
2022 Latest Caselaw 2345 Del

                           $~2
                           *     IN THE HIGH COURT OF DELHI AT NEW DELHI

                           %                                           Date of decision: 26.09.2022

                           +     FAO(OS) (COMM) 259/2022
                                 ROYAL ORCHIDS                                        ..... Appellant
                                             Through:            Mr.Mandeep       Singh        Vinaik,
                                                                 Mr.Deepak     Bashta,       Ms.Geeta
                                                                 Mohanty, Mr.Pawan Kumar Dhimra
                                                                 & Ms.Ragini Vinaik, Advs.

                                                     versus

                                 KULBIR SINGH KOHLI & ANR.                ..... Respondents
                                               Through: Mr.Kunal Tandon, Mr.Jaspreet Singh
                                                        Kapur & Mr.Manu Abhishek
                                                        Bhardwaj, Advs.

                                 CORAM:

                                 HON'BLE MR. JUSTICE SURESH KUMAR KAIT
                                 HON'BLE MR. JUSTICE SAURABH BANERJEE

                                                     J U D G M E N T (oral)

1. The present appeal has been filed by the appellant under Section 37(1)

(b) of the Arbitration and Conciliation Act, 1996 challenging the judgment

dated 23.08.2022 passed by learned Single Judge in OMP (I) (COMM)

192/2022, vide which petition under Section 9 of the Arbitration and

Conciliation Act, 1996 filed by the respondents has been dismissed.

2. Appellant is a business entity which has common management with

Signature Not Verified FAO(OS) (COMM) 259/2022 Page 1 of 4 Digitally Signed By:PREM BALA CHHABRA Signing Date:27.09.2022 19:05 Aero Club, known as Woodland Group. Over the last few decades, appellant

has been involved in and has successfully undertaken several construction

and infrastructure development projects in and around the National Capital

Region of Delhi.

3. Respondent nos.1 & 2 are spouses and are the co-owners of a plot of

land and in possession of freehold property bearing number K-1, built on

plot no.1, in K block, situated in the area of Village Basai Darapur, Rajouri

Garden, New Delhi.

4. Learned counsel for the appellant submits that in February, 2022,

appellant was approached by the respondents seeking a collaboration with

the appellant to construct and develop the project on their abovementioned

land. On 03.03.2022, parties entered into a Memorandum of Understanding

in terms of which the project had to be developed by the appellant at its own

cost in lieu of being paid 30% of the Sale proceeds. The appellant mobilised

its resources in order to fulfill its obligations in a timely manner and as part

of the planning process, refused other projects. An advance of Rs.1 crore

was paid to the respondents and the remaining part of the deposit was ready

and available with the appellant to deposit to the respondents.

5. Learned counsel also submits that appellant sent a show cause notice

Signature Not Verified FAO(OS) (COMM) 259/2022 Page 2 of 4 Digitally Signed By:PREM BALA CHHABRA Signing Date:27.09.2022 19:05 to the respondentS on 27.05.2022 to fulfil their obligations under the

Memorandum of Understanding. In response thereto, respondents also send

a notice to the appellant seeking cancellation of the above said agreement.

6. Learned counsel for appellant next submits that in light of disputes

and differences that arose between the appellant and the respondents, the

appellant petitioner vide Notice of Arbitration dated 04.06.2022 invoked

arbitration in accordance with Clause 21 of the Memorandum of

Understanding.

7. Thereafter appellant filed a petition under Section 9 of the Arbitration

and Conciliation Act, 1996 on 06.06.2022 and vide order dated 23.08.2022,

the same was dismissed by learned Single Judge. Hence, the present appeal.

8. Learned counsel appearing on behalf of the respondents has submitted

that the claims raised in the present appeal are disputed, however, fairly

conceded that the disputes inter se parties are arbitrable.

9. Learned counsel for the appellant submits that though he has not filed

a petition under Section 11 of the Arbitration and Conciliation Act, 1996, he

has no objection if this Court appoints an independent arbitrator. Learned

counsel for the respondents also has no objection to the same.

10. Accordingly, we hereby appoint Hon'ble Mr. Justice KG

Signature Not Verified FAO(OS) (COMM) 259/2022 Page 3 of 4 Digitally Signed By:PREM BALA CHHABRA Signing Date:27.09.2022 19:05 Balakrishnan, former Chief Justice of India (Mobile: 9717266700) the

sole arbitrator to adjudicate the disputes between the parties.

11. The fee of the learned Arbitrator shall be governed by the Fourth

Schedule of the Arbitration and Conciliation Act, 1996.

12. The learned Arbitrator shall ensure compliance of Section 12 of the

Arbitration and Conciliation Act, 1996 before commencing the arbitration.

13. With aforesaid, the present appeal is disposed of accordingly.

(SURESH KUMAR KAIT) JUDGE

(SAURABH BANERJEE) JUDGE SEPTEMBER 26, 2022/ab

Signature Not Verified FAO(OS) (COMM) 259/2022 Page 4 of 4 Digitally Signed By:PREM BALA CHHABRA Signing Date:27.09.2022 19:05