Case: Universal Consortium of Engineers Pvt. Ltd. Vs. Sri Kanak Mitra & Anr.
Excerpt
Disputes arising between the Petitioner (the Developer) and the Respondent (Owner) due to giving out more land to the Respondent and lack of notice under section 21 of Arbitration and Conciliation Act 1996.
Facts of the Case
The construction of the property was finished and the owner’s shares were transferred to the developer on 20.01.2018, 24.02.2018, and 11.04.2018. The Petitioner (Developer) mistakenly wide of the mark provided more land to the Respondent (owner). The Petitioner states that the Respondent needs to pay off the price of the extended land also, as the Petitioner has already put money into removing the tenants on the land. Taking this particular action by the Petitioner has affected his reputation and goodwill in a negative way. The Respondents stated that according to the law, notice is mandatory under section 21 of the Act of 1996 for proceedings of the arbitration process.
Arguments of Petitioner
The letter was written by the Petitioner dated 01.02.2019, states that in the commercial perspective the Petitioner has clearly given the notice for the arbitration process under section 21 of the Act of 1996. They further state that in a commercial dispute, a notice asking for arbitration should not be constructed very strictly.
Arguments of Respondent
The Respondents argued the case on three major points. Firstly, in the absence of notice under Section 21 of the Arbitration and Conciliation Act 1996 by the Petitioner, so the arbitration process shouldn’t be provided. Secondly, as disputes were arising out of the said agreement, the respondents appealed and filed a complaint before the National Consumer Forum, New Delhi. Lastly, the Respondents filed a complaint that the Agreement was not registered under section 17 of the Registration Act. This point was not merely argued in the Court as the Registration Act wasn’t existing in the year 2006.
Court’s Decision
All the statements raised by the Respondent were rejected. As the Petitioner’s letter stated that in a commercial dispute, the Petitioner has clearly given the notice for arbitration. Further, the Petitioner is not a consumer, so a complaint filed by the Respondent in the National Consumer Forum, New Delhi is not acceptable
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