SANJAY GAMBHIR Vs. BDR BUILDERS AND DEVELOPERS PVT. LTD.

JUDGEMENT

(1.) This appeal by Mr. Sanjay Gambhir under Section 37 (2) (b) of the Arbitration and Conciliation Act, 1996 (,,Act) is directed against the order dated 18th July, 2015 passed by the Sole Arbitrator in two applications filed by the Claimants i.e., BDR Builders & Developers Pvt. Ltd. (,,BDR) in the arbitral proceedings under Section 17 of the Act initiated against the present Appellant apart from the Directors of Renaissance Buildcon Co. Pvt. Ltd. ('Renaissance')

(2.) The Appellant herein (who was Respondent No. 2 in the arbitral proceedings) is aggrieved to the extent that in the impugned order the learned Arbitrator has directed the Appellant including his legal heirs, assigns, nominees and agents etc. not to deal in any manner or sell, transfer, alienate or part with possession of all and any movable and immovable assets in his power and possession or to which he may be personally entitled.

(3.) The background to this appeal is that two Memoranda of Understanding (,,MOUs) were entered into between Renaissance and BDR as first and second parties and the Appellant herein as third party on 6th and 7th February, 2009. By the first MOU dated 6th February, 2009, BDR agreed to advance to Renaissance a sum of Rs. 3 crores, out of which Rs. 35,00,000 was by cheque dated 5th February, 2009 and the balance "by way of cash" as loan against pledge/mortgage of the property being agricultural land measuring 38 Bigha 18 Biswa acres 15.366 acres located at village Rampur Kalan, Tehsil Rajpura, Punjab. The Appellant herein stood as guarantor of the said transaction. The loan for a period of six months commencing from the date of MOU i.e., 6th February, 2009. Renaissance agreed to pay BDR compound interest @ 3.5% per month compounded monthly commencing from the date of advancing the loan till the date of actual repayment.