BABANRAO RAJARAM PUND Vs. SAMARTH BUILDERS AND DEVELOPERS

JUDGEMENT

(1.) Leave granted.

(2.) The bone of contention in the instant proceedings is whether Clause 18 of the Development Agreement dtd. 29/5/2014 possesses the necessary ingredients to constitute a legal and valid arbitration agreement? The genesis of the dispute lies in the aforesaid agreement executed between the parties for construction of an apartment complex called "Amay Apartments". The construction was to be carried out by Respondent No.1 partnership firm on the land owned by the Appellant. Respondent No. 2 is the partner of Respondent No. 1 partnership firm.

(3.) The Appellant owns and possesses the land bearing Plot Nos. 13 & 14, measuring 4000 sq. ft situated in Village Deolai, District Aurangabad, Maharashtra. Appellant harbored a desire to develop the said property through the construction of residential and commercial complexes. Respondent No.1 is a developer engaged in the business of construction and development of residential and commercial buildings. When it came to know that the Appellant wished to develop his property, the First Respondent approached the Appellant and offered to develop the site. The Appellant and Respondent No. 1, thus, entered into a 'Development Agreement' and pursuant thereto the Appellant also executed a General Power of Attorney (GPA), in favour of Respondent No. 1.