- (1.) Special Leave Petition (Civil) No.7334 of 2010 and Special Leave Petition (Civil) No.11778 of 2010 have been filed by M/s Today Homes and Infrastructure Pvt. Ltd. and Mapletree Properties Pvt. Ltd. respectively, against a common judgment and order dated 08.10.2009, passed by the Punjab & Haryana High Court in Arbitration Case No.76 of 2007. Special Leave Petition (Civil) No.10795 of 2010 has been separately filed by M/s Mapletree Properties Pvt. Ltd. against the judgment and order dated 26.03.2010, passed by the aforesaid High Court in R.A. No.49-CII/2010 (of M) in Arbitration Case No.76 of 2007. In addition I.A. No.2 of 2010 has been filed by M/s Mapletree Properties Pvt. Ltd. in Special Leave Petition (Civil) No.26173 of 2010 filed by Ludhiana Improvement Trust for vacating the interim order of stay passed on 15.09.2010, or modification thereof. I.A. No.3 of 2010 has been filed by Ludhiana Improvement Trust in the said Special Leave Petition to bring on record certain additional documents. Both the said IAs have been taken up for hearing along with the four Special Leave Petitions, as referred to hereinabove. Leave granted in all the Special Leave Petitions.
(2.) The Ludhiana Improvement Trust, hereinafter referred to as "the Trust", the Appellant in the appeal arising out of SLP(C) No. 26173 of 2010, was constituted under the Punjab Town Improvement Act, 1922, hereinafter referred to as "the 1922 Act", for the planned development of the city of Ludhiana. For the purpose of construction of the City Centre in Ludhiana, the Trust invited bids by a Request of Proposal document dated 15.03.2005, with the intention of entering into a Joint-Venture with developers in the private sector. After evaluation of the bids, M/s. Today Homes and Infrastructure Pvt. Ltd., the Appellant in the appeal arising out of SLP(C) No. 7334 of 2010, was found to be the highest bidder and a Letter of Intent was issued in its favour on 18.05.2005, for development of the City Centre, Ludhiana.
(3.) The records indicate that after the Letter of Intent was issued in its favour, M/s. Today Homes and Infrastructure Pvt. Ltd. deposited Rs. 3.72 crores with the Trust as Performance Security. According to the agreement arrived at between the parties, the successful bidder would ultimately be required to pay to the Trust Rs.371.12 crores. The records further reveal that possession of an area measuring 25.59 acres was handed over to the successful bidder by the Trust on 24.05.2005 by way of Concession Agreement. A Tripartite Agreement was signed on 25.04.2005, between M/s. Today Homes and Infrastructure Pvt. Ltd., the Trust and the HDFC Bank. In terms of the said agreement, the entire proceeds from booking of the saleable areas were required to be deposited in the Joint Escrow Account of the Company and the Trust with the HDFC Bank, of which 30% was to be credited directly to the account of the Trust and 70% was to be deposited to the account of the Company. Disputes arose regarding the deposits made in the Escrow Account and on 12.09.2006, the Trust issued a letter to the Company seeking an explanation regarding the allegations. On the very next day, a reply was sent on behalf of the Company denying the allegations and indicating that its accounts could be scrutinised, and, if the explanation was not found to be satisfactory, the dispute could be referred to arbitration. In fact, on 14.09.2006, the Trust wrote to M/s. Today Homes and Infrastructure Pvt. Ltd. indicating that it was going to appoint an arbitrator within the next two days. However, before the expiry of the said period, on 15.09.2006, the Company filed an application before the Chief Justice of the Punjab and Haryana High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996, hereinafter referred to as "the 1996 Act", being Arbitration Application No. 263 of 2006.;