DELHI DEVELOPMENT AUTHORITY Vs. JACKSON ENGINEERS PRIVATE LIMITED
LAWS(DLH)-1996-8-46
HIGH COURT OF DELHI
Decided on August 26,1996

DELHI DEVELOPMENT AUTHORITY Appellant
VERSUS
JACKSON ENGINEERS (PRIVATE) LIMITED Respondents

JUDGEMENT

R.C.Lahoti, J. - (1.). This is an appeal directed against an order of learned Single Judge of this Court who has under Section 20 of Arbitration Act, 1940 directed the disputes between the parties to be referred to arbitration by a retired Judge of this Court.
(2.). The relevant facts may briefly be noticed. On 8.8.95 an auction was held by the respondent-DDA for the sale of leasehold rights in vacant plot No.C-149 measuring 1010.32 sq.mtrs. in Rewari Line, Phase-11, New Delhi. The petitioner paid Rs.4,85,000.00 . On 12.9.85 the petitioner was issued an allotment-cum- demand letter requiring the petitioner to pay the balance amount of Rs.l4,55,011.00 . The petitioner did not pay the balance amount as it had come to its notice that there was encroachment on the plot auctioned by the DDA and it may not succeed in getting vacant possession of the plot. The DDA tried to sort out the matter. On 10.6.87, the petitioner tendered the balance amount by demand draft which was returned by the DDA. It appears that the plot was once again encroached upon by unauthorised persons. The DDA sought for extension of time from the Government of India for payment of balance amount by the petitioner. Ultimately the present petition under Section 20 of the Arbitration Act has been filed on 25.1.89 wherein the petitioner has sought for the arbitration agreement between the parties being ordered to be filed in the Court and the dispute between the parties being referred to the sole arbitration of the Lt. Governor of Delhi or his nominee that may be appointed by him.
(3.), The prayer for appointment of arbitrator was opposed by the DDA mainly on the ground that there was no arbitration agreement between the parties based on which relief could be allowed to the petitioner.
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