- (1.) An arbitral award was passed on 19.2.2008 in which the Arbitrator allowed deduction of 10% of the amount paid by the appellant. Objections were filed against the award, which were dismissed vide the impugned order.
(2.) The backdrop of the matter is that the respondent, vide its memo dated 2.12.1995, made allotment of 8.7 acres of land to the appellant at total cost of Rs.725.32 lac, for which, deposit of 10% of the total cost i.e. Rs.72.53 lac was demanded from the appellant. The said amount was deposited by the appellant on 23.12.1995. Thereafter, a letter was issued by the respondent demanding payment of further installment, which was 15% of the total cost. The amount was to be deposited within 30 days from the letter of intent i.e. 17.5.1996. The amount was deposited by the appellant.
(3.) Remaining 75% of the amount was payable in five equal annual installments and letter of acceptance was issued by the respondent to the appellant and an agreement was also signed between the parties. Possession of the land was to be delivered within 90 days from the date of issue of the allotment letter but the respondent failed to hand over the land as committed. The appellant waited for the respondent to perform its part of the contract. Since the respondent did not handover the possession for a long period, the appellant was constrained to abandon the whole contract and decided to surrender the land. Accordingly, a letter was written to the respondent and refund was claimed. Since the needful was not done by the respondent, the matter was referred to the Arbitrator as per the agreement between the parties and the Arbitrator passed the award as mentioned above at the outset.;