Property Sale Dispute Resolution

Summary

The Arbitration and Conciliation Act, 1996, governs the dispute between Mr. Mohanraj and Mr. Sunil over a property sale in Bangalore. The seller must refund the advance with 18% p.A. Interest and a penalty of Rs. 1,00,00,000 if unable to complete the sale. The dispute is currently under arbitration. The Arbitral Tribunal can rule on its jurisdiction and may direct part performance under the Specific Relief Act, 1963, based on the Sale Agreements terms. Legal counsel is recommended for precise advice.

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Mr. Mohanraj entered in to an Agreement of sale with Mr. Sunil for the purpose of buying house property bearing No. *, 4th Cross, VII Block, Bangalore-*, measuring * x * feet, and paid an advance amount of Rs. *,*,*/-( Rupees Ninety Nine lakhs only). The sale consideration amount fixed for the said sale was Rs.*,*,*,*/- (Rupees Five Crores only) only. It was further agreed between the parties that in case of any dispute, the dispute shall be referred to an Arbitral Tribunal consisting of a Sole Arbitrator or Arbitral Tribunal consisting of * Arbitrators and the provisions of the Arbitration and Conciliation Act. *, shall apply to the arbitration proceedings. Jayanagar is a beautiful commercial and residential area and it is known for its cool and pollution free atmosphere. Mr. Mohanraj (purchaser) further agreed to pay the remaining balance amount of Rs.*,*,*,* (Rs. Four Crores and One lakh only) towards the sale consideration amount to Mr. Sunil (seller) within 3 months. Mr. Sunil handed over all the original documents pertaining to title in respect of the aforesaid property to the purchaser Mr. Mohanraj. Meanwhile in a month’s time the property prices in the said locality increased by *% due to rise in demand for house properties and for other reasons which usually govern the real estate market. After the expiry of 45 days from the date of the agreement of sale Mr. Mohanraj approached the seller Mr. Sunil and informed him that he is ready and willing to perform his part of the contract by paying the remaining balance amount and accordingly requested him to fix a date for completion of sale transaction and also for registration of Absolute Sale Deed in respect of the aforesaid site property in favour of Mr. Mohanraj. At this juncture, the seller Mr. Sunil informed Mr. Mohanraj that he would not be able to complete the sale transaction as his family members consisting of his wife, two sons and a daughter have clearly instructed him to cancel the said sale agreement. According to clause * of the Sale Agreement, if seller is unable to perform his part of the contract, he shall refund the advance amount paid along with interest to be calculated at * % p.a. and also penalty amount of Rs. *,*,*,*/- only. The purchaser wanted to buy a site in Jayanagar only. Aggrieved by the negative attitude of the Seller to sell the site, Mr. Mohanraj caused a legal notice demanding the seller to execute an absolute sale deed in respect of aforesaid property by receiving the remaining amount of sale consideration. He also cautioned the seller that if he fails to comply with his demands within 15 days he would initiate Arbitration proceedings and accordingly named his Arbitrator in the Legal Notice. The seller failed to comply with the demands raised by the purchaser and subsequently an Arbitral Tribunal came to be constituted. Accordingly, the dispute is now pending before the Arbitral Tribunal.
Thank you for the detailed information, Mr. Mohanraj. Based on your situation, it's important to understand that:
- The Arbitration and Conciliation Act, *, is applicable in resolving your dispute.
- The seller, Mr. Sunil, is obligated to refund the advance amount with *% p.a. interest and a penalty of Rs. *,*,*,* according to clause * of the Sale Agreement.
- The dispute is currently under the Arbitral Tribunal's consideration.
It is advisable to follow the process with patience as arbitration can take some time.
Whether the Claimant proves that this honorable tribunal has jurisdiction to try the matter and pass an award directing part performance under the Provisions of Specific Relief Act? could you please provide an answer to the question from the counsels for the respondents side
According to the Arbitration and Conciliation Act, *:
- The arbitral tribunal has the power to rule on its own jurisdiction, including on any objections with respect to the existence or validity of the arbitration agreement.
- Under the Specific Relief Act, *, the arbitral tribunal can pass an award directing part performance, if it has jurisdiction and if the conditions of the Act are met.
Please note that this is general legal information and it's always advisable to seek legal counsel.
could you please rewrite the answer to the question keepinf in mind the facts of the case given before asking the question
Answer: In consideration of the given facts, the Arbitral Tribunal has the authority to decide on its jurisdiction as per the Arbitration and Conciliation Act, *. However, directing part performance under the Specific Relief Act, *, would depend on the contractual obligations and terms agreed upon in the Sale Agreement. This is only general information, and for accurate advice, legal counsel should be sought.