M/S AVINASH HITECH CITY 2 SOCIETY & ORS. versus BODDU MANIKYA MALINI & ANR. ETC.

M/S AVINASH HITECH CITY 2 SOCIETY & ORS. versus BODDU MANIKYA MALINI & ANR. ETC.

Clause 19 of the Addendum applies to any dispute or difference arising among the parties relating to the agreement; the dispute regarding sharing rent is sufficiently connected to the Addendum and Agreements, so it must be referred to arbitration as provided in the Addendum. Both High Court and District Judge erred in not referring the dispute to arbitration.

Parties
Appellant: M/S Avinash Hitech City 2 Society; Respondent: Boddu Manikya Malini; HCL Technologies Limited
Jurisdiction
India
Judgment Date
06 September 2019
Procedural Posture
Civil Appeal / Supreme Court Decision After Appeals From High Court Judgment Dismissing Applications Under Arbitration and Conciliation Act, 1996 S. 8
Outcome
Appeal allowed; orders of High Court and District Judge set aside; applications under Section 8 of Arbitration and Conciliation Act, 1996 allowed.
Legal Topics
Arbitration Agreement, Reference to Arbitration, Societies Registration Act, Development Agreements, Rent Distribution
Arbitration Property Law Societies Arbitration Agreement Reference to Arbitration Societies Registration Act Development Agreements Rent Distribution

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Parties

M/S Avinash Hitech City 2 Society

Appellant

Boddu Manikya Malini

Respondent

HCL Technologies Limited

Procedural Posture

Civil Appeal / Supreme Court Decision After Appeals From High Court Judgment Dismissing Applications Under Arbitration and Conciliation Act, 1996 S. 8

Legal Issues

  1. 1 Whether disputes regarding sharing of rent between owners/societies and developer, governed by Development Agreements and Addendum, are to be referred to arbitration under Clause 19 of the Addendum
  2. 2 Whether the High Court and District Judge erred in not referring rent sharing disputes to arbitration under s. 8 of Arbitration and Conciliation Act, 1996

Ratio Decidendi

Clause 19 of the Addendum applies to any dispute or difference arising among the parties relating to the agreement; the dispute regarding sharing rent is sufficiently connected to the Addendum and Agreements, so it must be referred to arbitration as provided in the Addendum. Both High Court and District Judge erred in not referring the dispute to arbitration.

Court Disposition

Appeal allowed; orders of High Court and District Judge set aside; applications under Section 8 of Arbitration and Conciliation Act, 1996 allowed.

Orders

  • Disputes between respondents and appellants to be referred to Arbitration.
  • No costs.