w w w . L a w y e r S e r v i c e s . i n



A. Raghunandan Raj v/s Fortune Monarch Associates


Company & Directors' Information:- RAJ CORPORATION LIMITED [Active] CIN = U74900UP2008PLC035742

Company & Directors' Information:- FORTUNE ASSOCIATES PRIVATE LIMITED [Active] CIN = U13209OR2008PTC010079

Company & Directors' Information:- C P AND ASSOCIATES PRIVATE LIMITED [Active] CIN = U45201DL2001PTC111850

Company & Directors' Information:- C M ASSOCIATES PRIVATE LIMITED [Active] CIN = U51101CH2010PTC032255

Company & Directors' Information:- R A S ASSOCIATES LTD [Active] CIN = U74210WB1988PLC045492

Company & Directors' Information:- A P S ASSOCIATES PVT LTD [Active] CIN = U74210PB1978PTC003847

Company & Directors' Information:- N S P ASSOCIATES (INDIA) PRIVATE LIMITED [Active] CIN = U74899DL1996PTC082177

Company & Directors' Information:- B B C ASSOCIATES LIMITED [Active] CIN = U45309TN1988PLC015954

Company & Directors' Information:- S K N ASSOCIATES PVT LTD [Active] CIN = U74899DL1983PTC016634

Company & Directors' Information:- B N T ASSOCIATES LTD [Strike Off] CIN = U17119WB1935PLC008284

Company & Directors' Information:- P V M ASSOCIATES PVT LTD [Active] CIN = U51226DL1987PTC311009

Company & Directors' Information:- P V M ASSOCIATES PVT LTD [Active] CIN = U51226HR1987PTC036321

Company & Directors' Information:- A P ASSOCIATES PVT LTD [Active] CIN = U72200AS1994PTC004194

Company & Directors' Information:- S. P. ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC066986

Company & Directors' Information:- AT ASSOCIATES PRIVATE LIMITED [Active] CIN = U51109OR2008PTC009787

Company & Directors' Information:- F AND A ASSOCIATES PRIVATE LIMITED [Active] CIN = U74120UP2015PTC075062

Company & Directors' Information:- D C P ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U51311DL1987PTC026667

Company & Directors' Information:- RAGHUNANDAN PVT LTD [Converted to LLP] CIN = U67120PB1981PTC004446

Company & Directors' Information:- RAJ COMPANY PRIVATE LIMITED [Active] CIN = U74999PB1949PTC000515

Company & Directors' Information:- A R ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1987PTC029533

Company & Directors' Information:- N S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74210DL2002PTC117462

Company & Directors' Information:- K V ASSOCIATES PVT LTD [Active] CIN = U01122PB1986PTC006863

Company & Directors' Information:- K P ASSOCIATES (INDIA) PRIVATE LIMITED [Active] CIN = U70101WB1997PTC085826

Company & Directors' Information:- D V ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45201CH2000PTC024072

Company & Directors' Information:- P P ASSOCIATES PVT LTD [Strike Off] CIN = U51228PB1990PTC010014

Company & Directors' Information:- I J ASSOCIATES PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74899DL1988PTC032756

Company & Directors' Information:- P K C & ASSOCIATES PVT LTD [Converted to LLP and Dissolved] CIN = U45202WB1987PTC041774

Company & Directors' Information:- H S AND ASSOCIATES PVT LTD [Active] CIN = U55101AS1988PTC002910

Company & Directors' Information:- M P D ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1982PTC013982

Company & Directors' Information:- M S ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC038395

Company & Directors' Information:- J S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1987PTC028180

Company & Directors' Information:- A B R AND ASSOCIATES PRIVATE LIMITED [Active] CIN = U70101DL2004PTC123935

Company & Directors' Information:- V S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC068018

Company & Directors' Information:- L S ASSOCIATES PVT LTD [Strike Off] CIN = U74140WB1985PTC039501

Company & Directors' Information:- P. S. ASSOCIATES PRIVATE LIMITED [Active] CIN = U45201DL1984PTC018057

Company & Directors' Information:- O & S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74210TN2004PTC053764

Company & Directors' Information:- S A S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1991PTC045528

Company & Directors' Information:- U K E AND ASSOCIATES PRIVATE LIMITED [Active] CIN = U70109OR1995PTC004230

Company & Directors' Information:- P. S. D. S. ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015217

Company & Directors' Information:- G RAJ & COMPANY PVT LTD [Active] CIN = U67120WB1993PTC058140

Company & Directors' Information:- V K ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015519

Company & Directors' Information:- A AND A ASSOCIATES PVT LTD [Converted to LLP] CIN = U74140PB1989PTC009864

Company & Directors' Information:- S S ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74899DL1986PTC023665

Company & Directors' Information:- L R ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U70101DL1999PTC100897

Company & Directors' Information:- H B ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45201AS2003PTC007275

Company & Directors' Information:- R. S. ASSOCIATES PRIVATE LIMITED [Active] CIN = U51900HR2011PTC042294

Company & Directors' Information:- R M RAJ AND CO PRIVATE LIMITED [Strike Off] CIN = U99999DL1952PTC002146

Company & Directors' Information:- A. M. ASSOCIATES PRIVATE LIMITED [Active] CIN = U74900JK2012PTC003760

Company & Directors' Information:- S A R C ASSOCIATES PRIVATE LIMITED [Active] CIN = U74140DL2010PTC209285

Company & Directors' Information:- K M ASSOCIATES PRIVATE LIMITED [Active] CIN = U55101DL2001PTC110937

Company & Directors' Information:- G L S ASSOCIATES PRIVATE LIMITED [Active] CIN = U70101DL1999PTC102336

Company & Directors' Information:- E K ASSOCIATES PRIVATE LIMITED [Active] CIN = U52311OR1995PTC003828

Company & Directors' Information:- M AND A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054477

Company & Directors' Information:- B R ASSOCIATES PRIVATE LIMITED [Active] CIN = U28181UP1993PTC015740

Company & Directors' Information:- G R C & ASSOCIATES PRIVATE LIMITED [Active] CIN = U74140OR2015PTC018811

Company & Directors' Information:- R T & ASSOCIATES PRIVATE LIMITED [Active] CIN = U74210DL2002PTC115350

Company & Directors' Information:- 3 P' ASSOCIATES PRIVATE LIMITED [Active] CIN = U70200DL2012PTC242811

Company & Directors' Information:- H R ASSOCIATES PRIVATE LIMITED [Active] CIN = U45200DL2012PTC231105

Company & Directors' Information:- M AND W ASSOCIATES PRIVATE LIMITED [Active] CIN = U93090KA2004PTC035154

Company & Directors' Information:- M M S ASSOCIATES PVT. LTD. [Not available for efiling] CIN = U74210RJ1995PTC009405

Company & Directors' Information:- S AND A ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1987PTC028051

Company & Directors' Information:- D. P. ASSOCIATES PVT. LTD. [Strike Off] CIN = U45203OR1993PTC003418

Company & Directors' Information:- T R J ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1988PTC032265

Company & Directors' Information:- K B ASSOCIATES LIMITED [Active] CIN = U51909DL1983PLC016142

Company & Directors' Information:- H. J. ASSOCIATES PRIVATE LIMITED [Converted to LLP] CIN = U51219DL1984PTC017269

Company & Directors' Information:- Y P ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1983PTC053658

Company & Directors' Information:- S L ASSOCIATES PVT LTD [Active] CIN = U74899DL1980PTC010620

Company & Directors' Information:- M AND N ASSOCIATES PRIVATE LIMITED [Active] CIN = U67120MP1994PTC008890

Company & Directors' Information:- C T ASSOCIATES PRIVATE LIMITED [Active] CIN = U74910MH1996PTC102599

Company & Directors' Information:- B L G ASSOCIATES PVT LTD [Strike Off] CIN = U29220DL1981PTC011731

Company & Directors' Information:- D J AND ASSOCIATES PVT LTD [Active] CIN = U51109AS1994PTC004126

Company & Directors' Information:- R R ASSOCIATES PVT LTD [Active] CIN = U70101WB1987PTC042757

Company & Directors' Information:- R K ASSOCIATES PVT LTD [Active] CIN = U74899DL1980PTC010641

Company & Directors' Information:- RAJ & RAJ PVT. LTD. [Active] CIN = U51109WB1991PTC052055

Company & Directors' Information:- K A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45201DL2004PTC128162

Company & Directors' Information:- M P ASSOCIATES PRIVATE LIMITED [Active] CIN = U51909UP2002PTC026702

Company & Directors' Information:- B R S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74900WB2013PTC196599

Company & Directors' Information:- B N R ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U70101AS2005PTC007894

Company & Directors' Information:- FORTUNE INDIA PRIVATE LIMITED [Strike Off] CIN = U29302DL2002PTC114932

Company & Directors' Information:- G M G ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL2000PTC108670

Company & Directors' Information:- E-ASSOCIATES INDIA PRIVATE LIMITED [Active] CIN = U72200KA2006PTC039989

Company & Directors' Information:- S. J. ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45202UP1996PTC021158

Company & Directors' Information:- M M AND ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45101UP1987PTC008758

Company & Directors' Information:- M J ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U70101DL1984PTC018559

Company & Directors' Information:- H K FORTUNE PRIVATE LIMITED [Strike Off] CIN = U52391DL2000PTC108889

Company & Directors' Information:- N N ASSOCIATES PRIVATE LIMITED [Under Process of Striking Off] CIN = U25199TN1980PTC008508

Company & Directors' Information:- A J ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74899DL1988PTC031458

Company & Directors' Information:- R G ASSOCIATES PVT LTD [Strike Off] CIN = U70101WB1982PTC034627

Company & Directors' Information:- C S AND ASSOCIATES PRIVATE LIMITED [Active] CIN = U45201TZ2005PTC011859

Company & Directors' Information:- K K AND ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74900MH2012PTC235376

Company & Directors' Information:- M C M ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U72200DL2001PTC112757

Company & Directors' Information:- S H A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45202DL2003PTC120698

Company & Directors' Information:- A D ASSOCIATES PVT LTD [Strike Off] CIN = U74300PB1991PTC011428

Company & Directors' Information:- M V M ASSOCIATES PRIVATE LIMITED [Active] CIN = U33111TN1986PTC013191

Company & Directors' Information:- U S ASSOCIATES PRIVATE LTD [Strike Off] CIN = U74130DL1981PTC012217

Company & Directors' Information:- R. R. P. & ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74140RJ2014PTC045409

Company & Directors' Information:- V. S. ASSOCIATES PRIVATE LIMITED [Active] CIN = U36998RJ1994PTC008939

Company & Directors' Information:- C A A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45400MH2011PTC223468

Company & Directors' Information:- L R ASSOCIATES PRIVATE LIMITED [Active] CIN = U74140MH1992PTC066242

Company & Directors' Information:- J. C. ASSOCIATES PRIVATE LIMITED [Active] CIN = U74999UP2011PTC046779

Company & Directors' Information:- A R M ASSOCIATES PRIVATE LIMITED [Active] CIN = U74900JK2012PTC003703

Company & Directors' Information:- R A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U67120CH2003PTC025995

Company & Directors' Information:- D M ASSOCIATES PRIVATE LIMITED [Active] CIN = U70100CH2004PTC026958

Company & Directors' Information:- M M R ASSOCIATES PVT LTD [Strike Off] CIN = U74300DL2001PTC110589

Company & Directors' Information:- S M S ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1975PTC007653

Company & Directors' Information:- V D ASSOCIATES PRIVATE LIMITED [Active] CIN = U74899DL1988PTC030677

Company & Directors' Information:- W G ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U00000DL1988PTC030330

Company & Directors' Information:- P. T. & ASSOCIATES PRIVATE LIMITED [Active] CIN = U74140DL2006PTC155265

Company & Directors' Information:- V R ASSOCIATES PRIVATE LIMITED [Active] CIN = U70109DL2013PTC246964

Company & Directors' Information:- D B N ASSOCIATES PRIVATE LIMITED [Active] CIN = U15541DL2003PTC118638

Company & Directors' Information:- A G B ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U51393DL2002PTC115685

Company & Directors' Information:- G. V. ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U67190DL2002PTC118104

Company & Directors' Information:- W E ASSOCIATES PRIVATE LIMITED [Active] CIN = U74140MP2008PTC021080

Company & Directors' Information:- G G ASSOCIATES PRIVATE LIMITED [Active] CIN = U93000HR2013PTC050025

Company & Directors' Information:- A AND K ASSOCIATES PRIVATE LIMITED [Active] CIN = U45200GJ2012PTC069296

Company & Directors' Information:- R. H. ASSOCIATES PRIVATE LIMITED [Active] CIN = U29309HR2019PTC079463

Company & Directors' Information:- J. K. ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45203JK1981PTC000505

Company & Directors' Information:- M J ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U00061KA1984PTC005829

Company & Directors' Information:- S AND A ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74300DL1992PTC049422

Company & Directors' Information:- A & A ASSOCIATES PVT LTD [Not available for efiling] CIN = U19111WB1973PTC029043

Company & Directors' Information:- D & I ASSOCIATES COMPANY PRIVATE LIMITED [Strike Off] CIN = U74120DL2007PTC166193

Company & Directors' Information:- B M ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U45200DL2006PTC155219

Company & Directors' Information:- S C M ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74140OR1989PTC002300

Company & Directors' Information:- B N C ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U17121DL1984PTC018075

Company & Directors' Information:- Y P ASSOCIATES PVT LTD [Not available for efiling] CIN = U91120CH1983PTC005442

Company & Directors' Information:- I D ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC037213

Company & Directors' Information:- M M S ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U74210MH1999PTC119537

    Arbitration Application No. 157 of 2014

    Decided On, 23 June 2020

    At, High Court of for the State of Telangana

    By, THE HONOURABLE MR. JUSTICE A. RAJASHEKER REDDY

    For the Applicant: Raghavendra Rao, D. Madhava Rao, Advocates. For the Respondent: Manasi Ganu, Sunil B. Ganu, Advocates.



Judgment Text

1. This Arbitration Application is filed under Section 11(5) & (6) of the Arbitration & Conciliation Act, 1996, for appointment of an arbitrator.2. It is the case of the applicant that he is the owner and possessor of the plot bearing No.708, admeasuring 1210 sq.yds (before road widening) and 1050 sq.yds (after road widening) bearing municipal No.8-2-293/82/A/708 in Old Survey No.403/1 and New Sy.No.120 of Shaikpet village, forming part of Jubilee Hills Co-operative House Building Society, Hyderabad situated at Road No.36, Jubilee Hills, Hyderabad, having purchased the same from Jubilee Hills Cooperative House Building Society vide registered sale deed bearing No.559/1986 dated 05.03.1986. Out of 1050 sq.yds of land, he sold 350 sq.yds to the respondents and retained 700 sq.yds with him. The 1st respondent is a partnership firm and the respondents 2 to 6 are its partners. The applicant entered into registered Development Agreementcum- General Power of Attorney with the respondents on 06.09.2008 vide document No.3536/2008. As the respondents failed to complete the project within the time agreed upon, the applicant suffered losses due to the negligence of the respondents. The applicant got issued legal notice dated 11.07.2014 to the respondents to complete the construction, but there is no reply from the respondents. The applicant once again got issued legal notice on 25.08.2014 invoking arbitration clause to nominate the arbitrator of their choice, but the respondents have not acted upon. Hence, this application.3. Counter affidavit is filed by the respondents denying the averments in the affidavit filed in support of this application admitting about the execution of Development Agreement-cum-GPA dated 06.09.2008 between the parties. There is no violation of any conditions of the development agreement and that there is no liability cast upon the respondents, to pay damages, as alleged by the applicant. That issuance of legal notice dated 11.07.2014 followed by second notice dated 25.08.2014 is not disputed, but it is stated that the said notice is an inappropriate notice without any cause of action. It is asserted that after execution of the development agreement and after obtaining necessary permissions/sanctions from the concerned authorities, they have proceeded for development of the property, but due to various exigencies and circumstances that arose during such development, a supplementary agreement bearing No.1392 of 2009, dated 04.05.2009 was entered into between the applicant and the respondents, which fact has been suppressed by the applicant in this application. Subsequent 5 thereto, as per mutual understanding arrived at after incorporating appropriate changes in the building plan etc., an agreement dated 09.01.2014 was executed between the parties which is styled as Rectification Deed relating to the supplementary agreement bearing document No.650/2014. As per clause (g) of the development agreement dated 06.09.2008, the respondents had paid a total sum of Rs.1,80,00,000/- towards interest free refundable deposit to the applicant, which was agreed to be refunded by the applicant on completion of the construction of super structure as and when the super structure is fit for occupation or from the first sale of owners share. That after completion of construction and after incorporation of necessary changes, an understanding was arrived at between the applicant and the respondents specifically as to completion of the project and it is in the said circumstances a Rectification deed relating to the supplementary agreement dated 09.01.2014 was executed between the applicant and the respondents and clauses (2), (3) & (4) of the said agreement deals with the same. It is specifically agreed that he will have no further claim of whatsoever nature about the area allotted to him or entitlement by him under the original development agreement or under the supplementary agreement. The respective areas allotted to the applicant stood delivered to him as per clause 3 of the agreement, there is a specific acknowledgment by the applicant that the party of the second part i.e. respondents have fulfilled their part of obligation as per the terms and conditions of the development agreement and that they are absolved of all their obligations under the development agreement, supplementary agreement and rectification deed relating to the supplementary agreement, as such, the applicant is estopped from raising any contrary claims and that the applicant having acknowledged complete performance of the contract by the respondents and having absolved the respondents from any liability, the applicant is not entitled to raise any contrary claims. That the applicant has not given the details of the alleged efforts made for amicable settlement of dispute by mutual consultation and failure thereof which is a precondition to be satisfied before filing this application, as such, the present application is premature. That the applicant has not nominated any sole arbitrator either in the notice dated 11.07.2014 or in the subsequent notice dated 25.08.2014, as such, the basic requirement for proceeding under Section 11(5) of the Act has not been complied with, as such, he sought for dismissal of the application.4. Heard Sri Raghavendra Rao, learned counsel representing Sri D.Madhava Rao, learned counsel for the applicant and Ms. Manasi Ganu, learned counsel representing Sri Sunil B.Ganu, learned counsel for the respondents.5. Learned counsel for the applicant while reiterating the averments in the affidavit filed in support of the application, submits that the Development Agreement-Cum-GPA dated 06.09.2008 contains an arbitration clause and when the respondents failed to fulfill the terms of the agreement, the applicant got issued legal notice dated 11.07.2014 for completion of the project and as there is no reply, another legal notice dated 25.08.2014 was issued invoking the arbitration clause. Though the respondents received the same, there is no response from the respondents, which goes to show that the existence of arbitration clause is not disputed. Whether there is full and final satisfaction of the claim between the parties have to be gone into by the arbitrator, as the same requires leading of evidence and production of documents. He submits that the full and final satisfaction, as contended by the learned counsel for the respondents relating to rectification deed dated 09.01.2014 is not with free consent and petitioner had to sign the same under coercion and undue influence and the said aspect is raised in the rejoinder filed in this application. There is no need to mention about the supplementary agreement as well as rectification deed, as the same is not a material fact, as such, non-mentioning of the same, does not disentitle the applicant from claiming relief in this application. That the applicant has not obtained any interim orders by suppressing the above facts, but it is sheer mistake of fact and for that the respondents cannot take plea of suppression of material facts. That the applicant has rented out the premises on the fond hope that the respondents will complete the construction within the time bound manner as envisaged in the development agreement. Since the respondents failed to complete the construction and deliver the constructed area pertaining to the applicant within the time bound manner, the prospective tenants cancelled the lease and sought for damages, which goes to show that the respondents have not completed the construction within the stipulated time, as agreed upon between the parties, as such, this application is maintainable and he is entitled for damages. He also submits that non mentioning about supplementary agreement and rectification deed is bonafide mistake, but not intentional and there is no suppression of material fact. In support of his contention, he relied on the judgments reported in National Insurance Co., Limited v. Boghara Polyfab Private Limited (2009 (1) SCC 267), Oriental Insurance v. Digitex (2019 SCC online page 1458), S.J.S.Business Enterprises (P) Ltd, v. State of Bihar (AIR 2004 SC 2421) and Payal Properties Pvt. Ltd., v. I.B.Enterprise in O/IAAP/5/13 of Gujarat High Court.6. On the other hand, learned counsel for the respondent submits that the application is liable to be dismissed in limine solely on the ground of suppression of material facts i.e., about execution of supplementary agreement as well as rectification deed in which full and final satisfaction was recorded and refundable amount of Rs.1,80,00,000/- was paid to the applicant. She submits that the person who comes to the Court must come with clean hands and only on the ground of suppression, the person should be disentitled from claiming any relief. She submits that the application is silent about the supplementary agreement as well as rectification deed, but only in rejoinder, a bald plea is raised without any supporting material, as such, unless this Court comes to prima facie conclusion that there is coercion and undue influence, the matter cannot be referred to arbitration. Since the execution of rectification deed is not in dispute and there is full and final satisfaction recorded no arbitrable dispute exists, as such, arbitration application cannot be entertained. The arbitration clause provides for mutual consultations before invoking arbitration clause, but the same is not invoked by the applicant, as such, on this ground also, this application is liable to be dismissed. Initially, the trial Court allowed the application filed by the applicant under Section 9 in OP No.510 of 2015 on the file of XXIV Additional Chief Judge, City Civil Court, Hyderabad, but the same was suspended by the Hon’ble Division Bench in CMA No.837 of 2015 only on the ground of suppression of material facts as was done in the present application. In support of her contentions, she relied on the judgments reported in ONGC Mangalore Petrochemicals v. ANS Constructions Limited (2018) 3 SCC 373), New India Assurance Company Limited v. Genus Power Infrastructure Limited (2015) 2 SCC 424), United India Insurance Company Limited v. Antique Art Exports Private Limited (2019) 5 SCC 362), Union of India and others v. Master Construction Company (2011) 12 SCC 349), Wapcos Limited v. Salma Dam Joint Venture (2020) 3 SCC 169)a nd K.D.Sharma v. Steel Authority of India Limited (2008 (12) SCC 481).7. In view of above rival contentions, the following issues that arise for consideration are:1) Whether the applicant is entitled for relief in view of suppression of supplementary agreement dated 04.05.2009 as well as rectification deed dated 09.01.2014?2) Whether there is valid and final satisfaction pleaded by the respondents through the rectification deed pleaded by the respondents in terms of rectification deed, can be a ground to dismiss the application?3) Whether the applicant prima facie established coercion and undue influence in executing the rectification deed?8. POINTS 1 TO 3: In this case, it is to be seen that admittedly, the Development Agreement-cum-General Power of Attorney dated 06.09.2008 bearing document No.3536 of 2008 was entered into between the petitioner and the respondents for construction of commercial complex in the subject property. Subsequent to the same, Supplementary Agreement dated 04.05.2009 and Rectification Deed dated 09.01.2014 were also executed, which are not in dispute. But while invoking arbitration clause, the applicant issued notice dated 25.08.2014, but he did not mention about the Supplementary Agreement or Rectification deed. That apart, in the affidavit filed in support of this application also, the applicant did not refer to the Supplementary Agreement so also the Rectification Deed. The applicant raised plea of coercion in executing rectification deed, only after filing of the counter affidavit by the respondent, by way of rejoinder on 03.02.2016 after a period of four months. Even therein also, the execution of the Supplementary Agreement and Rectification Deed was not disputed, but only pleaded that he executed those documents under coercion and undue influence. The admission of the applicant in the rejoinder about the execution of Supplementary Agreement and Rectification Deed, goes to show that the applicant not disputed about the existence of the said documents at the time of filing of this application. Except bald plea in the rejoinder by the applicant, no factual foundation is laid in the pleadings.9. That apart, the applicant filed OP No.510 of 2015 on the file of 24th Additional Chief Judge, City Civil Court, Hyderabad under section 9 of the Act for grant of injunction against respondent, which was allowed on 24.07.2015. However, on an appeal by the respondents, the same was suspended on 21.09.2016 in CMAMP No.1803 of 2015 in CMA NO.837 of 2015 by this Court on the ground of suppression of rectification deed relating to supplementary agreement dated 09.01.2014.10. It is pertinent to note that the applicant failed to offer any plausible explanation for non disclosure of existence of Supplementary Agreement and Rectification Deed in the affidavit filed in support of this application. More so, the suppression of rectification deed, which records full and final satisfaction between the parties, is the material document for the disposal of the arbitration application. The rectification deed is a material document since it contains about refund of deposit of Rs.1,80,00,000/- and acknowledgment and clause 4 of the agreement reads as follows:“Clause 4:With this total interest free refundable amount of Rs.1,80,00,000/- (rupees one crore and eighty lacks) has been paid by the parties of the first part to the parties of the second part, the receipt of which the party of the second part (developer) admits and acknowledges. The lien on the said property mentioned will be released and possession of the schedule I and schedule II property shall be handed over only on the realization of the above mentioned cheques. The party of the second part has fulfilled their part of obligation as per the terms and conditions of the development agreement, and the party of the second party is absolved of all its obligation under the above said development agreement and subsequent supplementary agreement and rectification deed relating to supplementary agreement.”Since the rectification deed is a material document, which recorded full and final satisfaction, which has been suppressed by the applicant, it cannot be said that there is no suppression of material facts, as contended by the learned counsel for the respondents. Since the full and final satisfaction is found in the Rectification deed, the arbitration application is liable to be dismissed on that ground alone. A party who comes to the court, must come with clean hands. When fraud, undue influence and coercion is pleaded, foolproof must be set forth in the pleadings and case can only be decided basing on the same. General allegations are insufficient if they are made in which such allegations should couch to establish undue influence. In the rejoinder, by way of passing reference made allegations of undue influence and coercion, as such, this application is liable to be dismissed.11. A perusal of the rectification deed, especially clauses 2 and 4 goes to show that full and final settlement was recorded and it was also agreed by the applicant that he would have no claim whatsoever over and above the areas allotted to them, by virtue of the rectification deed relating to supplementary agreement. It is also clear that the respondents have fulfilled their part of obligations as per the terms and conditions of development agreement, rectification deed and supplementary agreement. Therefore, there is no arbitral dispute between the parties. When once there is full and final satisfaction, there exists no arbitral dispute, as rightly contended by the learned counsel for the respondents.12. Since invocation of arbitration proceedings is prior to Amendment Act, 2015, the provisions of said Act, 2015 are not applicable to such arbitral proceedings which have commenced in terms of the provisions of Section 21 of the Principal Act, unless otherwise agreed by the parties. (see Union of India vs. Parmar Construction Company) (2019) 15 SCC 682). The aforesaid principle was followed in the case of Union of India v. Pradeep Vinod Construction Company reported (2020 (2) SCC 464). While considering an application under Section 11(6) of the Act, the Hon’ble Supreme Court held that if the party is unable to establish a claim of undue influence or fraud, or appears to be lacking in credibility, it is not open to the Court to refer the dispute to arbitration. (see ONGC Mangalore Petrochemicals v. ANS Constructions Limited (supra). A bald plea of undue influence is not sufficient. The applicant has to establish a prima facie case. Without establishing the prima facie case of fraud and undue influence by placing material on record, applicant is not entitled to reference of the matter to the arbitration. (see New India Assurance Company Limited v. Genus Power Infrastructure Limited (supra). When once one of the parties adopts a path of full understanding and executes a document in furtherance of the same, it is not open to him to take recourse to arbitration thereafter. (see Wapcos Limited v. Salma Dam Joint Venture (supra). 13. In National Insurance Co., Limited v. Boghara Polyfab Private Limited (supra), which is relied on by the learned counsel for the petitioner, Hon’ble Apex Court held as follows:“17. Where the intervention of the Court is sought for appointment of an Arbitral Tribunal under Section 11, the duty of the Chief Justice or his designate is defined in SBP & Co. This Court identified and segregated the preliminary issues that may arise for consideration in an application under Section 11 of the Act into three categories, that is (i) issues which the Chief Justice or his Designate is bound to decide; (ii) issues which he can also decide, that is issues which he may choose to decide; and (iii) issues which should be left to the Arbitral Tribunal to decide.17.1 The issues (first category) which Chief Justice/his designate will have to decide are:(a) Where the party making the application has approached the appropriate High Court.(b) Whether there is an arbitration agreement and whether the party who has applied under Section 11 of the Act, is a party to such an agreement.17.2 The issues (second category) which the Chief Justice/his designate may choose to decide (or leave them to the decision of the arbitral tribunal) are:(a) Whether the claim is a dead (long barred) claim or a live claim.(b) Whether the parties have concluded the contract/transaction by recording satisfaction of their mutual rights and obligation or by receiving the final payment without objection.17.3 The issues (third category)

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which the Chief Justice/his designate should leave exclusively to the arbitral tribunal are:(i) Whether a claim made falls within the arbitration clause (as for example, a matter which is reserved for final decision of a departmental authority and excepted or excluded from arbitration).(ii) Merits or any claim involved in the arbitration….” In the first category of cases, the issues which the Chief Justice or his Designate is bound to decide.In the second category of cases, the issues which the Chief Justice can also decide, that is issues which he may choose to decide; and the third category of cases, in which the issues which should be left to the Arbitral Tribunal to decide.In the second category, it is clarified that those issues can either be decided by the chief justice or referred to arbitrators. In this case, the respondents have taken a plea of full and final satisfaction and the applicant pleaded fraud, undue influence and coercion, but failed to establish the same. The applicant also suppressed about the execution of supplementary deed 04.05.2009 and Rectification Deed 09.01.2014, as such, this Court took up that issue and found that there is full and final satisfaction and suppression of the same, as such, said judgment relied on by the applicant cannot be come to his rescue.14. Judgment cited by the learned counsel for the applicant in the case of Payal Properties Private Limited v. I.B.Enterprise in case No./O/IAAP/5/2013 of Gujarat High Court, is also not applicable to the facts of the case, since this Court found that the suppression of documents is material one, which goes to the root of the matter. Even in the arbitration application, there is no whisper about the amicable settlement between the parties and that the applicant had proposed for amicable settlement with the respondents.In view of above facts and circumstances, this Arbitration Application is liable to be dismissed and accordingly dismissed. There shall be no order as to costs.As a sequel thereto, miscellaneous applications, if any, pending in this Arbitration Application, shall stand dismissed.
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